Seoul, Korea, June 21, 2001
hynix Semiconductor Inc. announced today that it has signed a letter of intent with Beijing Orient Electronics Group Co., Ltd. (BOE) and Cando Corporation to establish an international joint venture for its Thin Film Transistor Liquid Crystal Display (TFT LCD) business.
hynix will transfer its TFT LCD business to a joint venture to be formed by BOE, Cando and hynix. Subject to final negotiations and structuring, the contemplated transfer price for the business is up to USD 700 million, or not less than USD 400 million ~ 450 million. hynix will receive a combination of cash, minority equity interests in the joint venture, and other consideration. hynix expects that the cash portion that it will receive will be at least USD 350 million. The parties anticipate signing a definitive agreement by August, and closing the transaction by December 2001. The transaction is a part of hynix’s previously announced plan to divest assets outside of its core semiconductor business.
hynix’s TFT LCD business unit designs, develops and manufactures LCD screens used in Notebook PCs, high-end computer monitors and other applications. Beijing Orient Electronics Group Co., Ltd.(BOE), based in Beijing, is a computer monitor and display device manufacturer with A and B shares listed on Shenzen Stock Exchange. Cando Corporation, based in Taiwan, specializes in making color filters for TFT LCD displays. The letter of intent is non-binding and its terms are subject to revision by the parties, Salomon Smith Barney is acting as financial advisor to hynix.
About hynix Semiconductor Inc.
hynix Semiconductor Inc. (HSI) of Ichon, Korea, is an industry leader in the development, sales, marketing and distribution of high-quality semiconductors, including DRAM, SRAM, Flash memory and system IC devices. hynix Semiconductor is the world’s largest DRAM supplier with eleven semiconductor-manufacturing facilities worldwide, and production capacity of over 300,000 wafer starts per month. In addition, hynix is expanding its system IC business unit with leading technology and added deep-submicron foundry services to strategically broaden its overall semiconductor presence and achieve its goal of leading the global semiconductor market. Based in Korea, hynix maintains development, manufacturing, sales and marketing facilities strategically located worldwide.
### “These materials are not an offer for sale of the Securities in the United States. The Securities may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. hynix Semiconductor Inc. does not intend to register any portion of the offering in the United States or to conduct a public offering of Securities in the United States.” amended. hynix Semiconductor Inc. does not intend to register any portion of the offering in the United States or to conduct a public offering of Securities in the United States.”
