TFS Announces Design Wins in the Personal Media Player Market

TFS Announces Design Wins in the Personal Media Player Market Popular Multi-Media Players Use State-of-the-Art Color TFT Displays TEMPE, Ariz., Jan. 19 /PRNewswire-FirstCall/ -- Three-Five Systems, Inc. (NYSE:TFS), a global provider of specialized electronics manufacturing services (EMS) and display solutions announced that it has secured design wins for its color thin-film transistor (TFT) Platform Product line from two manufacturers of hand held audio/video players or Personal Media Players (PMPs). Both programs are currently in the prototype production phase with initial volume production expected to commence in Q1 of 2005. Hand held audio/video players, or PMPs, are portable devices with color screens that display multimedia content in high resolution and video capable speed. They are frequently described as enabling users to watch video in the palm of their hand. According to In-Stat/MDR, this segment is expected to have grown 700% in 2004 and to have a 170% CAGR through 2008. The PMP market is expected to fall into two different distinct segments. One will be focused on large sized high-end product ( > $500) and one focused on smaller sized lower-end product ( < $200). The small sized products will use cell-phone- like displays and will function as an MP3 jukebox with the added features of video, photography and TV reception. TFT Platform Products from TFS allow PMP manufacturers and makers of other mobile, handheld devices to leverage the popularity and increasing cost- effectiveness of small form factor TFT displays. The TFT technology is rapidly becoming the standard for cell phones and PDAs. The reduced prices of small sized TFT displays are helping drive the growth in this market and are allowing the smaller sized PMP manufacturers to achieve the price targets that consumers demand. TFS is able to deliver semi-custom versions of its Platform Products that are optimized for the PMP market requirements from an electrical, optical and mechanical perspective. As they require little customization, average product cycle time is only four months. This allows original equipment manufacturers (OEMs) to deliver new technology to the market faster and enhance their chances of capturing greater initial market share. "Because the primary purpose of the new PMP devices is to show video, they require the high-speed and high resolution performance of TFT displays," said David McQuiggan, Sr. Vice President, Platform Products of TFS. "That performance used to come with a high price tag. But the growth of TFT usage in other consumer electronic products like cell phones, combined with the shortened design cycle time that our Platform Products provide, OEMs can now produce cost-effective leading-edge products utilizing the latest in display technology." TFS offers TFT Platform Products ranging in size from 1.8" to 6.2": Model Number Size Resolution TFS1216-070 1.8" 128x160 TFS1722-018 2.2" 176x220 TFS3224-017 2.2" 240x320 TFS3224-012 2.83" 240x320 TFS6424-009 6.2" 640x240 Contact TFS at lcd_modules@tfsc.com or call Tim Kaske, Product Manager, Platform Products at (602) 389-8740 for more details. About Platform Products from TFS TFS employs a fabless foundry model approach in its Platform Product Line, the company's semi-custom TFT product offering designed specifically for the high-volume mobile electronics market. Using this new fabless TFT foundry model, similar to the established fabless semiconductor model used in IC development, TFS has partnered its LCD design services and products groups with one of the world's top-tier TFT panel manufacturers. TFS then employs its low-cost EMS structure to manufacture state-of-the-art color LCD modules for leading OEMs. The TFS Platform Product line begins with a standardized glass platform. TFS' global display design and applications engineers then tailor certain aspects of the display, such as the flex interface, sub-display or mounting features, to optimize a customer's particular application. This approach eliminates a full-custom design process, resulting in reduced time-to-market and cost. For customers with unique display requirements, TFS also offers full-custom display design and manufacturing through its LCD Module Centers of Excellence, located at the company's Tempe, Arizona and Beijing, China facilities. For datasheets or additional sales information, please e-mail lcd_modules@tfsc.com or call (602) 389-8600. About Three-Five Systems(R) TFS is a recognized leader in providing specialized electronics manufacturing services (EMS) to original equipment manufacturers (OEMs). TFS has a global footprint, with operations in the United States, Europe, and several locations in Asia. TFS offers a broad range of engineering and manufacturing capabilities, with a special emphasis and expertise in display solutions. TFS' website is located at www.tfsc.com. Three-Five Systems, Inc. and the TFS logo are trademarks or registered trademarks of TFS. All other trademarks are the property of their respective owners. Certain statements contained in this document may be deemed to be forward- looking statements under federal securities laws, and TFS intends that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, but are not limited to: (1) the expectation that initial volume production will commence in Q1 of 2005; and (2) the expected growth of the PMP market and its expected segmentation. TFS cautions that these statements are qualified by important factors that could cause actual results to differ materially from those reflected by the forward- looking statements contained herein. Such factors include, but are not limited to: (a) changes in markets or demand; (b) the failure of the platform products and the fabless TFT foundry model to achieve desired results; (c) the failure of TFS or its foundries to meet all requested production schedules due to manufacturing, yield, or supply issues; and (d) other risks as identified from time to time in TFS' SEC reports, including Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and Annual Reports on Form 10-K. Source: Three-Five Systems, Inc. CONTACT: Elizabeth A. Sharp, Vice President Corporate Relations of TFS (Three-Five Systems, Inc.), +1-602-389-8835 Web site: http://www.tfsc.com/ ------- Profile: International Entertainment