Leading Digital Camera Manufacturer Enters U.S. Market with Its Own Private Labeled Brand

January 16 2004--DXG USA, a business unit of Taiwan-based DXG Technology Corp. and the world's second largest digital camera manufacturer, today announced at CES 2004 its entry into the U.S. market for digital cameras and digital video cameras under its own private brand. With more than 3,000 employees and more than 1.5 million units manufactured in 2003, DXG is leveraging its strength in design and manufacturing to offer U.S. consumers a full spectrum of fashion camera products to meet the varying price needs for mid to late mainstream adoption. DXG's camera portfolio will contain a mix of 2 to 4 megapixel cameras ranging in price from $100 to $300.

"The U.S. digital camera market is ready to explode over the next several years," said Jackson Yu, President of DXG Technology Corp. "For the first time in history, sales of digital cameras are expected to surpass those of film cameras in 2003 and one of the hottest growth categories is the sub $300 fashion camera. Ultimately in this category, consumers will make their decisions based on the camera's aesthetics as a fashion accessory. This is an area we excel from our years of experience in designing and manufacturing cameras for many of the world's leading name brands including Hitachi, Vivitar and others."

According to the Consumer Electronics Association, 28 percent of U.S. households already own a digital camera. This number is expected to grow significantly over the next several years as prices continue to drop and as consumers look to replace film cameras. DXG expects its business strategy of fashionable design and price to appeal to both retailers and consumers as it looks to make a significant impact in the sub $300 market with compact, highly portable, full featured cameras.

DXG's first line of branded cameras includes the DXG-228, DXG-308, DXG-321, and DXG-328. Immediately available, the cameras use stylish designs with 2 or 3 megapixel CMOS sensors, 1.5-inch TFT displays, 4x digital zoom, 16 megabyte built-in memory, SD and MMC memory card expansion, AVI video, USB interface and replaceable alkaline batteries. In addition, the DXG-202V is available as a compact 2 megapixel CMOS digital video camera.

At CES, DXG is also pre-announcing its next line of digital cameras and digital video cameras which will be available in late Q1 and Q2 2004.
•    DVC301 – a miniaturized 3.2 megapixel CCD plus MPEG-4 digital video camera
•    DSC329 & DSC 332 – second generation 3 megapixel CMOS cameras in two slim designs
•    DSC402 – compact 4.1 megapixel digital camera with 2.5-inch Panasonic CCD and 3x optical zoom
•    DSC303 – compact 3 megapixel CMOS digital camera with MPEG-4 video, voice recording and MP3 player
•    DSC305 – compact 3 megapixel CMOS digital camera with AVI video, voice recording and MP3 player

All cameras come with a seven language menu system and are bundled with an ArcSoftฎ software suite, camera pouch, alkaline batteries, USB and TV output cables, and user's manual.

Availability and Pricing
The DXG-228 ($99), DXG-308 ($99), DXG-321 ($119), DXG-328 ($129) and DXG-202V ($119) are now available for purchase through Fry's Electronics, Fry's Outpost.com and MicroCenter.

About DXG USA
As the world's second largest manufacturer and designer (OEM/ODM) of digital cameras and camcorders, DXG has more than 20 years experience producing digital technology products for other "big name" brands. Starting in the watch business, the company has successfully leveraged its manufacturing experience and capitalized on new business opportunities in a variety of new market sectors, including consumer electronics and digital cameras. Now fully vertically integrated to handle all aspects of the manufacturing and design process from industrial design; mechanical, electrical and software engineering; product molding; plastic injection; assembly and manufacturing; quality assurance; and final packaging, DXG is poised to exploit this strength into a respected and well received U.S. consumer brand.





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