Publish Date:12/13/2011

[PRESS]

Well Communication Corp. is scheduled to go public in mid-Jan. 2010. The new plant in Lung-Tan is in its final stages of establishment

Taipei, Taiwan, November 15, 2011 - Well Communication Corp., a leading supplier of network communication in Taiwan. The new plant located in Lung-Tan is in its final stages of establishment. Its production capacity was built to meet the demand created from future IA and broadband products. In the first stage, there will be 4 SMT high-speed production lines installed and it is expected to go mass production in February 2001.

Well Communication is specialized in network communications. The current production lines include 2 categories of data communications and information appliances. Analog modem, ISDN, ADSL, Cable Modem, etc are grouped into data communications products. STB and STB modules are part of IA products. The revenue shares are 48.85% and 51.15% respectively. Gary Wang, the President, said" There will be 10% growth in 2000 over 1999 for Well Communication due to serious shortage of main components plus price cuts resulting from keen competition on conventional modem products. As Well Communication always stress order quality, the company would never join the cutthroat competition. The company will safeguard shareholder's interests and stick to maintain the operation. Although the revenue growth is only 10%, the gross profit rate remains at an index of 10%. " The revenue of 2000 will reach NT$2.7 billion, with pre-taxes earnings at NT$ 65 millions, totaling an EPS of NT$1.20. The accumulated revenue is up to NT$2.1 billions in October and pre-taxes earnings of the first taxes totalizes NT$44 millions, converted into EPS of NT$0.81. The NT$1.04 EPS target set to this year is expected to be attained.

The arrival of the post PC era, the Internet capability is a required skill for everyone. In 1998, in view of the slide of gross profits in the Modem market, Well Communication entered aggressively in the IA products field to explore in technical application levels and to promote added value. The company cut into IA market with STB. The STB is split in the transmission level in 2 categories, one with a built-in 56K modem and the other consists of a 10M Ethernet adapter thus, connecting to the broadband (ADSL or Cable Modem) through an Ethernet interface. The customers of the former are mainly consisted by telecommunication companies or ISP, while the later is mainly consisted by system integrated companies. The STB introduced this year by Well Communication is within strategic cooperation with KCOM and has already being introduced into the Japanese market. The shipping volume is growing gradually. Since the growth of the STB market lags 6 months from the original estimation of experts, the contribution of STB will be shown in 2001. Well Communication is also negotiating with major Japanese appliances firms in OEM/ODM form to develop a new generation of STBs. The new generation will enhance the audio and video function to meet the Internet demand in the broadband network multimedia age.

The new plant of Well Communication located in Lung-Tan is soon to be completed. The investment of its new plant amounts US$ 15 millions, including land and plant construction. It locates at Kung-5 Road of Lung-Tan County. The plant has 5 floors above ground and one basement of 26,371 sq. ft. totaling floor space of 148,391 sq. ft. The plant can accommodate 8 high-speed SMT (Surface Monitoring Technology) production lines. There will be AS/RS (Automated Storage/Retrieval system) and SFM (Shop Flow Management) System. Currently the plant is in the equipment installation stage and will perform its trial production by the end of the current year. In the initial stage, it will expand to 4 high-speed SMT production lines and it is expected to go mass production in February of 2001. The production capacity of the Lung-Tan plant has as a mission to meet the demand of future IA and broadband products..

Well Communication Corp.