Tech Pro Technology Announces Proposed Acquisition of a LED Lighting Business Company for HK$138 Million

Production Chain Integration of LED Light Business Achieving Synergy Effects

HONG KONG, Aug. 24, 2011 /PRNewswire-Asia/ -- Tech Pro Technology Development Limited ("Tech Pro Technology"or the "Group"; HKEx stock code: 3823),a major manufacturer and distributor of aluminum electrolytic capacitors in the PRC, announced the possible acquisition of 60% of the issued shares of Pacific King Technology Limited ("Pacific King"), at an aggregate consideration of HK$138 million.

Pacific King is wholly and beneficially owned by Supreme Creation Limited, while the subsidiary of Pacific King, Shenzhen Chong Zheng Electronic Company Limited^#, is principally engaged in LED lighting business, including wholesale, import and export of printed circuit board ("PCB") for LED lightings, including aluminum-base PCB, copper-base PCB, electronic products and LED lightings in the PRC. Pacific King intends to extend its major business activities to manufacturing, assembling of PCB products and LED lightings in the PRC. In the acquisition, Tech Pro Technology will obtain a profit guarantee of no less than RMB20 million (equivalent to approximately HK$24.39 million) for the 12 months since the date of completion of the acquisition. Pursuant to the Agreement, the consideration of the acquisition will be satisfied by cash payment, issue of Promissory Notes and Consideration Shares.

Tech Pro Technology serves as a key role in producing and selling various kinds of aluminum electrolytic capacitors in the PRC. Recently, the Group has been actively looking for new business opportunity with high growth potential. Pacific King is principally engaged in the aluminum-base PCB and copper-base PCB business, which are the major components of LED lighting products. The Group believes that the acquisition can integrate both the upstream and downstream LED lighting business, and benefit the Group with a synergy effects.

Mr. Li Wing Sang, Chairman of Tech Pro Technology, said, "The global demand on LED products is expected to keep on increasing, the Group is confident about the future prospect of the LED industry and its associated products. The Group has already acquired factories for manufacturing and assembling of LED lighting products. With the experience and strength of Pacific King in PCB electronic products, the acquisition can benefit the existing LED lighting business of the Group, and can further enhance the integration capability of production chain of LED lighting business. The Group expected to diversify its revenue stream into this new line of business with significant growth potential, and thus increase our shareholders' value."

^# English transliteration of Chinese terms for identification purpose only

About Tech Pro Technology Development Limited

Tech Pro Technology is principally engaged in the manufacture and sale of aluminum electrolytic capacitors. Under its "Chang" brand, Tech Pro Technology produces a range of aluminum electrolytic capacitor products and diversified combinations. In order to meet the needs of customer, the Group has a total of 64 models of aluminum electrolytic capacitor products, comprising lead wire type capacitors, lug type capacitors, screw type capacitors and V-chip type aluminum capacitors. The Group's main customers include many reputable corporations, and its extensive sales network includes reliable domestic clients such as Taiwan, Hong Kong, as well as customers from overseas markets such as Turkey, Korea, Italy, and Russia.

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