TCL Multimedia Achieves Operational Improvements and Wins Investor Backing

TCL Multimedia Achieves Operational Improvements and Wins Investor Backing

June 16th,2008

June 6th 2008, Hong Kong - TCL Multimedia Technology Holdings Limited (TCL Multimedia, HKSE: 01070) today announced that it will issue new shares in a private share placement for an aggregate amount of US$150 million. The new shares will be subscribed to by TCL Corporation and its affiliates, new investors, and a small number of senior employees of the Company. Following the proposed share placement, the shareholding of the parent company, TCL Corporation, and its affiliates will rise from the present 39.5% to over 50%. The remainder will be held by the public and independent shareholders.

The new investment funds indicate renewed confidence in the Group s prospects, following operational improvements and a streamlining of the Group s international businesses. On 29 April 2008, the Group announced its first quarter 2008 results, in which it earned a profit of HK$54 million (before the impact of the Convertible Bonds), and a 98% (year-on-year) rise in sales revenue of LCD TVs.

On 21 May 2008, the Group announced that the LCD TV sales volume for April 2008 had continued to expand rapidly, rising 215% year-on-year. The Group holds the #1 position in the PRC TV market by unit volume. Improvements in the efficiency of overseas operations should also enhance future prospects and generate funds for expansion.

The proceeds from the share release will be used for the early redemption of the Convertible Bonds issued by the Group in July 2007. The Bonds were originally due in 2012. Early redemption of the Bonds will help to eliminate the uncertainty created by the impact of fair value changes on the Group s financial results and, at the same time, strengthen the capital structure by increasing the capital base.

The early redemption of the Bonds, together with the conversion of a loan to equity, will reduce the Group s gearing ratio from 39% to 6%. In addition, the Group will save over HK$500 million in interest expenses that would have been incurred if the bonds were held until 2012. In this way, the Group will be in a better financial position to support its continuous expansion.

The issuing of new shares requires approval by the company s independent shareholders, as well as by the Hong Kong Stock Exchange and Securities and Futures Commission. The sale of these shares is expected to be completed in July 2008.

"The share release is a sign of renewed investor confidence in our future business prospects. The funds will help enhance our financial strength and further expand our share of the global LCD TV markets. We will continuously strive to create greater value for our shareholders," said Mr. Leong Yuewing, CEO and Executive Director of TCL Multimedia.