ASUS and Gigabyte Form Strategic Alliance

ASUS and Gigabyte Form Strategic Alliance

Taipei, Taiwan, 9th August 2006: ASUSTek Computer Inc. and Gigabyte Technology today announced their strategic alliance with the establishment of a joint-venture that will produce Gigabyte branded motherboards and graphics cards.

The new company will have an initial capital of NT$8 billion, with 51% of the company being controlled by Gigabyte and 49% by ASUS. The new subsidiary is expected to be fully operational in January of 2007. Under the agreement, the chairman of the joint venture will be appointed by Gigabyte, as well as three directors and one supervisor on the board of directors of the new company. The remaining two seats on the company’s board will be assigned by Asustek.

The marriage of two of the world’s largest motherboard and graphics card makers is expected to increase their competitiveness in many different fronts, especially in leveraging both companies’ economies of scale, research and development, and diverse product lines to achieve greater synergy.

About ASUSTeK Computer Inc.

ASUSTeK Computer Inc. is a leading provider of 3C total solutions. Its product portfolio includes notebooks, motherboards, graphics cards, optical drives, information appliances, desktop PCs, servers, wireless solutions, mobile phones and networking devices. With world-class engineering and offices and subsidiaries located in all corners of the world, ASUSTeK provides innovative solutions to consumers, businesses and OEM/ODM customers, and has won 1706 awards in 2005, with recognition in design excellence in the form of the prestigious iF Gold Award. It ranks among the players in Business Week InfoTech for the 8th straight year. The company is the perennial leader of the motherboard and graphics card industries and a top 4 maker globally for notebooks.