10:07     TCL MULTIMEDIA<01070> - Announcement (3)                            

    As part of the changes to be made to the agency model, Thomson's          
    worldwide design and styling group (including packaging, and user         
    interface) will also be transferred to TTE and this will give rise        
    to changes to the existing Styling Agreement under which Thomson          
    acts as an exclusive styling service provider for all TV products         
    of the Group bearing ``Thomson'' or ``RCA'' trademarks.                   
                                                                              
    Further, the MOU also contemplates certain modifications to the           
    trademark license fees payable by TTE to Thomson under the Thomson        
    Trademark Agreement pursuant to which Thomson has granted the             
    Group the right to use certain of its registered trademarks for           
    the manufacture and sale of TV products in certain countries.             
    Further details of these modifications will be included in the            
    announcement relating to the Definitive Agreements. The                   
    modification to the trademark license fee will constitute a               
    material variation to the transactions in respect of which                
    previous Independent Shareholders' approval was obtained and              
    accordingly they will be subject to Independent Shareholders'             
    approval.                                                                 
                                                                              
    ANGERS MOU                                                                
                                                                              
    Parties:                                                                  
                                                                              
    (i)   Thomson S.A.                                                        
    (ii)   TTE Corporation                                                    
                                                                              
    Under the existing Angers Agreement, TTE purchases TV products            
    from the Angers Factory at a price calculated to have the                 
    consequence that TTE does not suffer any loss or make any profit          
    from the purchase of such products. The Angers MOU contemplates           
    that going forward Thomson will act as a subcontractor to TTE in          
    relation to the production at the Angers Factory. The TTE Board           
    is of the view that this subcontracting approach will be a more           
    appropriate model for TTE as it will enable TTE to have direct            
    control over the production cost and types of products made by the        
    Angers Factory so that changing market demands can be more easily         
    met. The Angers MOU also contemplates changes to the arrangement          
    in respect of labour usage, transfer of certain business                  
    activities and Materials of the Angers Factory.                           
                                                                              
    Transactions contemplated under the Angers MOU will constitute a          
    material variation to the Angers Agreement and accordingly they           
    will be subject to Independent Shareholders' approval. In addition,       
    the Subcontracting Service will constitute an ongoing connected           
    transaction of the Company and will require the approval of the           
    Independent Shareholders as it is expected to exceed 2.5% of the          
    Relevant Ratio. Further details of these arrangements will be             
    included in the announcement relating to the Definitive                   
    Agreements.                                                               
                                                                              
    OBLIGATIONS OF THE PARTIES UNDER THE MOUS                                 
                                                                              
    The MOUs provide that the parties will use all reasonable efforts         
    to negotiate and finalize the Definitive Agreements by 15 May 2005        
    in accordance with the business principles set out therein.               
                                                                              
    DURATION OF THE MOUS                                                      
                                                                              
    The MOUs shall become effective upon execution by the parties and         
    shall continue in force until the earlier of:                             
                                                                              
    (a)   such date as the parties to the MOUs may agree in writing           
    to terminate the relevant MOU;                                            
                                                                              
    (b)   the execution of the Definitive Agreement(s) in respect of          
    the relevant MOU; and                                                     
                                                                              
    (c)   such date of termination as determined by a party in                
    accordance with the provisions therein.                                   
                                                                              
    CONDITIONS PRECEDENT                                                      
                                                                              
    Closing of the transactions contemplated under the MOUs and the           
    Definitive Agreements shall be conditional upon all the conditions        
    set forth below being satisfied on or before 30 June 2005, failing        
    which any party may elect to terminate either of the MOUs by giving       
    the other party or parties not less than 14 days' written notice:         
                                                                              
    (i)   approval of the transactions contemplated thereunder by the         
    Independent Shareholders and board approval of Thomson; and               
                                                                              
    (ii)   clearances from the Stock Exchange of the documents and            
    announcements required to be prepared and made for the                    
    transactions contemplated by the MOUs and the Definitive                  
    Agreements.