SOURCE: Sysview Technology, Inc.

January 03, 2007 10:45 ET

Sysview Announces Volume Manufacturing of LCOS Engines in China

SAN JOSE, CA -- (MARKET WIRE) -- January 3, 2007 -- Sysview Technology, Inc. (OTCBB: SYVT), a leading provider of imaging solutions, announced today that it has signed a formal Letter of Intent (LOI) with the Wuhan /Hubei Province Investment Group (WIG). Under this agreement the group will invest $40 million to $60 million to establish volume manufacturing of Sysview's proprietary LCOS engines in the rapidly growing Wuhan Optical Valley in Hubei Province, China.

The joint venture, to be called Wuhan-Sysview Optronics Corporation, Ltd., will be owned 51% and 49% by WIG and Sysview, respectively. Sysview will contribute a license to its proprietary engine technology bundled with its Nano-LCOS Imager, production strategy and expertise, as well as management to institute mass production. The investment will also fund the completion of the manufacturing design and tooling of the engine by Sysview's San Jose-based development team, which will also consult in the design of the manufacturing facility and equipment.

The new plant will be located at Wuhan East Lake Hi-Tech Development Zone and is expected to come online in late 2007. Completed engines are expected to be sold to TV manufacturers worldwide, as well as to Sysview for specialty system-level products, to meet the growing demand for HDTV technologies.

Sysview Technology CEO Darwin Hu said, "Wuhan is the cradle of the optoelectronics and telecommunications industry in China." Mr. Hu continued, "Known as the Optical Valley of China, the area is recognized for its abundant high tech expertise garnered from surrounding universities, institutes and growing industry. Upon completion of the formal agreement, we look forward to announcing the definitive terms of and strategic value that we expect from the joint venture."

Until the new plant is established, we expect pilot manufacturing will be performed in Korea. This pilot line is expected to be funded with a phase-one WIG investment of $2 million.

The joint venture agreement, expected to be formally signed after the Consumer Electronic Show (CES) in Las Vegas, Nevada, January 8-11th, is the culmination of a process that included presentations at Sysview's San Jose offices in September as well as in October of 2006 at the China International Display Conference and an exhibit at the China International Hi-Tech Fair Flat Panel Display Expo in Shenzhen. Also, in November 2006, Mr. Hu addressed the Fifth Optics Valley of China International Optoelectronic Forum, while the company exhibited at the concurrent Optics Valley of China International Optoelectronic Expo.

Sysview sees volume manufacturing in China as the logical next step in ensuring that it can meet future demand for its technology. Furthermore, its supply will be strategically located in what is expected to be the world's second largest market for large screen HDTVs.

About Sysview Technology, Inc.

Sysview Technology, Inc. (OTCBB: SYVT), headquartered in San Jose, Calif., designs and manufactures imaging solutions for OEM customers worldwide. The company currently manufactures over 21 proprietary imaging products and has become the largest global private-label manufacturer of USB-powered mobile scanners. The Company's growing intellectual property portfolio in imaging includes 19 patents with an additional 5 patents pending.

Leveraging its experience in imaging technology and manufacturing, Sysview has acquired and continues to develop new technologies targeting the HDTV display market. Products that include its proprietary Nano-LCOS Imager and Next Wave Optical Engine are expected to reach the worldwide market in 2007. The Company is also advancing its RGB Sequential LED Backlighting technology for LCD panels. These solutions will significantly enhance picture quality, decrease power consumption, and enhance the viewing experience, while reducing the cost of large screen HDTVs.

Note on Forward-Looking Statements

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond the Company's control that could cause actual events and results to differ materially from these statements. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. Sysview undertakes no obligation to update publicly any forward-looking statements.

Contact Information

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