SHENZHEN, China, Sept. 24 /Xinhua-PRNewswire-FirstCall/ -- Diguang International Development Co., Ltd. (OTC Bulletin Board: DGNG) (the "Company" or "Diguang") today announced that its subsidiary Shenzhen Diguang Electronics Co., Ltd. recently entered into an agreement with the Information Industry Department of Guangdong Province to research, develop and commercialize a new super-slim LED backlight.
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Under the agreement, the Company will receive specially allocated funds amounting to 5 million RMB supporting the research, development and industrialization of the new product. Funds will be provided in installments in 2008 and 2009. The new LED backlight will address the market for super-slim, large-size displays such as TVs. Its customers are expected to include LCD module makers and notebook and television display producers.
Government funds are being provided under a provincial program, "Financial Support Project for the Development of the Flat Panel Display Industry in Guangdong Province." This project is estimated to reach the short-run production stage by August, 2010.
Traditional TFT-LCDs are expected to be progressively replaced industry-wide by super-slim solutions with intelligent, energy-saving and environmentally friendly features. Compared to current large-size LED backlights, the new product being developed by Diguang will involve fewer components and simpler production techniques, yielding higher margins due to lowered production costs.
"In an initiative that we have intensified since the early part of this year, Diguang has been researching and engineering super-slim LED backlight solutions for multi-functional TFT-LCD models," commented Song Yi, Diguang International’s President and CEO. "We welcome the support of the Guangdong provincial government as we build optimal value and commercial potential into this new backlight, which will not only promote the development of LED backlight technology but also the entire display industry in Guangdong. We expect to file additional patents to secure the intellectual property we develop in bringing this project to commercialization."
About Diguang International Development Co., Ltd.
Diguang, through its subsidiaries, specializes in the research, development, production, sale and distribution of backlights and backlight technologies. A backlight is the typical light source of a liquid crystal display (LCD). The Company is focused on providing LED and CCFL backlights for international producers of televisions, monitors, cellular phones, digital cameras, DVDs and other home appliances. Diguang currently develops an average of approximately 50 new products per month. Diguang is a Nevada corporation with its manufacturing subsidiary located in Shenzhen, PRC, and its sales and marketing subsidiary located in the British Virgin Islands.
Safe Harbor Statements
This press release contains forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Diguang’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: results of the Company’s agreement with the Information Industry Department of Guangdong Province, general business conditions in the Company’s industry, business conditions in China, weather and natural disasters, changing interpretations of generally accepted accounting principles; outcomes of government reviews; inquiries and investigations and related litigation; continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Diguang is engaged; fluctuations in customer demand; management of rapid growth; intensity of competition from other providers of backlights and general lighting products; timing approval and market acceptance of new product introductions; general economic conditions; geopolitical events and regulatory changes, as well as other relevant risks, including but not limited to risks outlined in the Company’s periodic filings with the U.S. Securities and Exchange Commission. Diguang does not assume any obligation to update the information contained in this press release.
For more information, please contact:
Viola Tse, Investor Relations
Diguang International Development Co., Ltd.
Tel: +1-626-593-5486
Investor Relations Contact:
Sean Collins, Senior Partner
CCG Investor Relations
Tel: +1-310-477-9800 x202
Web: http://ccgir.com
