NTEEP Announces 2007 Q1 Results

Q1 Sales up 55%, Net profit up 61%

HONG KONG, April 30 /Xinhua-PRNewswire/ -- Nam Tai Electronic and Electrical Products Limited ("NTEEP" or "the Company") (Stock code: 2633), a leading vertically-integrated manufacturing solutions provider of consumer electronics and communications products and software development, today announced the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the first quarter ended 31 March 2007.

During the quarter ended March 31, 2007, the Group recorded sales of approximately US$54.6 million, representing an increase of about 55%, which was mainly due to the increase in sales of mobile phone accessories. As a result of the Group's competitive pricing policy and external factors such as increasing costs of raw materials and labour costs, gross profit margin dropped by about 3% to 16% as compared with the same period last year. The decrease in gross profit margin was compensated by an increase in sales and a deferred tax credit of approximately US$0.7 million and as a result, operating income and net profit increased by about 44% and 61% to approximately US$5.5 million and approximately US$6.5 million in the first quarter of 2007 as compared with the same period last year. Had there not been such a deferred tax credit of approximately US$0.7 million, net profit would have been approximately US$5.8 million, representing an increase of about 43% only, as compared with the same period last year.

Ms. Sit Fung Ying, Connie, CFO of NTEEP, said, "The Group believes that the overall market conditions faced by the Group will remain to be challenging. Mobile phone accessories and home entertainment devices will be the core focus of the Group in 2007. The Group will continue to expand business opportunities by looking for new customers and increasing the product range, and to control costs and expenses as well so as to achieve better financial results."

About NTEEP

Nam Tai Electronic & Electrical Products Limited ("NTEEP"), a subsidiary of Nam Tai Electronics, Inc. which is listed on the New York Stock Exchange, is a well-established vertically integrated manufacturing solutions provider for some of the world's most reputable brand owners of consumer electronics and communications products including optical devices, home entertainment devices, mobile phone accessories and educational products. NTEEP is also a total solution provider offering a wide range of services on software development, data processing and compression and electronic hardware design and development specializing in digital dictionary and navigation system. NTEEP's largest customers include Sony Ericsson Mobile Communications AB, Texas Instruments Incorporated, Sony Computer Entertainment Europe Ltd. and GN Netcom A/S.

Nam Tai Electronics, Inc. ("NTE") (New York Stock Exchange symbol: NTE) is an electronics design and manufacturing service provider to many of the world's leading original equipment manufacturers, including Hikari Alphax Co., Ltd., GN Netcom, Sanyo Epson Imaging Devices (H.K.) Ltd., Sharp Corporation, Sony Computer Entertainment Europe Ltd., Sony Ericsson Mobile Communications AB, Sumitronics Hong Kong Ltd., Texas Instruments Incorporated, Uniden HK Ltd. It manufactures high-quality telecommunications products, palm-sized PCs, personal digital assistants, linguistic products, calculators and components such as LCD modules, wireless communication terminals and their modules, and CMOS sensor modules.

For more information about NTEEP, please visit its website at www.namtaieep.com . For more information about NTE, please visit its website at www.namtai.com .

Nam Tai Electronic & Electrical Products Limited

2007 Q1 Results Key Highlights

(In thousands of US Dollars, except as otherwise stated)

Quarterly Results

Q1 2007 Q1 2006 YoY (%)

Sales (Revenue) 54,561 35,170 55.1

Gross Profit 8,900 6,830 30.3

% of sales 16.3% 19.4%

Operating Income 5,498 3,814 44.2

% of sales 10.1% 10.8%

Per share (US cent) 0.62 0.43 44.2

Profit after tax(b) 6,471 4,027 60.7

% of sales 11.9% 11.5% --

Basic earnings per share (US cent) 0.73 0.46 58.7

Diluted earnings per share

(US cent) 0.73 0.46 58.7

Weighted average number of

shares ('000)

Basic (a) 881,671 881,671 -- Diluted (a) 881,671 881,671 --

Notes:

(a) Excluded outstanding share options of 14,520,000 which had not been

exercised as at 31 March 2007 (as at 31 December 2006: 14,720,000).

(b) Deferred tax credit of US$0.7 million arose as a result of the

expected changes in PRC tax law effective January 2008 and beyond.

For more information, please contact:

Wong Long Kee

Tel: +852-2263-1065

Fax: +852-2263-1223

Email: lkwong@namtai.com.hk