PROVIEW is the fifth largest display devices manufacturer in the world, commanding a healthy product mix of CRT and LCD monitors. Though the LCD monitor line will surely be the growth driver of the display industry, the demand for CRT monitors remains substantial and constant. The CRT monitor market has already undergone severe consolidation and only a few players remain.

Mr Rowell Yang, Chairman and Managing Director of PROVIEW noted: "Our overall strategy is to generate a stable cash flow and profitability with our strong leverage in the CRT monitor business to enable us to compete in the burgeoning yet already very competitive LCD monitor market. In line with this master plan, we have increased our capacity of CRT monitors to 10 million units per annum in order to extend our lead in this market. At the same time, we have raised capacity for LCD monitors to 4.5 million units to secure a larger market share."

Consolidation in the LCD monitor market is expected to accelerate and orders will flow to manufacturers who offer world-class production capabilities and can add value through further integration of manufacturing processes. PROVIEW is committed to continuous vertical integration with a view to improving profit margin and staying ahead in the market.

Mr Luffer Wong, Executive Director of PROVIEW added: "Upstream integration adds downstream value and gives us a competitive advantage in the commodity markets. Our continuous efforts under this initiative have extended our vertical capabilities into in-house production of major components including deflection yokes and LCD modules."

PROVIEW's global display solutions were further expanded through a recent strategic alliance with Motorola, Inc. (NYSE: MOT). Initial products to be released under this agreement will include LCD computer displays and LCD and Plasma televisions, automotive video, as well as CD/DVD players, recorders and drives. This line of Motorola branded display products will support high quality entertainment applications, as well as digital content access and control via wired or wireless integration with connected devices throughout the home. The two companies will debut initial products for the China market towards the end of 2003 and phased rollout to territories worldwide in 2004.

Mr Yang said: "The Motorola line of advanced display products is a natural extension of Motorola's leadership in digital entertainment and information solutions as well as an important element in Motorola's 'connected home' strategy, and carries Motorola's pledge of "intelligence everywhere'. We look forward to working closely with the Motorola team in providing consumers with intelligent products of the utmost Motorola quality."

PROVIEW has a strong distribution network and collaborates closely with world-class mass merchandisers and distributors in more than 50 countries across the globe. In addition to its globally accepted house brands, PROVIEW and EMC, the Group also holds licenses to manufacture and distribute display solutions under Motorola®, Xerox®, MAG® and Sylvania® brands and is commissioned to produce on an ODM basis for lenovo®, Fujitsu Siemens®, A-Open®, Acer® and other world leading brands.

The Group maintains a healthy geographical spread of business. During the year, turnover was generated with an even distribution between the Asia Pacific, European and North American markets, representing 23.57%, 29.5% and 41.3% of Group turnover respectively.

As of June 30, 2003, the Group had cash and bank balances of HK$483 million with total shareholders' equity standing at HK$691 million. Inventory and accounts receivable turnover days remained stable at 63 and 48 days respectively. During the year, the Group fully redeemed its US$20-million convertible bonds. Its financial gearing remained steady.

Financial Highlights

	Year ended June 30,
	2003	2002
	HK$ '000	HK$ '000
Turnover	6,945,251	4,633,000
Profit/(loss) from operations	183,768	(7,965)
Net profit/(loss) attributable to shareholders	109,575	(77,504)
Basic earning/(loss) per share	HK17.2 cents	HK12.2 cents
Final dividend per share	HK2.0 cents	Nil
Full-year dividend per share	HK3.7 cents	Nil

About PROVIEW International
PROVIEW International Holdings Limited (SEHK: 334) is a world top-five display devices producer owning globally recognized house brands including PROVIEW and EMC. The Group commands a global retail-sales and distribution network covering 50 countries with strong leverage of its world-class manufacturing facilities in China, Taiwan and Brazil. It has an annual production capacity of 10 million units of CRT monitors and 4.5 million LCD monitors. In October 2003, PROVIEW established a strategic alliance with Motorola, Inc. (NYSE: MOT) to connect the home with a new line of display solutions. For more information, please visit www.proviewintl.com.

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PROVIEW International Holdings Limited

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