Hong Chuan Completes Tender Offer for Primax Electronics

Hong Chuan Completes Tender Offer for Primax Electronics

September 17, 2007

    TAIPEI, Sept. 17 /Xinhua-PRNewswire/ -- FAT Capital
announced today that Hong Chuan Investment Co., Ltd., a
company wholly owned by a private equity consortium led by
FAT Capital, has successfully completed its tender offer to
acquire computer peripherals maker Primax Electronics Ltd.
(TWN Ticker: 2336). Primax is one of the top two contract
manufacturers of PC mice.

    At closing on September 7, the consortium led by FAT
Capital acquired approximately 70% of the issued and
outstanding shares of Primax. The deal, valued at roughly
US$265 million, is the first completed private equity
buyout of a Taiwan-listed firm which is not controlled by
management shareholders.

    "This buyout is a milestone for private equity in
Taiwan," said Stephen Tsuei, FAT Capital's founder and
chairman. "It's also a milestone for Primax, which will
now have the flexibility to pursue the merger and
acquisition (M&A) activity that's essential to its
growth in the crowded contract electronics sector."

    The other partners in Hong Chuan Investment are private
equity firms H&Q Asia-Pacific and Merrill Lynch. Yuanta
Core Pacific Securities served as tender offer agent, and
Taipei Fubon Commercial Bank was the lead mandated arranger
for acquisition financing.

    The tender office price, NT$18 per share, represents a
26.1% premium over Primax's average share price for the
last year.

    Primax, based in Taipei, is a leading global supplier
in consumer and business electronics. It's a top player in
the booming market for "multi-function
peripherals" such as all-in-one
printers/scanners/copiers. "This will give us the
freedom to chart a bolder course for future growth,"
said Primax chairman Mr. Raymond Liang. "We're
grateful for Stephen Tsuei's leadership in putting together
a strong investment team and successfully completing the
deal, and for the key support of H&Q Asia
Pacific." After the buyout, Primax' management are
expected to remain in place, and no major staffing changes
are expected.

    About FAT Capital 

    FAT Capital is a private equity firm led by seasoned
management with extensive business experience in Greater
China. FAT Capital was founded in May 1997 by Mr. Stephen
Tsuei, who is its current chairman. Mr. Tsuei is the vice
chairman of Yageo Corporation, global leader in passive
component sector, as well as the former Chairman and CEO of
Far Eastern Air Transport Corporation (TWN Ticker: 5506) and
Ezfly.com Corporation. Mr. Tsuei also serves on the board of
directors of a number of listed companies. He has more than
17 years of experience in the investment management
business. 


    For more information, please contact:

     FAT Capital: 
     Jack Chiang
     Tel:   [phone]
     HK M:  [phone] 
     CN M:  [phone] 
     TW M:  [phone]
     Email: [e-mail]

     Primax: 
     Jerry Chang     
     Tel:   [phone]
     Email: [e-mail]