06.29.2001
Fire at Compal has little impact

• Development: Yesterday morning, a fire at Compal Commuciation (a subsidary of Compal) destroyed one of eight handset production lines. Insurance will cover the cost of damage which is estimated at NT$ 3m.

• Analysis: The fire was eliminated within an hour and will most likely cut sales of NT$ 10m for June. The disruption has no affect on notebook PC production.

• Primasia View: We believe operation results will improve in 2H01 versus 1H01, supported by increased shipments for NB PCs, PDAs and handsets.

IrmakSurenkok@Primasia.com +886-[0]2-2547-8873