TAIPEI, TAIWAN, May 18, 2007 – BenQ Corporation (“BenQ”) and Ability Enterprise Co., Ltd. (“Ability”), a Taiwan-based manufacturer of digital cameras, today announced that they have entered into an agreement for the acquisition of BenQ’s digital camera-related R&D and manufacturing facilities. The acquisition aims to strengthen ties between the two companies on future collaborations, while complementing both parties’ product offerings.

Ability has agreed to acquire BenQ’s digital camera-related assets, including manufacturing equipment and materials at the book value determined on June 30, 2007. Approximately 70 employees, mostly comprised of R&D personnel within the digital camera business unit, will be joining Ability starting on June 1, 2007.  The transactions are expected to close on June 30, 2007.

“Digital camera is one of our most important and profitable product lines,” said Sheaffer Lee, President of BenQ Corporation. “Ability will remain as one of our most important strategic suppliers for future BenQ branded digital cameras”

“We are pleased to strengthen our partnership with BenQ.” said Roger Tseng, President of Ability Enterprise Co., Ltd. “It marks an important milestone for Ability, for which it completes our portfolio and further elevate the overall competitiveness of our R&D and manufacturing capabilities.”