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Letter To Shareholders - Mitac

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volume in the world in 2009. Especially, the Asia-Pacific region has already<br />

outnumbered Japan, with mainland Chinese being the No 1 supplier in the Asia-Pacific<br />

region. Therefore, for long-term business development, we plan to explore potential<br />

markets, like China and Asia-Pacific region. As for product strategy, diversified<br />

products in all age groups remain the focus of our development. MiTAC had gained<br />

our R&D capability from all of the ODM digital production and we will expand our<br />

market from the existing American & European markets to the global ones and to<br />

develop more leading- edge products. Besides, we are working on making alliances<br />

with digital services providers in order to open a new audio-video market.<br />

2. Enterprise products<br />

(1)For short-term business plans: Our strategy is to maintain and cooperate with existing<br />

clients at workstations and various types of servers and storages devices in order to<br />

expand our customer base and increase revenues.<br />

(2)For long-term business plans: In the next three years, we will continue the<br />

development and sales for storage devices and servers. On the other hand, we seek<br />

long-term and stable cooperation with clients in the whole food chain, from entry-level<br />

to high-end solutions, single product line and multiple ones. We want to strengthen our<br />

product development capability and speed, product quality and delivery control. Our<br />

aim is to reinforce our role as a major server ODM supplier.<br />

3. Mobile communication product series<br />

(1) Mobile communication products<br />

A. For short-term business plans: We closely observe market and user’s feedback in<br />

order to design the most competitive mobile communications products. We use our<br />

product planning, development, design and production capabilities to provide our<br />

customers high-value services. We will also give clients cheap mapping and points of<br />

interest in order to open different markets.<br />

B. For long-term business plans: We will utilize global distribution, sales models and<br />

service networks to work closely with partners and vendors. MiTAC SYNNEX<br />

Group will be the global channel with highly integrated product planning and<br />

high-value-added products, thus to expand the foundation of major international<br />

client base and to develop a varsity of clients.<br />

(2) Handheld devices<br />

A. Short-term business plan: PND shall remain as the world's most popular navigation<br />

solution in the next few years; MiTAC shall continue its development of competitive<br />

PND products based on market demand, while offering customers high value added<br />

services through innovation and professional product planning, research,<br />

development, design and manufacturing capabilities.<br />

B. Long-term business plan: develop products that are horizontally integrated to the<br />

core GPS navigation technology; e.g. vehicle navigation systems, outdoor navigation,<br />

and cloud computing-based vehicle fleet administration products in association with<br />

communication service providers. Extend client interaction with world renowned<br />

manufacturers and broaden customer variety with highly integrated product planning<br />

and the introduction of high value adding products.<br />

4. Enterprise, channel server/ workstation products:<br />

(1)Short-term business plan: analyze market trends, adopt the latest upstream and<br />

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