Ethernet technology is the core to Accton's focus. Since then, we have combined IP and wireless technology over the past few years to create a product aspect with wide-angle development. Accton is successful in NIC, Switch, Wireless LAN and broadband market, establishing our position internationally. Because of our flexible product structure and technology strengths in producing high-margin products such as high-end backbone switches, our Original Design Manufacturing (ODM) business is highly regarded by large international corporations.

Accton succeeds thanks to multiple competitive advantages - both its technological advantages and business advantages driven by the company's philosophies. The company's central philosophy, "Making Partnership Work" is its chief advantage. Accton develops and nurtures long-term relationships with its partners by working collaboratively to build the products that the partners and their customers want. ISO 9001, ISO 14000 and TL9000 standards-compliance helps assure partners of the quality inside the products, and user-friendly 24/7 on-line technical support makes critical resources always available.

Accton's success translates to success for its customers. The company's low-cost manufacturing, hardware design and manufacturing and total hardware/software solutions help Accton's partner clients pursue new market opportunities faster and more economically. Providing high-quality products and services for its OEM/ODM clients, Accton expedites time-to-market with start-to-finish projects completed to ship new products in as little as three months.

Accton's continuous growth can be credited to its core technology and successful integration of the Accton group. In order to better control costs and enhance functionality and market competitiveness, Accton made key investments in ADMtek Incorporated, which develops application specific integrated circuits (ASIC), and also acquired Eumitcom Corporation in 2001 to further diversify our wireless LAN product lines.

In 2003, Accton and Royal Philips Electronics (Philips) entered into a joint venture aimed at serving the growing wireless market. The new company, Arcadyan, merges the wireless connectivity activities of Philips and Accton into a single entity that will develop advanced cost effective consumer wireless solutions incorporating Accton's expertise in low cost wireless networking design and manufacturing with Philips' multimedia and wireless technology and expertise. The new company will provide complete solutions for a range of wireless networking applications, including multimedia-ready home networking capabilities.

Accton has also invested in over 70 companies, either as the primary shareholder or a supportive minority shareholder, is involved in hundreds of strategic alliances and licensing arrangements, and is a preferred customer for a range of key component vendors. All of these partnerships contribute to our competitive advantage in sourcing the components and expertise that our customers need.

In the China market, Accton formed a joint venture with SVA Group China in 2002 to establish SVA Accton Co. SVA Accton Co serves as a bridge into the telecommunication equipment market and an R&D center for developing backbone network devices, such as VDSL, L2 and L3 switches and wireless LAN products. With the advantage of SVA Group China's existing distribution channels, Accton is now expanding full-force into the China market.