IDWK International Displayworks

International DisplayWorks, Inc. (IDW) (NASDAQ:IDWK) today announced that it has formed a long-term strategic alliance with Taiwan-based Integrated Solutions Technology, Inc. (IST). Through this alliance, IDW and IST will collaborate and share resources to create a portfolio of products aimed at optimizing cost-performance liquid crystal module (LCM) solutions for the small- to medium-sized liquid crystal display (LCD) panel market. Specifically, in the near term, IDW has agreed to increase the utilization of existing IST driver integrated circuits (ICs) embedded in IDW's liquid crystal modules. IDW and IST will engage in the joint development and improvement of the most competitive LCMs for applications in electronic appliances, industrial instruments, medical equipment, desk-top and cellular phone displays, toys and games, portable video products and other applications. This strategic alliance represents the initial steps toward executing a vertical integration strategy for IDW, and the joint development between IDW and IST is expected to result in cost savings for IDW over the next six months. Over the long term, management anticipates developing a series of products aimed at optimizing cost-performance of LCMs in the markets served by IDW. Dr. Steve Su, Chairman of IST, commented, "Partnering with IDW on the development of LCM solutions is an ideal blending of our respective expertise, and will help both companies to increase market share, access new opportunities and drive margin improvements. Aligning our Companies with the product development efforts of our customers earlier in the product lifecycle will significantly enhance our collective value proposition, further differentiating both IST and IDW in the marketplace." To lead the Company's vertical integration strategy, the Company has appointed Sherif Sweha as its Chief Technology Officer. Mr. Sweha's career includes more than 20 years with Intel in silicon design and engineering management. Mr. Sweha recently served as the Director of Design Engineering in the Flash Memory Group for Intel Corporation in Folsom, California, where he was responsible for all design engineering aspects of a $2 billion FLASH memory division including Product Architecture, Chip Design, Design Automation, Software Development, Technology Interface, and Investigation of Alternative Non-Volatile Memory technologies. Mr. Sweha managed more than 400 employees in four countries and he founded Intel's first IC Design teams in the Philippines and China. Jeff Winzeler, the Company's Chief Operating Officer, commented, "We recognize the importance of vertical integration as a key component to IDW's ongoing growth strategy. By actively participating in the design of the integrated circuits used in our displays, we will drive additional value to our customers in both functionality and cost effectiveness. IDW is fortunate to be able to appoint someone of Sherif's caliber to lead this effort. Sherif has over 23 years of experience in the integrated circuit industry and brings a wealth of technical experience to the newly created CTO position. In addition to his technical talents, Sherif has developed, built and managed high performing, global organizations during his career. He is the perfect candidate to lead this aspect of our organization and further strengthens our senior management team." Mr. Sweha added, "The strategic alliance with IST is a milestone for International DisplayWorks and our overall vertical integration strategy. Our collective efforts for LCM development will serve to drive both product differentiation and margin enhancements. IDW has built a solid reputation for exceptional quality with the lowest price points in the industry. Additionally, the Company has established an exceptional technical capability, and I look forward to leveraging that capability to enhance our value proposition by aligning our design and manufacturing capabilities with our customers' development efforts." About International DisplayWorks International DisplayWorks, Inc. is a manufacturer and designer of high quality liquid crystal displays, modules and assemblies for a variety of customer needs including OEM applications. IDW operates 466,000 square feet of manufacturing facilities in the People's Republic of China (PRC). Sales offices are located in the U.S., Europe, Hong Kong, Singapore, and China. Copies of IDW's 10-K and other documents as filed with the SEC are available through a link on our web site: www.idwk.com. About Integrated Solutions Technology Integrated Solutions Technology, Inc., headquartered in Taipei, Taiwan, specializes in design, development and marketing of driver integrated circuits and display solutions for small and medium size LCD modules in various types of handheld electronic equipment applications. For more information, visit www.ist4u.com. NOTE: The foregoing is news relating to International DisplayWorks, Inc. ("IDW") and contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. When used in this release, the words "anticipate," "believe," "estimate," "expect" and similar expressions as they relate to IDW or its management, including without limitation, IDW and its subsidiaries, are intended to identify such forward-looking statements. IDW's actual results, performance or achievements could differ materially from the results expressed in, or implied by these forward-looking statements, including anticipated cost savings from early design involvement, customer acceptance of redesigned IC drivers and LCM modules, and similar risks associated with a vertical integration strategic alliance. For more detailed information the reader is referred to IDW's 10-K and other related documents filed with the Securities and Exchange Commission. This does not constitute an offer to buy or sell securities by the Company and is meant purely for informational purposes.