ACL Semiconductor Publishes Letter to Shareholders

HONG KONG, April 24, 2012 /PRNewswire-Asia/ -- ACL Semiconductors Inc. (OTC Bulletin Board: ACLO) ("ACL"), the China-based distributor of semiconductor products in Southern China and Hong Kong, has issued the following letter to shareholders from the Chairman of the Board and CEO, Mr. Chung-Lun Yang.

Dear Shareholders,

ACL continues to aggressively seek opportunities in the Asian market to broaden the ACL business model with higher margins, innovative products and an expansion of our geographic footprint. We believe the three recently proposed transactions fit within this strategy and offer excellent vehicles to position ACL for the future. We are diversifying our platform and will no longer predominantly be a distributor business with a major focus on one brand. We are developing into a diversified, more vertically integrated company; spanning manufacturing, design, and distribution. Our strong presence across mainland China, combined with a state-of-the-art electronic components distribution platform, will better position the Company to withstand the industry pressures that we experienced in 2011. I will briefly outline the three transactions and the strategic opportunities they present for ACL:

• ATMD Joint Venture with Tomen Devices Corporation: We view this joint venture with Tomen Devices Corporation ("Tomen") as truly transformative for ACL and its Samsung business. In line with Samsung's strategy to streamline its distribution network, the joint venture combines Tomen's strong financial position with ACL's Atlantic client base and team into one entity known as ATMD, which we believe is poised to become a leading Samsung distributor across Greater China. The joint venture optimizes the Samsung semiconductor position in the Greater China market and creates a full product supply chain business model. By combining forces, ATMD will offer a broad portfolio of Samsung semiconductor products, which includes Tomen's higher margin products, addressing the rapidly expanding smartphone, storage devices, tablets, and notebooks manufactured in China. ACL will retain a 30% interest in this joint venture, which was launched on April 1, 2012.
• USmart Electronic Products Limited Acquisition Underway: We entered into a non-binding memorandum of understanding to acquire Jussey Investments Limited, the majority shareholder of USmart Electronic Products Limited ("USmart"), on March 30, 2012. USmart specializes in the manufacture and distribution of computer peripherals, premium smartphones, high-end tablets, flash storage, communication devices and consumer electronics appliances. We believe USmart is poised to bring to ACL relationships with world renowned brands and long term sourcing partnerships. USmart's focus is on advanced technology from a design, manufacturing and distribution standpoint. The addition will broaden ACL's business across the three "C" markets -- computers, consumer electronics and communication technologies. This pending acquisition will diversify ACL's business beyond distribution and increase our exposure to the rapidly growing Asian smartphone market. We are progressing well with the closing of this transaction and expect it to close by June 2012.
• Systematic Semiconductor Limited Acquisition Pending: On February 13, 2012, we entered into a non-binding memorandum of understanding to acquire Systematic Semiconductor Limited ("Systematic"), which is a successful trader and procurement network specialist of memory products. Systematic specializes in memory components with over thirty categories and 350 subcategories in the space. Systematic's broad product portfolio and flexibility in its relationships with a broad spectrum of branded manufacturers, wholesales/distributors and retailers results in excellent margins. With the addition of Systematic, ACL will be further integrated into the supply chain and diversify its business towards the consumer platform across China and Hong Kong. We expect this transaction to close by the end of May 2012.

In closing, these transactions exemplify our strategic objective to strengthen and diversify our semiconductor product platform for 2012 and beyond. We remain optimistic about the overall market prospects as we believe the semiconductor market is on track to resume growth by the second half of 2012. The enterprise spending cycle will continue to expand throughout 2012, and the launch of Microsoft Windows 8 for tablets and ultrabooks is expected to drive demand for computing platforms. Smartphone penetration should accelerate with the growth of lower-cost devices in emerging markets such as China, India and Southeast Asia. Datacenter and storage is projected to grow in order to support cloud-based applications, and anticipated growth in data traffic will drive more investments in networking and computing infrastructure. According to the research manager at IDC, double-digit growth is projected for consumer devices such as media tablets and eReaders in 2012.

We deeply appreciate your faith in our ability to make 2012 a year of transformation and growth.

Yours sincerely,
Mr. Chung-Lun Yang
Chairman of the Board and Chief Executive Officer

About ACL Semiconductors Inc.

In 2011, ACL Semiconductors Inc. distributed electronic components under the "Samsung" brand name to the Hong Kong and South China markets. The semiconductor products are used in everything from mobile phones, digital cameras and laptop computers to MP3 players and Wi-Fi products. Starting April 1, 2012, ACL is distributing the Samsung semiconductor products through ATMD, a newly established joint venture with Tomen Devices. For more information about ACL Semiconductors Inc. please visit ACL Semiconductors' corporate website at http://www.acl-semicon.com.

Forward-Looking Statements

This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings.

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