PCChips USA, Elitegroup Computer Systems Merger, Creating a New Era in the PC Industry

Fremont CA - June 1, 2005 - PCChips USA, Inc., a leading worldwide motherboard and notebook manufacturer, today announced a merger with Elitegroup Computer Systems, Inc. (ECS), effective from June 1st, 2005. The merged company will continue operations under the name of Elitegroup Computer Systems, Inc. and will continue its focus on providing the computing marketplace with superior price/performance motherboard and notebook products.

The merger will serve as a strong catalyst to transform the landscape of the whole PC industry. By maximizing the combined strengths and operational excellence of both companies, the new entity will be able to deliver an unmatched portfolio of innovative motherboard and notebook products to the market.

The strategic decision of merging PCChips and Elitegroup will also create the one of the most-experienced leadership teams in the industry, fully capable of delivering superior value to customers and partners at each level. See See Lo, currently the President and CEO of PCChips USA, will become the President and CEO of the merged entity.

"As we carry two unique brands under one roof starting June 1, our customers will benefit from "The Power of 2": enjoying greater value and service delivered under the PCCHIPS brand, as well as cutting edge award winning technologies provided under the ECS brand.", said See See Lo.

About ECS

Elitegroup Computer Systems, Inc (ECS) is the world's leading manufacturer of motherboard and notebook products. Dedicated to driving the New PC Era, ECS has concentrated on delivering an unmatched portfolio of innovative PC Products to the market.

Founded in 1987, ECS is headquartered in Taiwan with operations in North America, Europe and the Pacific Rim. With intensive R&D;, and state-of-the-art manufacturing facility, ECS has been recognized as one of the industry quality leader. ECS R&D efforts are channelled towards user satisfaction while at the same time keeping customer profitability in mind. ECS's mission is to commit a win-win strategy of identifying and meeting the customers' needs, and sharing a mutual success with them.

Recently, ECS was selected for two consecutive years by BusinessWeek Magazine's exclusive Information Technology 100 list. In the "Computer and Peripherals" category, ECS was ranked the world's 12th and leading other Taiwanese-based motherboard manufacturers.

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