Fremont, CA (August 1, 2006) — Elitegroup Computer Systems, Inc. (ECS®, TSE: 2331), the world’s leading desktop PCs, notebooks, servers, motherboards, video cards, wireless solutions and handheld devices manufacturer, announced it has inked an agreement to acquire Uniwill Computer, Taiwan’s leading manufacturer of ultra-portable notebook solutions. This acquisition will allow customers of both companies to deploy a wide range of compelling notebook and white book products to the marketplace immediately. This is the second consecutive acquisition made by ECS Elitegroup after the recent acquisition of the desktop PC unit of Tatung earlier this year.

Under the terms of the agreement, ECS Elitegroup will acquire Uniwill Computer in an all-stock swap where two shares of Uniwill Computer will be swapped for one share of ECS Elitegroup. The expected completion date of the acquisition is December 1, 2006 where ECS Elitegroup will issue 184,930,000 new shares at a share price of NT$19.05 to complete the deal, as detailed in the statement filed with the Taiwan Stock Exchange. The acquisition will integrate and streamline manufacturing capabilities of the companies’ notebook, desktop PC and motherboard lines to allow for expanded output capacities.