Innolux Display Corp. ("Innolux") (TAIEX: 3481) and TPO Displays Corp. ("TPO" Emerging Market Code: 3195) today announced that their respective board of directors approved the consolidation of the medium and small size panel business by 100% share swap.The swap ratio for TPO to Innolux would be 8.0 to 1, subject to the completion of all legal procedures.

Both companies are very complementary in small and medium size panel business. The consolidation would combine the strengths of both companies, which could greatly enhance the competitiveness of the business covering the in-depth and completeness of technology offerings, full range of product offerings, customer and IP portfolio, and economy of scale. With the consolidated and enlarged scale, we would be able to reach a larger scale of talent pool and supply base for better services to our customers.