Letter To Shareholders - Mitac

MiTAC has dedicated R&D resources to developing associated technologies
and products.
C. Mobile communications products
a. Portable Navigation Device: We invented the thinnest PND in the world. It has a
camera, Wi-Fi, Bluetooth and GPS functions and uses Microsoft operating
platforms so its interfaces are more user-friendly and practical.
b. Smart phone navigation software: MiTAC is developing high-end, GPS enabled
smart phones capable of mobile communication, image capturing, multimedia,
and wireless Internet connectivity. It is shifting its software development focus
towards cell phone navigation which provides higher profit margins.
D. Enterprise and channel server workstation products
a. High-end server platform: MiTAC adopts the latest upstream and downstream
technologies to its production of multiple high-end server motherboards and
barebone systems in line with the latest market trends, customers' demand, as
well as its commitment to innovation. Combined with virtual technology and
other technologies offered by software providers, MiTAC is widely acclaimed
and acknowledged for its broad varieties of high-performance and high C/P
platforms. As soon as Intel announced its 32 nm, six-core Intel® Xeon® 5600
processor series in mid-March 2010, and as soon as AMD announced its latest
12-core AMD Opteron 6000 processor series at the end of March, the company
immediately launched products that accommodate these radical improvements
in the hope of offering customers the most advanced selection.
b. GPU Supporting Server: apart from C/P ratios, server room space is also
becoming an important consideration. In contrast to conventional servers, GPU
supporting servers are designed to save space; by packing multiple server
functionalities into a smaller server with GPU support, this solution greatly
satisfies customers' restraint on space and expectations toward
high-performance. To complement NVIDIA’s GPU promotion efforts in 2009,
the company took the initiative to introduce a series of GPU supporting servers
that delivered high quality as well as high-performance for its customers. From
high performance computing to data centers, the company offers multiple
GPU-supportive products that effectively save server room space and reduce
customers' server room maintenance costs.
In the future, the company will continue to strive from its customer centric
value and relentlessly innovate in line with market trends and customers'
demand; researching and developing broader varieties of GPU supporting
server barebond systems to maintain its market leader status in server supplies.
c. Cloud computing barebone servers: IDC's research report dated December 2009
indicated that the market potential for cloud computing is valued as high as
USD 2.4 billion worldwide, with the potential to increase to USD 8.1 billion by
year 2010. The foundation of cloud computing, which involves a massive
database center that is remotely accessible (cloud) and users' ultra portable
electronic devices (client). Users connect to the Internet using their handheld
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