Chaintech Has No Plans to Leave Motherboard Market

haintech Has No Plans to Leave Motherboard Market - Company Will Introduce Memory Module Line and Change Name to Walton Chaintech Corporation

ZHONGHE CITY, TW & FREMONT, CA (Sept. 13, 2005) — Chaintech Computer Co., today announced it has “no plans to abandon the motherboard market.” The comments are in response to published news stories, which incorrectly reported that the company would phase out its motherboard business.

In addition, Chaintech announced that Walton Advanced Engineering, Inc. has acquired a 25-percent stake in Chaintech and the company will be renamed Walton Chaintech Cooperation. Founded in 1995, Walton Advanced Engineering Inc., is a memory semiconductor assembly and testing provider headquartered in the Kaohsiung Export Processing Zone (K.E.P.Z.) in Taiwan.

Walton Chaintech plans to introduce a new line of Chaintech-branded memory modules in the fourth quarter of 2005. Chaintech assured its dealers, distributors and customers that the company has no intentions to eliminate its motherboard business and will continue to manufacture motherboards, graphics cards and set top boxes.

“Chaintech will phase in a new memory module business to diversify and strengthen the overall growth and profitability of the company. We will maintain our current motherboard and graphics board business and continue to design new products in these areas for gamers, entertainment PCs, consumers and business,” said Chaintech President Simon Ho.

Chaintech recently released several new motherboard and graphic board designs this summer and has a number of new models scheduled for fall 2005 and early 2006 release.