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[01 5th, 2007]
Memory-Tech Increases Production of HD-DVD and DVD Discs in China
Memory-Tech Corporation

Memory-Tech Corporation today announced that it will increase investment in China-based Shanghai United Optical Disc Co., Ltd (“Shanghai United Optical Disc”) in the amount of 3.2 million U.S. dollars.

Memory-Tech’s investment was prompted by the fast-growing DVD market in China. With the Beijing 2008 Olympic Games, large-screen television is in higher demand among Chinese consumers. As a result, there is an increasing need to develop formats for high definition images, to establish integrated technology for content production, and to adopt countermeasures against piracy. To meet these needs, Memory-Tech decided to improve the HD DVD manufacturing infrastructure of Shanghai United Optical Disc.

The investment will improve the mastering equipment and HD DVD/DVD manufacturing equipment. The improvement is expected to increase the monthly capacity to 3.5 million DVD discs and 2 million HD DVD discs.

Memory-Tech has already formed an alliance with two other Chinese companies, China Record and Video Publishing Corporation, content provider backed by the Ministry of Culture of the Chinese government, and China Record Corporation (“China Record”), leading Chinese recording company, both of which agreed to provide technological cooperation to Memory-Tech to establish HD DVD market in China. The company plans to take advantage of the facility investment of Shanghai Optical Disc for further market deployment.

About Shanghai Untied Optical Disc
Shanghai United Optical Disc is a disc manufacturing company established in 1991. Since the capital participation in 1995, Memory-Tech Tech has provided management/technology/sales support to the company. Other shareholders include China Record and Mitsubishi Corporation. With 1.7 billion yen sales in 2005, Shanghai United Optical Disc has gained both domestic and international recognition as the first manufacturer to be qualified to produce CD-ROM and DVD-ROM discs for Microsoft.

Contact Information
Corporate Planning Department of Memory-Tech Corporation
Tel: +81-3-3405-8890

Shanghai United Optical Disc Headquarters
DVD/HD DVD manufacturing equipment