HTC to acquire the rest of Dopod

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May 18, 2007

Taiwan-based Windows Mobile phone maker HTC has signed an agreement to purchase the assets of nine Dopod International subsidiaries located throughout Asia. The deal, which is part of a strategy to launch HTC-branded products throughout Asia, follows HTC's acquisition of a 50 percent stake in Dopod last June.

"In the future, HTC will provide consumers with consistent global marketing services under the 'HTC' brand name." said Peter Chou, HTC's CEO. Dopod's entire workforce, reported to be around 115, will join HTC, bringing HTC's workforce to an estimated 5,000, according to sources.

Following HTC's initial investment in Dopod last year, Dopod became a subsidiary of HTC. Shortly thereafter, HTC announced its first two self-branded Windows Mobile devices, the MteoR Smartphone and TyTN Pocket PC. Then, in September, HTC revealed a set of four new Windows Mobile 5.0 handhelds to be offered under both HTC's own brand and in customized operator-specific versions.

Dopod products currently on the market will continue to be sold under the Dopod name, and the company will continue support customers who purchased Dopod products prior to the acquisition, HTC said.

Prior to its investment in Dopod last year, HTC had primarily operated behind the scenes as an ODM (original design manufacturer), building devices for wireless carriers such as T-Mobile and Verizon, and for OEMs (original equipment manufacturers) like Hewlett-Packard and Dell. The company is widely thought to be the ODM source of some 80 percent of the world's Windows Mobile smartphones and PDA/phones.

According to Dopod CEO Jack Tong, HTC "has been the leading PDA Phone and smartphone distributor in Asia since its inception in 2004. By joining forces, Dopod International and HTC can now work together on business development and brand marketing throughout Asia, allowing consumers to choose from a comprehensive range of products and services."

The deal, valued at approximately $14.5 million, is still subject to HTC shareholder approval.

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