***Sony's F Series to be Produced by Asustek

After the expiration of Sony's OEM agreement with Quanta, Asustek
has shipped an initial 5,000 to 6,000 notebooks for Sony's
approval. Once approved Asustek will increase its monthly
production to 200,000 notebooks. Currently, Asustek is launching
a full-scale notebook production expansion in China. In Taiwan,
Asustek has the capability to manufacture and distribute complete
models, but its facilities in China are still below Sony's
standards. Asustek hopes to transport finished products to
clients directly from China when it completes its manufacturing
and distribution network in China.

As of January 2001, notebook makers in Taiwan, like Quanta, have
shipped 140,000 units, Compal 100,000, Acer 80,000 and Asustek
20,000 notebooks.

Wave Issue 0109 2/15/01 Article 3-02