Taipei, Taiwan, July 25, 2007 - ASUS (Ticker:2357) and Ability Co.("AbiCo") (Ticker:2374) have, on 24th July 2007, respectively held their board meetings to approve the strategic alliance of the two companies. ASUS will issue new shares in exchange for the existing shares owned by Ability Investment (AbiCo's major shareholder.) ASUS is expected to own 13% of AbiCo after the share swap. The two companies mutually agree to support ASUS to obtain AbiCo's board seats in order to achieve the goal of strategic alliance. ASUS is a worldwide leading manufacturer in PC motherboard, graphic card, and notebook while AbiCo is a top three DSC OEM/ODM maker in Taiwan. The two companies have complementary core competences in terms of product lines, customers and markets. Through the share swap and by leveraging their respective core competence, the two companies expect to expand their manufacturing scale, customer base, and move into new product lines in an attempt to enhance their shareholders' value.

The share swap is expected to close on 13th September 2007, after both companies have ex-dividends. One ASUS share will be exchanged for 1.71 AbiCo shares. The swap ratio was negotiated based on the two companies' recent historical share prices, expected profitability, and net worth, and has taken into account the stock, cash dividends and employee bonus shares from both sides.

Impressed by AbiCo's strength in DSC manufacturing, R&D and sales, ASUS, through the strategic alliance, will extend its product lines to the consumer optical products and expects to leverage AbiCo's long-term relationship with the Japanese customers which could bring additional opportunity for ASUS' existing product lines. On the other hand, as a top three DSC OEM/ODM firm in Taiwan, the alliance allows AbiCo to access ASUS' global manufacturing experiences, strong R&D platform and purchasing power. As a member of ASUS group, AbiCo expects to be more aggressively plan and develop new products in the optical space. In summary, ASUS and AbiCo believe the alliance will create synergy in terms of client base, product lines and target markets.