GoVideo Goes Global, Announces Opening of Consumer Electronics Retail Stores in China

Market Wire, August, 2004

In a move transforming the company from a U.S. product innovator to a true global market competitor, GoVideo® today announced the opening of a chain of franchised retail stores in China (PRC). In partnership with the company's parent, TCL Corp., GoVideo is moving to establish its brands in China and raise awareness of its innovative products in the world's fastest growing consumer market.

The stores will operate under the name GoVideo DigiTech. The first stores are scheduled to open for customers in the fall, in tier-one cities throughout China including Beijing, Shanghai, Guangzhou, Shenzhen, and Nanjing.

Four classes of stores ranging from mobile kiosks to full-size store areas measuring more than 320 square feet are being offered to potential franchisees, each customizable for different venues. Each franchise includes promotion, advertising, training, and customer support from GoVideo DigiTech in China. Additional information about the franchise opportunities can be obtained by contacting the company.

GoVideo DigiTech Is First Step In Global Branding Strategy

The opening of GoVideo-branded retail stores in China is a key element of the company's global strategy to pursue the growing consumer markets in Asia, Latin America, and South America. Together with TCL, GoVideo is extending its global reach and establishing its brands with consumers throughout the world.

"Through our relationship with TCL, we have the ability to market and sell GoVideo and Rave-MP(TM) branded products in China at a time when American brands are rising in popularity there. The rapidly growing consumer base in China is developing new brand loyalties, so this is a unique and ground-floor opportunity for a company such as ours," said Ed Brachocki, GoVideo's chief executive officer.

The company is planning to open up to 200 stores in the first twelve months, and an additional 300 stores in the following twelve months.

Initially, the stores will focus on a variety of portable consumer electronics products, including GoVideo's line of Rave-MP-branded MP3 players. The flash-based RX series and AMP series, each available in 128-megabyte and 256-megabyte versions, as well as the hard disc-based ARC series, available in 2.5-gigabyte and 5.0-gigabyte versions, will be immediately available. The company plans to begin marketing its full line of video products in 2005.

As always with GoVideo, the new retail stores will embody the company's philosophy of Innovation, Simplicity, Value and Support. Innovation in the unique design and functionality, Simplicity in the ease of use, Value in the number of quality features at an affordable price, and the highly trained Support GoVideo DigiTech provides its customers.

GoVideo is owned by Lotus Pacific Corporation, a U.S.-based technology holding whose largest shareholder is TCL. TCL, which has a strong brand presence in China and throughout Asia, recently entered into a joint venture with Thomson Multimedia to create the largest television manufacturer in the world. TCL has grown significantly to become one of the premier technology companies and has provided GoVideo with the resources necessary to cultivate its business in fast growing markets.

"TCL is known for being one of the most successful and savvy sales, marketing, and distribution companies in China," added Brachocki. "Since our acquisition, TCL has encouraged GoVideo to access growing markets throughout the world. Together we've studied the market, and identified an opportunity for an American brand offering innovative, yet value-priced electronics to Chinese consumers."

GoVideo's new line of products is currently available throughout the United States, Canada, and Mexico. For more information or to order accessories, visit GoVideo on the web at www.govideo.com, or www.rave-mp.com.

About GoVideo

Celebrating its 20th anniversary this year, GoVideo is fast becoming a global competitor in consumer electronics and has pioneered some of the most recognized and advanced product lines in the industry, including the DVD+VCR Combo, the Dual-Deck(TM) VCR, DVD HTiB, Networked DVD Player, and DVD Recorder+VCR. The company holds numerous patents covering Dual-Deck technology as well as other electronics products and systems. GoVideo markets its products through the largest and finest retailers in North America under the GoVideo®, CineVision(TM), Sensory Science®, Rave-MP(TM), and California Audio Labs® brand names. For additional information on GoVideo on the Internet, visit www.govideo.com.

About Lotus Pacific

Founded in 1985, Lotus Pacific is a strategic holding company conducting business in a variety of areas within the consumer electronics industry, providing subsidiaries and partners with capital and strategic infrastructure services. Lotus Pacific is publicly traded in the United States under the ticker symbol "LPFC."

About TCL Corp.

TCL Corp. is a major PRC conglomerate that designs, develops, manufactures and markets a wide range of the electronic, telecommunications, information technology and electrical products. For further information on TCL Corp., please visit www.tcl.com.