July, 2004 FULL PRESENTATION Marketing New Proprietary Color Technology From Tianma: TIANMA MICROELECTRONICS CO., LTD

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics SFD -Super Fast Display is the fastest moving image color display technology, with vivid pictures and low power consumption. Superior over existing CSTN technology, SFD offers high data-reaction rates suitable for displaying full- motion video and extraordinary clear image equivalent to TFT LCD. The power consumption is just as low as regular CSTN LCD. Displays clear images and full motion video Over 20fps frame rate High data-reaction rates without after-image High contrast, low image flicker Low power consumption and competitive price, SFD is the best solution to substitute TFT LCD Feature Highlights Applications: mobile phone, media player, automotive display, digital home appliance, etc. Tianma – Features of new product

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics 1.1 Market situation of color display industry  Advantages in low cost and low power consumption  Long response time, not suitable to play fast moving picture  Cannot meet the marked requirements for cameras, video games, video recorders CSTN CSTN and TFT LCD Occupied the color display market  With higher display speed and better picture to meet the top consumers' requirements  Higher power consumption is not suitable for portable appliances  Long R&D and lead time cannot support its customer in fast- changing market  Higher price goes beyond the customers expectation TFT LCD 1. PLACE OF TIANMA’s SFD AMONG CSTN and TFT DISPLAYS

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics 1.2 The launch of Tianma SFD Fly Dragon series of color display module Innovation over existing CSTN LCD, SFD has high data-reaction rates and extraordinary clear image. Meet the following requirements  colors clear, high quality display  Fast moving images playing up to 30ftps/frame  Movie and video playing, clear images without afterimage  Equipped with a phenomenal million pixel digital CMOS camera, SFD will be easy to find a moving view and catch vivid images.  The power consumption is just as low as regular CSTN LCD, meets the requirement for portable appliance  Low production cost

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics Brightness comparison SFD/TFT Color Comparison SFD/TFT Regular CSTN Movie play Regular CSTN

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics 1.3 Advantages to TFT LCD Power consumption comparison  Lower power consumption  Lower production cost  Lower tooling charge  Shorter lead time Material cost rate of Mobile phone

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics 1.4 Significance of SFD Meet the market requirements for color display with fast response and moving picture playing function Meet the needs of customers' to face the fast-changing consumption market Bring new competitive advantages to customers Provide the attractive products to end customers SFD's introduction is a huge step forward for the whole LCD industry

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics 2.1 Application of SFD The application range of SFD will be wider because of its fast moving image and perfect display quality. It may be used in : Mobile Phone Media Player （ DVD ， VCD ， MP3 ） Automotive display Digital home appliance Security apparatus 2. The great market for SFD

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics 2.2 Market forecast of SFD  Great demand increased from 2003 for mobile phones, digital home appliances and portable players etc.  The sales of LCD modules and other electronic parts increase sharply  Market demand increase due to international electronic industry transfer to China  20% increase forecast for China electronics market in 2004 Market Forecast for small/medium LCD (Unit : US$b)

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics  For mobile phone market, 250 million units be sold in 2003, and the amount will increase in 2004  Based on data, 2.5G and 3G mobile phone has edged out 2G mobile  Color display, digital camera, digital video recorders and video game consoles now have become must-haves for mobile phone. 多功能手 机需求图 Multi-functions mobiles varies in marketCamera phone increases dramatically

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics Multi-media and smart mobile phones will be the main trend in the market and enrich end-users’ life and knowledge Others like automotive display, MP3, portable TV and computer will require high quality and fast response LCD to catch the development The outstanding playing quality and low cost will no doubt have a great market perspective

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics SFD Flying Dragon series 3. SFD series

Do not copy or distribute. Copyright ⓒ 2004 Tianma Microelectronics SUPER FAST DISPLAY Tianma - SFD Tianma Microelectronics Continuous development of new products Digital camera SFD 1.0" SFD 1.9", 2.2" QCIF SFD Tianma will continuously develop SFD series to support the market