The acquisition agreement, still subject to shareholder approval, was approved by HTC’s Board of Directors on May 8, 2007, values the assets of Dopod International’s subsidiaries at the sum of Dopod International’s adjusted net worth at the end of second quarter of 2007, certified by CPA as of June 30, 2007. The transfer of all assets will become effective on July 1, 2007.  HTC estimates that the sum will not exceed USD $14.5 million dollars.  The combined marketing, sales, and service capabilities of both companies will strengthen HTC’s position within the Asian market, providing consumers in the region with a comprehensive range of mobile devices and services.  To maximize the synergies of the acquisition and to implement new joint business initiatives, Dopod International’s entire workforce will be expected to join HTC. Dopod International’s vast, accumulated experience in the retail market will benefit HTC as HTC expands its brand presence in the future.

HTC Announces Global Branding Strategy

After the acquisition, HTC will unify the products under a single global brand.  In the future, all of HTC’s new products will be marketed under the HTC brand.  However, Dopod International’s current on-the-market products will still be sold under the Dopod International’s brand name.  Furthermore, to provide first-class service to existing Dopod International’s customers, HTC will offer after-sales support to consumers who purchased products before the acquisition.

HTC will start to launch “HTC” brand products in Asia. Furthermore, HTC is committed to providing a full range of support services to existing Dopod International products and Dopod International consumers through original distribution channels and service/call centers.

Dopod International has been accumulated rich sales and marketing experiences in Asia market and it do provide great advantages on HTC brand management in future. By leveraging HTC’s sales and marketing experiences in Europe and the United States to the Asian market, the acquisition will reinforce HTC’s position as the world’s leading provider of smart handheld devices.

“Well-performing brands enjoy strong awareness amongst consumers, so it is extremely important for HTC to enhance brand recognition by communicating a consistent global brand image,” said Peter Chou, chief executive officer of HTC. “In the future, HTC will provide consumers with consistent global marketing services under the ‘HTC’ brand name. This comprehensive global marketing strategy will build up real, long-term brand value for HTC and will boost the company's overall competitiveness.”

“Dopod International has been the leading PDA Phone and smartphone distributor in Asia since its inception in 2004. By joining forces, Dopod International and HTC can now work together on business development and brand marketing throughout Asia, allowing consumers to choose from a comprehensive range of products and services,” said Jack Tong, chief executive officer of Dopod International.
 
 
 

Since its establishment, HTC has developed strong R&D capabilities, pioneered many new designs and product innovations, and launched state-of-the-art PDA Phones and Smartphones for mobile operators and distributors in Europe, the US, and Asia. These machines are available as HTC devices and as products individually customized for operator and device partners.

HTC is one of the fastest growing companies in the mobile device market. The company is listed on the Taiwan Stock Exchange under ticker 2498. For more information about HTC, please visit www.htc.com <http://www.htc.com/>