com. Neural Surround is supported by the major brands
in the home theater and automotive electronics industry and is expected to be
available in more than 50% of surround receivers starting spring of 2006.

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Neural is the developer of Neural Surround(TM), a proprietary audio format
that embeds the rich envelopment and discrete image detail of surround sound
in a format 100% compatible with stereo.

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("Nam Tai") (or the "Company"), the New York Stock Exchange
listed electronics manufacturing services provider , announced that it has
increased the production capacity of its Chip on Film ("COF") by 40% in a
further expansion to its flexible printed circuit ("FPC") sub-assemblies
business.
Nam Tai has two Hong Kong listed subsidiaries, Nam Tai Electronic +
Electrical Products Limited ("NTEEP ") and J.I.C.
Neural Audio Corporation is a privately owned company headquartered in
Kirkland, Wash.

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") (HKEX Stock Code: 987) and Nam Tai Electronic +
Electrical Products Limited ("NTEEP") (HKEX Stock Code:2633)--Nam Tai
Electronics, Inc. Interested investors may go to the website of The Stock Exchange
of Hong Kong at http://www. The stock
code of NTEEP and J.I. only
represent a part of the results of the Company and there are GAAP differences
in the financial statements of NTEEP and J.

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Technology
Company Limited ("J. This process allows for greater compression of the
size of a product when assembled, thereby enabling the production and
miniaturization of small form factor devices like cellular phones, PDAs,
digital cameras and notebook PCs. Its parent
company, Pioneer Corporation, is a leader in optical disc technology and a
preeminent manufacturer of high-performance audio, video and computer
equipment for the home, car and business markets.

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C. For more information , visit http://www.

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I."

About Pioneer Home Entertainment
Pioneer's Home Entertainment Division is a leading marketer of plasma
televisions and monitors, DVD players and DVD recorders , A/V receivers, CD
players and CD recorders, speakers and other audio and video accessories.

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Taking into account the new
machines, the production capacity of Nam Tai's COF has increased from
2,500 ,000 chips per month to 3,500,000 chips per month.C.1 encoded surround sound for music is a natural progression for
multi-channel home audio entertainment.

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"

About Nam Tai Electronics, Inc.hkex. Investors are reminded to exercise caution when assessing
such information and not to deal with the shares of the Company based solely
on reliance of such information. The results of NTEEP and J. Its
focus is on the development of new digital technologies including Digital
Network Entertainment(TM).neuralsurround .

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jic-group., and
its U.

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HONG KONG, March 1 /Xinhua-PRNewswire/ - The parent of J.I.hk

is headquartered in Long Beach, Calif. Web address is http://www.

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Now it has outgrown its current production capacity.C.").
"True 5. There is no doubt that music artists will be
inspired by the creative opportunities this exciting new technology brings.
"This is about setting the bar at a new level for audio entertainment, and
we are excited to partner with a leader like Pioneer to support the largest
source of 5.

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C.C., when compared with the
financial statements of the Company. The company markets its products under the Pioneer
and Pioneer Elite brand names.

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We also manufacture finished products, including cellular phones, palm-sized
PCs, personal digital assistants, electronic dictionaries , calculators and
digital camera accessories for use with cellular phones. For more
information of NTEI, NTEEP and J. In addition, Pioneer will announce support for Neural Surround at
the 2006 WCES show with plans to expand the implementation of Neural Surround
to a full line of home A/V receivers . When purchased from an authorized dealer,
consumers receive a limited warranty for one year with Pioneer products and
two years with Pioneer Elite products.

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Through our electronics manufacturing services operations, we
manufacture electronic components and subassemblies, including LCD panels, LCD
modules, radio frequency modules, flexible printed circuit sub-assemblies and
image sensors.

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I.
In response to a strong market demand and increasing customer orders for
FPC sub -assemblies, Nam Tai has invested $2. Technology Company Limited
("J.com.C. LAS VEGAS, Pioneer Electronics, a leading consumer
electronics manufacturer, announced today it plans to implement a breakthrough
audio technology, Neural Surround(TM), across its home and automotive product
lines .
Pioneer is introducing the new VSX-816, a Neural Surround enabled home
receiver, which supports XM HD Surround broadcast and is set to retail for
$299 at CES.com .

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I. Furthermore, different subsidiaries of
the Company may have different peak season during a year.com .
Pioneer Electronics (USA ) Inc.

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"Less than two years after it began manufacturing FPC sub-assemblies, Nam
Tai has increased its production capacity for FPC sub-assemblies several
times.C., please visit their websites:
http: //www. Thanks to XM Satellite Radio's
partnership with Neural Audio, we now have high performance and easy access to
a whole new world of music.pioneerelectronics.

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on The Stock Exchange of Hong Kong are the 2633 and
987 respectively. "Music encoded in Neural Surround will enrich
the listening experience with full envelopment and discrete image detail that
are non-existent in traditional stereo audio.

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We are an electronics manufacturing and design services provider to
original equipment manufacturers of telecommunications and consumer electronic
products.hk to obtain the information .

Pioneer and Neural Audio Announce Breakthrough Technology That Will Increase Consumer Access to Surround Music

1 original music content of any medium today," said Geir R.

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2 million for 4 additional COF
machines to augment its existing 10 COF machines. These components are used in numerous electronic products ,
including cellular phones, laptop computers, digital cameras, copiers, fax
machines, electronic toys, handheld video game devices and microwave ovens.I.
Skaaden, CEO of Neural Audio.
Chosen by XM Satellite radio as the format for their 24/7 XM HD Surround
programming, Neural Surround will introduce the excitement of surround music
to a broad American audience.

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I.S. The company focuses on four
core business domains including DVD, display technologies, Digital Network
Entertainment and components.

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com .

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COF is an assembly method for bonding integrated circuit chips and other
components onto a FPC. The strong
demand for FPC sub-assemblies is driven by the rapid growing market of more
sophisticated electronic products such as 3G cellular phones and other
infotainment products that generally include more complex features and
functionality," said Mr. Joseph Li, Chief Executive Officer of Nam Tai.
"Taking advantages of the continuously increasing applications of FPC sub-
assemblies, we believe that we will continue to benefit from the large
business opportunities arising in this area. We
think consumers are really going to love the experience," said Dave Bales ,
marketing + planning manager of audio products for the home entertainment
division of Pioneer Electronics (USA).

About Neural Audio
Neural Audio Corporation is an audio development company specializing in
digital signal processing solutions for broadcast and consumer electronics .

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NAM TAI ELECTRONICS INC. Enhances COF Production Capacity for Increasing Orders of FPC Sub-assemblies

For more information, please contact:

Joyce Lam/ Marcus Keung
Tel: +852-2263 1014/2263 1022
Mobile: +852-9378 1695/9704 8864
Fax: +852-2263 1223
Email: marcus@namtai.

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- - kjjkjk

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