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Syntax-Brillian, China South Industries Group Sign Agreement to Produce LCoS Light Engine In China (15/4/2006)

Syntax-Brillian Corporation (Nasdaq:BRLC), a manufacturer and marketer of LCD and LCoS(TM) HDTVs and digital entertainment products, and China South Industries Group Corporation ('China South'), a state-owned enterprise directly under the administration of China's Central Government, signed a strategic partnership formalizing the creation of a joint venture company in China for the manufacture of LCoS(TM) based light engines.

The signing ceremony was attended by top central and local government and top management executives from Syntax-Brillian and China South.

The joint venture company, called Sino-Brillian Display Technology Corporation, is to assemble and sell LCoS(TM) based light engines to TV manufacturers initially in China and eventually to the rest of the world. The partnership will combine Syntax-Brillian's expertise in LCoS technology with China South's best optical components, positioning the joint venture company as a global LCoS light engine leader.

"This partnership further deepens the technology collaboration between our two countries. It will hasten the advent of HDTV LCoS in China, providing one of the largest markets in the world better digital TV and entertainment experience," said Vincent F. Sollitto, Jr., Syntax-Brillian's Chairman and Chief Executive Officer.

Sino-Brillian Display Technology Corporation will use Syntax-Brillian's proprietary LCoS(TM) Imagers exclusively in the light engines to be manufactured by the joint venture. Several local TV makers have already expressed interest in adopting LCoS(TM) based light engines, with the first China-made LCoS HDTV expected to be available in the market by end of the year.

"There are 340 million households in China who want HDTV. With this joint venture China South will be able to provide the single best HDTV technology, LCoS(TM), at an affordable price to many of these homes," stated Mr. Nie Xiao Fu, Vice Chairman, China South.

Industry data shows that HDTVs account for 35% of China's TV market in 2005 with sales volume reaching to 1.6 million units, or 180% higher compared with the previous year. It is also projected that cable HDTV users in China will reach 3 million in 2008 as a result of the Beijing Olympics.

The joint venture company is expected to start limited production of LCoS light engines by May 31, 2006 with commencement of volume production in July 2006. The targeted production volume of the joint venture is 300,000 light engines annually.

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