10.24.2001
Optimistic on growing CD-R market

• Ritek is positive toward the CD-R market in coming years. Global demand for CD-R is expected to rise 40% YoY in 2002. After 11 Sept., demand for back-up media like CD-R actually increased. Anti-dumping measures may be adopted later by EU to force small players to exit the market, reducing margin pressure on CD-R products. As the leading CD-R producer, we believe Ritek is a prime beneficiary of pick up in storage media sector, given strong bargaining power and economies of scale. We are also positive toward firm’s other product lines like optical components.