NTEEP Announces 2006 Q4 and Full-Year Results

2006 Sales up 6.6%, Operating Income Down 17.2%, EPS Down 24.2%

Q4 2006 Sales up 20.1%, Operating Income up 22.2%, EPS Up 35.9%

HONG KONG, Feb. 12 /Xinhua-PRNewswire/ -- Nam Tai Electronic and Electrical Products Limited ("NTEEP" or "the Company") (HKEx: 2633), a leading vertically-integrated manufacturing solutions provider of consumer electronics and communications products and software development, today announced the unaudited consolidated results of the Company and its subsidiaries (the "Group") for the fourth quarter of 2006 ended 31 December 2006 and the audited consolidated results of the Group for the year ended 31 December 2006 respectively.

During the quarter ended December 31, 2006, the Group recorded sales of US$48.9 million, representing an increase of 20.1%, which was mainly due to the increase in sales of mobile phone accessories. As a result of the Group's competitive pricing policy and external factors such as increasing costs of raw materials and labour costs, gross profit margin dropped by 1.0% to 14.9% as compared with the same period last year. The decrease in gross profit margin was compensated by an increase in sales and as a result, net profit increased by 35.7% to approximately US$4.7 million in the fourth quarter of 2006 as compared with the same period last year.

For the year ended 31 December 2006, the sales of the Group only increased by 6.6% from approximately US$167.3 million to US$178.3 million when compared with the same period last year. Gross profit margin dropped by 3.5% to 16.9% as compared with the same period last year, a decrease of approximately US$4.1 million. Operating income and net profit of the Group for the twelve months ended 31 December 2006 also dropped 17.2% and 21.7% to US$17.8 million and US$17.3 million respectively as compared to the same period last year.

Ms. Sit Fung Ying, Connie, CFO of NTEEP, said, "The Group believes that the overall market conditions faced by the Group will remain to be challenging. Mobile phone accessories and home entertainment devices will be the core focus of the Group in 2007. The Group will continue to expand business opportunities in terms of customer portfolio and product range, and to control costs and expenses as well so as to achieve better financial results."

About NTEEP

Nam Tai Electronic & Electrical Products Limited ("NTEEP"), a subsidiary of Nam Tai Electronics, Inc. which is listed on the New York Stock Exchange, is a well-established vertically integrated manufacturing solutions provider for some of the world's most reputable brand owners of consumer electronics and communications products including optical devices, home entertainment devices, mobile phone accessories and educational products. NTEEP is also a total solution provider offering a wide range of services on software development, data processing and compression and electronic hardware design and development specializing in digital dictionary and navigation system. NTEEP's largest customers include Sony Ericsson Mobile Communications AB, Texas Instruments Incorporated, Sony Computer Entertainment Europe Ltd. and GN Netcom A/B.

Nam Tai Electronics, Inc. ("NTE") (NYSE: NTE) is an electronics design and manufacturing service provider to many of the world's leading original equipment manufacturers, including Epson Precision (H.K.) Ltd., Canon Electronic Business Machines (H.K.) Co. Ltd., Optrex Corporation, Seiko Instruments Inc., Sharp Corporation, Sony Corporation, Sony Ericsson Mobile Communications AB, Texas Instruments Incorporated, Toshiba Matsushita Display Technology Co. Ltd. It manufactures high-quality telecommunications products, palm-sized PCs, personal digital assistants, linguistic products, calculators and components such as LCD modules, wireless communication terminals and their modules, and CMOS sensor modules.

For more information about NTEEP, please visit its website atwww.namtaieep.com . For more information about NTE, please visit its website at www.namtai.com

Nam Tai Electronic & Electrical Products Limited

2006 Q4 and Full Year's Results Key Highlights

(In thousands of US Dollars, except as otherwise stated)

Quarterly Results 12 Months Results

Q4 2006 Q4 2005 YoY (%) 2006 2005 YoY (%)

Sales (Revenue) 48,898 40,731 20.1 178,322 167,339 6.6

Gross Profit 7,290 6,461 12.8 30,126 34,210 (11.9)

% of sales 14.9 15.9 -- 16.9 20.4 --

Operating Income 4,140 3,388 22.2 17,766 21,453 (17.2)

% of sales 8.5 8.3 -- 10.0 12.8 --

Per share

(US cent(s)) 0.47 0.38 23.7 2.02 2.52 (19.8)

Profit after tax and

Minority interests

(Notes a & b) 4,689 3,455 35.7 17,329 22,138 (21.7)

% of sales 9.6 8.5 -- 9.7 13.2 --

Basic earnings per

share

(US cent(s)) 0.53 0.39 35.9 1.97 2.60 (24.2)

Diluted earnings per

share

(US cent(s)) 0.53 0.39 35.9 1.97 2.60 (24.2)

Weighted average

number of shares

('000) 881,671 881,671 -- 881,671 851,240 --

Basic (Notes c & d)

Diluted (Notes c & d)

Notes:

(a) Included a loss of US$1.87 million on available-for-sale investments

arising from the split share structure reform of TCL Corporation in

the second quarter of 2006.

(b) Reversal of US$0.7 million was made in December 2006 relating to

commission payable for the period from October 2004 to January 2006

resulting in reduction of selling and distribution costs.

(c) The Company issued 81,670,588 shares for the acquisition of Namtek

Group comprising Namtek Japan Company Limited and Shenzhen Namtek

Co., Ltd. ("Namtek Shenzhen") on 17 May 2005 and its results were

included as from that day.

(d) Excluded outstanding share options of 14,720,000 which had not been

exercised as at 31 December 2006

(as at 31 December 2005: 17,640,000).

For more information, please contact:

Gavin Lam

Tel: +852-2263-1014

Fax: +852-2263-1223

Email: gavinlam@namtai.com.hk