TAOYUAN, TAIWAN, October 24, 2006 － BenQ's board of directors convened today to approve its results for the first nine months of 2006. For the third quarter of 2006, the company's core business recorded sales of NT$ 40.7 billion, excluding sales attributable to its BenQ Mobile German subsidiary.  For the first nine months of 2006, the company's core business recorded sales of NT$ 153.5 billion and NT$19.7 billion in net loss.  The board also approved resolutions pertaining to disposal of assets.  In specific, the board approved the sale of BenQ's Jiandong plant and associated land in Gueishan Industrial Park to Daxon Technology Inc.; additionally, the board also authorized future disposal of the shares that BenQ holds in Gallant Precision Machining Co., Ltd.

BenQ's board of directors resolved on September 28, 2006, to discontinue capital injection into the company's BenQ Mobile German subsidiary.  Its German subsidiary – BenQ Mobile GmbH & Co OHG – subsequently filed for insolvency protection as a result.  "Each of the subsidiaries impacted by the filing will evaluate their financial condition and determine whether they should also file for insolvency protection. We believe the decision to seek insolvency protection on the part of our mobile-handset subsidiaries should have a limited impact on BenQ's non-handset operations," according to Eric Ky Yu, BenQ's Senior Vice President of Finance and Spokesperson.

In connection with making provisions associated with potential asset impairment, "in keeping with conservative accounting principles we have made a one-off provision of NT$11.8 billion, including receivables due from the company's BenQ Mobile German subsidiary.  Our priority will be to rebuild sales channels and boost customer confidence," Mr. Yu continued.  With no more funding commitment into the company's BenQ Mobile German subsidiary, "we are looking to lower the company's debt level over the next few quarters by implementing a proactive debt-repayment plan," according to Mr. Yu.  "With the debt-reduction plan that we're implementing, including monetization of non-core long-term investments and assets, I am confident we will quickly improve financial ratios, strengthen balance sheet, lower interest expense, and free up additional cash for further growth,” added Mr. Yu.