COMPAL A Professional ODM/OEM Company

Compal Page: 2 Compal Europe Ltd (UK)

Compal Page: 3 Compal Europe Ltd Milestones 1999 Compal Europe Ltd established in Trafford Park Manchester, UK – Motherboard repair Started whole unit repair Moved office to Oakhill Trading Estate, Worsley, UK Support LCD (DBU) 2002 Acquired ISO9001:2000 in September Start LCD TV assembly Line 2004

Compal Page: 4 Organization Chart

Compal Page: 5 Customers

Compal Page: 6 Products Laptops Tablet PC PDA LCD TV & Monitors Portable Multi-media Products Mobile Phones Services Direct Sales Component level repair Modular level repair Product Assembly & Refurbishment Material Management & Support Product Technical Support Products & Services

Compal Page: 7 Compal Europe Ltd (UK) - Manchester 1.Unit 39, 40 : 25,000 ft2 (Year 2002) 2.Unit 38 : 8,000 ft2 x 2 (2 floors, Mar., 2004) 3. Unit 37 : 8,000 ft2 x 2 (2 floors, Oct., 2004) 4. A575 : 21,000 ft2 (Oct, 2004, for LCD TV) TOTAL Available Space : 78,000 ft2

Compal Page: 8 1. Current HP monthly q’ty : WUR : 4K pcs, (->8k) FRU : 6K pcs (->10k) MB : 1,800 pcs (->2k) Refurbish : 800 pcs (->1200) 2. Current Toshiba monthly q’ty : NB : MB 1,200 pcs (->2k) FRU : 1,600 pcs (->3,200) PDA : MB 400 pcs FRU : 250 pcs (->500) Capacity

Compal Page: 9 3. LCT TV : assembly for Compal Europe wide customers, capacity 20k pcs monthly for 17”. 4. DC Channel : total more than 20 customers NB : 450 pcs/M (->600), MB :100 pcs/M, and FRU 350 pcs/M. Capacity

Compal Page: 10 Human Resources

Compal Page: 11 Human Resources

Compal Page: 12 Human Resources

Compal Page: 13 Material Management Forecasting Process Forecast for three months Order for the first two months Third month is for vendor's buffer reference Calculating Factors: Install base - Sales Daily average use Fluctuation Delivery lead time from vendor Current inventory Current open order General lead time from TPE : 45 days

Compal Page: 14 Inventory Management Weekly inventory report, including general stock status report and slow moving reports Weekly FA reports, related to Part Use Reports Model Schedule (Compal Website) Synchronise with Monthly forecast The Inventory level review weekly Material Management

Compal Page: 15 Warehouse Management Material Requirement Planning - Inventory Stock Status, BOM Material Usage Planning - Third Parties Material Requirements Inventory Control Purchase Order Receipts & Inspection Discrepancy Storage Management Parts Service Management Physical Inventory Slow Moving & Idle Material Management Material Management

Compal Page: 16 Engineering & Quality Control Quality Management System Awarded ISO9001:2000 certification in September 2003 Continuous Improvement Plan Close-Loop Procedure (Problem Report Form) Controlled Documented Policies & Procedures - Capture best practice and accumulate knowledge to continually improve. All documents available on the Intranet. Internal Audits Execute corrective/preventive actions from the Audit findings Results - continued development/evolution of QMS Out Of Box Audit Perform OBA on repaired items before returning to customer/Stores

Compal Page: 17 ECO Process ECO data stored on Lotus Note Server (old system) ISPD – New web based system for downloading ECO data Check ISPD system for NEW ECO’s weekly Print-out ECO document & distribute to relevant departments Upload ECO data onto Intranet Engineering & Quality Control

Compal Page: 18 Engineering & Quality Control

Compal Page: 19 Engineering & Quality Control NPI Process New Product Information collection - Configuration of the Products sold to Customer - Sales & total install base forecast (RMA parts forecast) - Spare parts definition - spare parts for 1st shipment for product launch - Test Fixture - Diagnose & testing process/system - Training (for new products) - Information/documents - Contract ( Terms & Conditions) - Labelling and packaging requirement - Sample machine to for local service centre review

Compal Page: 20 ESD environment Follow ESD procedures as stated in the quality documentation - All ESD sensitive areas have warning signs/labels - All Worktops & benches have ESD mats and constant monitors - All operators log & check their wrist straps daily Engineering & Quality Control

Compal Page: 21 Repair Documentation Process A library containing repair history details (per make/model) Useful for new starters Direct communication/support with R&D and Manufacturing in Taiwan/China Repeat Repairs, TAT, NTF Process Implement Close Loop, Preventive and Corrective Procedures to: limit repeat repairs and NTF meet/improve TAT Engineering & Quality Control