The Lite-On IT Corporation will acquire 49% of Philips & BenQ Digital Storage Corporation from BenQ Corporationof Taiwan. PBDS, a joint venture company of Royal Philips Electronics and BenQ, will be renamed as Philips Lite-On Digital Solutions Corporation (PLDS).

The operations of PLDS will include Design, Development, Sales and Marketing of Digital IT Optical Disc Drive products. Lite-On IT will maintain full responsibility for the manufacturing process. For the European market, the new acquisition means that all operations currently handled by Lite-On IT BV based in Eindhoven will be continued under the new joint venture PLDS.

The new company will continue to provide existing and new channel partners superior Lite-On branded optical disc products and support in the same way in which the previously named Lite-On IT carried out operations. With the new PLDS joint venture between Lite-On IT and Philips, Lite-On IT solidifies its global leadership position in the manufacturing and sales of optical storage products.

The alliance is expected to complete during the first quarter of 2007, subject to the normal regulatory approvals and conditions.

Story filed 06.02.07