BenQ Reports Net Profit of NT$783 Million, EPS NT$0.32 for First Half of 2005

TAOYUAN, TAIWAN. August 18, 2005 － BenQ's board of directors convened today to approve its results for the first six months of 2005. BenQ recorded NT$783 million in net income and an EPS of NT$0.32 per share. Profit before tax was NT$584 million. The board also approved a proposed issuance of up to 30 million units of Global Depositary Receipts. In addition, the board also approved a US$10 million investment in a China-based BenQ subsidiary.

According to Sheaffer Lee, BenQ's Chief Operation Officer, "in the second quarter, sales declined to NT$ 29.67 billion as a result of stepped up price competition in a few product lines. Gross margins declined because of changing product mix with greater weighting in lower margin products.

Looking ahead to third quarter, Mr. Lee continued, "We expect shipment of LCD monitors to trend up quarter over quarter with ASP strengthening. Other PC peripheral products should also see seasonal growth. In Digital Media, projectors should grow driven by new product introductions—with wireless and high–lumens models a key driver. Revenue should grow and ASP should strengthen. We believe LCD TV should be better positioned with introduction of industry-leading 37” and 46” models equipped with BenQ’s Senseye^®TM technology. We see mobile handset business to stay flat quarter-over-quarter. Overall revenue should grow 10% or better."

“I am pleased to report that integration planning with Siemens Mobile Devices is on track,” added Mr. Lee. “We have implemented a retention program with key personnel. Additionally, a steering committee overseeing integration has been formed and workshop sessions ensuring a smooth transition are in progress. In terms of organization, regional heads have already been appointed and country managers for the most part have already been appointed as well. Both sides are busy at work finalizing a joint product roadmap.”