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Willas-Array Forms Joint Venture To Tap Growing Communications Industry In South Korea

 

FOR IMMEDIATE RELEASE

 

• New JV to distribute for top global telecom chip producer,  Conexant
• Aims to generate sales worth US$20 to US$35 million over the next 2 to 3 years

Singapore  -  4 March 2003  -  Willas-Array Electronics (Holdings) Limited ("Willas-Array"), one of the largest Hong Kong-based distributors of electronics components in the Asia Pacific region, today announced that it has been appointed by   Nasdaq-listed Conexant Systems, Inc. ("Conexant") to act as its distributor in South Korea.

 

To undertake this venture, a new joint venture company, Aries Tech Co. Ltd, has been formed with Willas-Array holding an equity stake of 90 per cent while its Korean partner, Mr Sung-Woo Kim the remaining 10 per cent.  Mr Kim is also a partner in Willas-Array's earlier joint venture in South Korea which was set up in May 2002. 

 

With this appointment, Willas-Array will become the first distributor for Conexant in South Korea. 

 

Conexant is a worldwide leader in semiconductor systems solutions for communications applications.  Established in 1999 as a spin-off from Rockwell International Corp., Conexant specializes in mixed-signal processing which are used in integrated systems and semiconductor products.  These semiconductor system and networking solutions are used in the communications industry such as set-top boxes, residential gateways, small business and consumer networking, PC data and fax modems and PC Video and Multimedia.

 

Korea represents one of the major growth areas for communications and communications-related industry, and is a leading country specialising in softwares and hardwares for set-top boxes.  In fact, according to the Electronic Industries Association of Korea (EIAK), domestic exports of set-top box exports would top US$700 million this year[1].

 

Through this joint venture, Willas-Array hopes to tap the growing communications industry in Korea, particularly in the set-top box segment, and achieve greater market penetration.  For a start, the new company aims to achieve a sales target of US$20 to US$35 million over the next 2 to 3 years.

 

"The new JV reaffirms Willas-Array's commitment to South Korea and is in line with our strategy to increase our market presence in the country since we first entered the market in May last year," said Mr Lawrence Leung, Executive Chairman of Willas-Array.  "We are clearly excited to represent Conexant as its distributor as this not only broadens our product range, but the strength of Conexant's semiconductor communications solutions will position us well to benefit from the anticipated growth in demand for these products in South Korea."

 

Willas-Array had, in May 2002, formed another 70%-owned joint venture in South Korea, to act as a distributor for STMicroelectronics Asia Pacific (Pte) Ltd.    

  

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About Willas-Array Electronics (Holdings) Limited

 

Established since the early 1980s, Hong Kong-based Willas-Array is principally engaged in the distribution of active and passive electronic components for use in the audio/video, telecommunications, industrial, consumer and computer segments. Backed by long-standing relationships with over 20 reputable Principals, Willas-Array carries a wide product mix distributing and marketing in excess of 10,000 product items which cater to over 2,000 active customers.  Its main markets are in Hong Kong and the PRC.

 

In the PRC, Willas-Array has established a network of representative offices strategically located in Beijing, Guangzhou, Shanghai, Shenzhen, Qingdao, Xiamen, as well as an Application and Development Division in Guangzhou. It hasa subsidiary in the Free Trade Zone within Shanghai that will serve as a logistics centre for the Group in China.  In South Korea, Willas-Array has a subsidiary which commenced operations in May 2002.