Delta Group Opens New Plant in Slovakia

TAIPEI, Taiwan, May 4, 2007 – Delta Group officially opened its new factory in Slovakia at a grand opening ceremony held today in Dubnica nad Vahom. Honored guests included Mr. Boris Sopira, Director of Internal Policy Department, Dr. Pavol Sedlacek, Chairman of Trencin Region, Wu, Wen-yea, the Representative of Taipei Representative Office and Mr. Adisak Panupong, the Ambassador from Thailand. The ceremony featured speeches by the honored guests and Mr. Bruce Cheng, Chairman of Delta Electronics, which were followed by a tour of the new factory.

Delta's decision to establish a manufacturing plant in Slovakia was based on the company's strong commitment to better serve its European customers. As the geographical center of Europe, Slovakia is a strategic choice for Delta's production and logistics. Slovakia offers an improving business environment, a favorable taxation system, a highly qualified and motivated workforce, as well as a flexible labor market. In addition, many of Delta's global customers have an established presence there.

In his speech, Delta's Chairman Bruce Cheng expressed the vision that this new facility will become Delta's Eastern European headquarters, enabling Delta to better serve its customers in the region as well as supporting its further growth. Mr. Cheng also voiced his appreciation for the assistance the government of Slovakia has provided. "The government of Slovakia has worked hard to improve its investment climate and it is attracting the attention of many world-class enterprises," said Cheng. "This is our first major investment in Slovakia, and we look forward to achieving success. Our wish is to have a productive, competitive, and profitable enterprise that benefits everyone involved, while respecting our employees, the community, and the environment."

Delta's Slovakia plant is equipped with modern technology for the production of complex power supply products (rectifiers, inverters, and controllers) as well as complete power systems. These products empower telecommunication, information technology, industrial automation and medical as well as solar power applications with reliable and innovative solutions tailored to customers' needs. The new location provides enough reserve area to allow for further growth of Delta's business in Europe. The company plans to enhance the production scope to include further Delta products such as automotive products, fuel cell inverters, and components currently only produced in Asia. The central location of Slovakia and its strong automotive industry will also provide attractive new opportunities for Delta.

Delta invested over US$20 million in the new manufacturing plant and facilities, which will require 800 employees in its first phase of operation. This investment was supported by the Slovak Government, which granted tax incentives in the range of US$7 million. Construction of the new factory began in July 2006 and its first production line commenced operations in February 2007. In accordance with Delta Group's environmental awareness, which is manifested in its mission statement "to provide innovative energy-saving products for a better quality of life," the new building was designed with high environmental standards. Special focus was put on good thermal insulation of the walls and roof with a K-value lower than 0.19 W/m2K (the standard in Slovakia is above 0.30), the use of environmentally friendlier materials (e.g. rock wool/mineral wool), and the reuse of waste heat from production processes to heat the building.