10:23     NAM TAI EEP<02633> - Announcement (1)                               

    The Stock Exchange of Hong Kong Limited takes no                          
    responsibility for the contents of this announcement,                     
    makes no representation as to its accuracy or                             
    completeness and expressly disclaims any liability                        
    whatsoever for any loss howsoever arising from or in                      
    reliance upon the whole or any part of the contents                       
    of this announcement.                                                     
                                                                              
    This announcement appears for information purposes                        
    only and does not constitute an invitation or offer                       
    to acquire, purchase or subscribe for shares.                             
                                                                              
    NAM TAI ELECTRONIC & ELECTRICAL PRODUCTS LIMITED                          
    (Incorporated in the Cayman Islands with limited                          
    liability)                                                                
    (Stock Code: 2633)                                                        
                                                                              
    ACQUISITION OF                                                            
    NAMTEK SOFTWARE DEVELOPMENT COMPANY LIMITED                               
                                                                              
    DISCLOSEABLE AND CONNECTED TRANSACTION                                    
                                                                              
    The Board is pleased to announce that on 8 April 2005,                    
    the Company entered into the Sale and Purchase                            
    Agreement with, among others, NTE Inc. and Asano                          
    Company for the acquisition of 80% and 20% interests                      
    in Namtek respectively.                                                   
                                                                              
    Namtek has two wholly-owned subsidiaries, namely                          
    Namtek Japan and Namtek Shenzhen. Namtek Group offers                     
    a wide range of services on software development, data                    
    processing and compression and electronic hardware                        
    design and development specializing in digital                            
    dictionaries and car navigation system.                                   
                                                                              
    The total consideration for the Acquisition, which                        
    amounts to US$26.7 million (approximately HK$208.3                        
    million), will be satisfied by the issue of the                           
    Consideration Shares to the Vendors (65,336,470                           
    Shares to NTE Inc. and 16,334,118 Shares to Asano                         
    Company, or as they may direct respectively) at                           
    HK$2.55 each. The Consideration Shares represent                          
    approximately 10.2% and 9.3% of the Company's                             
    existing and enlarged issued share capital                                
    respectively. An application will be made by the                          
    Company to the Stock Exchange for the listing of, and                     
    permission to deal in, the Consideration Shares.                          
                                                                              
    The issue price of the Consideration Shares of HK$2.55                    
    each is equivalent to the closing price of the Shares                     
    on 31 March 2005. The consideration for the                               
    Acquisition has been determined with reference to the                     
    consolidated net profits of Namtek for the financial                      
    year ended 31 December 2004 and the price earnings                        
    multiple of the Company based on the closing price                        
    of the Shares on 31 March 2005 of approximately 11.3                      
    times.                                                                    
                                                                              
    NTE Inc. is the 71.25% holding company of the Company                     
    and hence a connected person of the Company for the                       
    purpose of the Listing Rules. Asano Company is                            
    beneficially owned as to 49.9999% by Mr. Asano, a                         
    director of Namtek and his associate, and as to                           
    50.0001% by Mr. Liu, another director of Namtek. As                       
    each of the percentage ratios (other than the profits                     
    ratio) is more than 2.5% and the total consideration                      
    for the Acquisition is more than HK$10,000,000, the                       
    Acquisition constitutes a connected transaction of                        
    the Company under Chapter 14A of the Listing Rules                        
    and is subject to the approval by the independent                         
    Shareholders.                                                             
                                                                              
    The total consideration for the Acquisition