10:45     FIH<02038> - Announcement (2)                                       

    industry dedicated to providing worldwide top-tier handset brand          
    names with one-stop shop services ranging from design, manufacturing,     
    testing to cutting edge wireless technology applications. Its             
    business focus is mainly on OEM/ODM of GSM, GPRS, EDGE handsets and       
    modules.                                                                  
                                                                              
    For the year ended 31 December 2004, the audited net asset value of       
    CMCS was approximately NT$1,817 million (US$57.03 million).               
                                                                              
    For the financial year ended 31 December 2004, the audited net            
    profits before and after taxation and extraordinary items of CMCS         
    were approximately NT$394 million (US$12.37 million) and NT$391           
    million (US$12.27 million), respectively. For the financial year          
    ended 31 December 2003, the audited net profits before taxation and       
    extraordinary items and audited net losses after taxation and             
    extraordinary items of CMCS were approximately NT$5 million (US$0.16      
    million) and NT$36 million (US$1.13 million), respectively.               
                                                                              
    REASONS FOR AND BENEFITS OF THE ACQUISITION                               
    It is the Group's principal strategic objective to be the leading         
    manufacturing services provider in the handset industry. The              
    acquisition of a controlling interest in CMCS will enhance the            
    Group's design capabilities, reinforce the Group's vertical               
    integration business model to compete more effectively, as well as        
    strengthen the Group's services and the provision of value-added          
    services to its key customers. It will also provide the Group with        
    opportunities for revenue growth and margin improvement.                  
                                                                              
    The Directors believe the terms of the transaction are fair and           
    reasonable and in the interests of the Shareholders as a whole.           
                                                                              
    GENERAL                                                                   
    Upon completion of the Acquisition, CMCS will become a subsidiary of      
    the Company. The Acquisition will be funded by internal resources of      
    the Group.                                                                
                                                                              
    The Group is a leading vertically integrated manufacturing services       
    provider for the handset industry worldwide. It provides a full range     
    of manufacturing services to its customers in connection with the         
    production of handsets.                                                   
                                                                              
    Chi Mei's principal business activities are in the petro chemical         
    industry. Chi Mei was the first acrylic sheet manufacturer in Taiwan.     
    Not only being one of the largest ABS, PS, AS, BR and PMMA                
    maker in the world, Chi Mei has also ventured into different              
    fields such as food, hospitality, telecommunication, trading,             
    and other hi-tech manufacturing industries.                               
                                                                              
    The principal business activity of Jentra is investment and it is a       
    42% owned subsidiary of Chi Mei.                                          
                                                                              
    The Acquisition constitutes a discloseable transaction of the             
    Company under the Listing Rules. A circular containing, inter alia,       
    further information on the Acquisition will be despatched to the          
    Shareholders in accordance with the relevant requirements of the          
    Listing Rules.                                                            
                                                                              
    To the best of the knowledge, information and belief of the               
    Directors having made all reasonable enquiries, the Vendors and their     
    respective ultimate beneficial owners are third parties independent       
    of the Company and connected persons (as defined under the Listing        
    Rules) of the Company.                                                    
                                                                              
    DEFINITIONS                                                               
    `ABS'                          Copolymer of Acrylonitrile,                
                                   Butadiene and Styrene                      
    `Acquisition'                  the acquisition by Transworld              
                                   of a total of 84,713,000                   
                                   shares of CMCS (representing               
                                   56.48% of its total issued                 
                                   share capital) from the                    
                                   Vendors pursuant to the                    
                                   Agreements                                 
    `Agreements'                   the CM Agreement and Jentra                
                                   Agreement                                  
    `AS'                           Acrylic Sheet                              
    `Board'                        the board of Directors                     
    `BR'                           Butadiene Rubber                           
    `Chi Mei'                      Chi Mei Corporation, a                     
                                   company incorporated in                    
                                   Taiwan                                     
    `CM Agreement'                 the sale and purchase                      
                                   agreement dated 12 May 2005                
                                   between Transworld and Chi                 
                                   Mei in respect of the                      
                                   acquisition by Transworld of               
                                   69,788,000 shares of CMCS                  
                                   (representing 46.53% of its                
                                   total issued share capital)                
                                   from Chi Mei                               
    `CMCS'                         Chi Mei Communications                     
                                   Systems, Inc., a company