Lite-On IT gibt ODD Business NICHT auf!

(Auszug aus der Pressemitteilung)

27. Oktober 2006, Eindhoven, The Netherlands – Lite-On IT has communicated

today that yesterday’s news article announcing Lite-On IT exiting the
consumer ODD business with its own brand on DigiTimes, has lead to an
unfortunate misinterpretation of facts.

Being the world’s 2nd largest ODD manufacturer, Lite-On IT will definitely
not stop ODD products, DVD- and CD burners. The news release on DigiTimes
will only affect the company’s standalone DVD recorders product line.

Mister Tony An, Lite-On IT’s Director of the DVD recorder Business Unit, has
made an official statement explaining the decision:

„We have to admit that retailer business is a big contributor to a negative
profit of the DVD recorder Business Unit in Lite-On IT Corp, especially in
USA market. That is why we need to have a serious review on the current
business model with each customer in different region. For any unhealthy
business, in fact no matter it is Lite-On brand or private label/ODM
business, Lite-On IT has to discontinue the projects or lead them to a
profitable & healthy direction.

Under the above principal, Lite-ON IT has to reselect and rebuild the
customer structure. As a top 5 worldwide DVD recorder manufacturer, ODM/OEM
business will be still Lite-On’s core business. However, we will
continuously support the selected Lite-On brand distributors or retailers if
their business model has been proved to be healthy and profitable in the
past few years.

Mister Tony An continues his statement by clarifying that Lite-On IT will
continue their current commitment to the market and its customers and that
the decision will not have any impact on Lite-On IT’s ODD business.

„There is no any impact on the projects which Lite-On has committed to
deliver in Q4, 2006. All royalty and RMA liability will be still carried on
without hesitation according to the original agreed business term and

The above business strategy’s change has nothing to do with the ODD
business. Therefore, the ODD products will follow up the original promotion
plan to co-work with the current distributors or retailer channels as