updated 10/27/2010 8:46:47 PM ET 2010-10-28T00:46:47

TAIPEI, Taiwan, ROC., October 28, 2010 (Taipei time) (GLOBE NEWSWIRE) – TPK Holding Co., Ltd. (TWSE:3673) ("We", "TPK" or "the Company") today reported unaudited revenues NT$17.2 billion for the third quarter of 2010 (3Q10), up 231% year-over-year and 64% sequentially. Net income for the quarter totaled NT$1.1billion, up from a net income of NT$718 million in 3Q09 and NT$1.1 billion in 2Q10. Diluted earnings per share for the quarter was NT$5.64, compared to diluted earnings per share of NT$5.56 for 2Q10.

For the first three quarters of 2010, net revenues totaled NT$32.8 billion, up 145% compared to the same period in 2009. Net income was NT$2.6 billion, increased 67% versus same period in 2009. Earnings per shares for the first three quarters of 2010 was NT$12.85.

3Q10 RESULTS HIGHLIGHTS

Revenues in 3Q10 grew by 64% sequentially, primarily due to increase in unit shipments and average selling price (ASP). Unit shipment of 3.5-inch touch modules increased by 30% compared with previous quarter.  ASP for 3.5-inch product was up by 55%, mainly due to increased volume of touch display of which our selling price includes the cost of procuring LCD screen.

Raw material cost totaled NT$13.1 billion in 3Q10, representing an increase of 87% sequentially, reflecting increased volume and higher percentage of our product containing the cost of LCD screen. Labor cost totaled NT$855 million during the quarter, representing 5% of total net revenues, compared with NT$614 million and 6% in the previous quarter. Depreciation and amortization expenses were NT$289 million for the quarter, up from NT$252 million in 2Q10 as a result of new capacity addition as well as the completion of our new factory.

Operating expenses were NT$1.1 billion, up from NT$888 million in the previous quarter. As a percentage of revenues, total operating expenses were 7%, down from 8% in the second quarter of 2010, reflecting improved efficiency due to economy of scale.

We recorded NT$32 million foreign exchange gain during the quarter as a result of appreciating RMB against United States Dollars. Net interest expense was NT$22 million.

CAPITAL RESOURCE AND LIQUIDITY

Capital expenditures for the quarter totaled NT$2.8 billion, of which NT$1.8 billion was for capital equipments and NT$1 billion for the construction of our new factory and other facilities. For the first three quarters of 2010, the Company has spent NT$6.8 billion in capital expenditures. As of September 30, 2010, TPK employed a total of 23,860 employees.

As of end of 3Q10, the Company had cash on hand of NT$2.8 billion.  Total bank debt was NT$7.3 billion, of which NT$5.8 billion was short term debt, and NT$1.5 billion belonged to long term. We had total banking facilities of NT$22.3 billion as of 09/30/2010, with unused credit line of NT$10.4 billion.

Total shares outstanding as of end of 3Q10 were 196,067,522 shares. After the capital injection through initial public offering on October 29th, 2010, total share counts will increase to 224,067,522 shares.

IR Contact:
Freddie Liu, Chief Financial Officer
Kevin Wang, Deputy Director
Tel: +886.2.5571.8869
ir@tpk-solutions.com

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ABOUT TPK

TPK was founded solely for touch solutions in 2003. We are the inventor of glass-based projected capacitive (P-Cap) touch solutions and the first company for mass production. TPK has currently five major product categories: 1) cover glass, 2) touch sensor, 3) touch module, 4) touch display, and 5) touch system. Glass-based P-Cap touch solutions are our main focus. We also have PET-film production since 2Q 2010. Our production sites are located in Xiamen City of Fujian Province, China. TPK is completely and vertically integrated for one-stop shopping for touch solutions.

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