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Contents - MiTAC

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C.Wireless Communications Products<br />

(a) Wireless communications and networking products: Through strategic alliances<br />

and investments, developed Bluetooth and IEEE 802.11b/IEEE 802.11a/IEEE<br />

802.11g,a wireless communications computer interface cards and PDAs.<br />

(b) PDA: Formed an alliance with Intel and Microsoft, using Intel's newest<br />

generation of microprocessors together with Microsoft's Pocket PC 2003<br />

operating system in developing the world's lightest and most compact Pocket<br />

PC product. Launched PDA products integrating digital photography<br />

capabilities, WiFi connectivity, Bluetooth connectivity, and GPS navigation<br />

capabilities ahead of rivals.<br />

(c) Mobile telecommunications modules: To meet demand for products with voice<br />

and data communications capabilities, exploited the advantages of a<br />

world-class mobile telecommunications components vendor to develop 2.5-G<br />

GSM/GPRS and CDMA 1X-RTT mobile telecommunications modules.<br />

(d) Handheld smart terminals: Allied with Intel and Microsoft, combining PDA<br />

technology and mobile communications module technology to develop a<br />

hybrid product with both PDA functionality and mobile connectivity. Also<br />

introduced a smart terminal product with integrated digital photography<br />

capabilities, multimedia functionality, and wireless networking.<br />

(e) Communications software products: While meeting the requirements of mobile<br />

communications devices, developed video camera, phone book, MMS, Java,<br />

and J2ME MIDP applications, as well as software to enhance the friendliness<br />

of the interface, such as a world clock and call alerts with photographs for use<br />

in spurring sales of handheld smart teminal products.<br />

1.4 Long- and short-term business development plans:<br />

1.4.1 Desktop computer product series<br />

The US, Europe and Japan are the world's major PC markets. <strong>MiTAC</strong>'s business<br />

has been concentrated in these markets in the past, and in the future, it will continue to<br />

develop even further OEM/ODM business in these markets. In 2003, shipments in the<br />

Asia-Pacific region grew at the highest rates in the world, and total shipments for this<br />

region surpassed those for the Japanese market, with the China market being the largest<br />

single national market. Therefore, in terms of a long-term business plan, market<br />

development efforts will center on the Asia-Pacific region and China.<br />

1.4.2. Server product series<br />

In terms of product strategy, <strong>MiTAC</strong> will continue its joint development and<br />

manufacturing efforts with existing Unix customers, as well as repair services, for<br />

workstations and various types of servers. In addition it will devote manpower to the<br />

development of a complete lnieup of Intel architecture single-processor and<br />

dual-processor servers in order to expand its customer base and revenues. The three<br />

major drivers for business growth in this area over the next three years will be: (1)<br />

continued development and sales of rack mount and pedestal servers, (2) development<br />

of next-generation blade servers, and (3) development of network storage equipment.<br />

Business strategies will focus on expanding cooperation with major server<br />

customers, in areas ranging from module shipments to shipments of complete systems,<br />

from entry-level to high-end, from cooperation on a single product line to cooperation<br />

on multiple product lines. We will seek stable long-term cooperative relationships,<br />

conntuing to strengthen our product development capabilities and speed, improve<br />

production quality and control over delivery times, raise the level of integration of our<br />

global supply chain, enhance our global logistics service network, and solidify <strong>MiTAC</strong>'s<br />

position as a major server system OEM/ODM vendor.<br />

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