CMC Magnetics expects to beat DVD profit target

August 22, 2004

The
TaipeiTimes reports that CMC is doing better then expected. The company
expects to grow more then the 50% it expected. The company, which is according
to the article, the largest DVD recordable manufacturer of the world is able to
grow due the large demand for DVD recordables. Bob Wong, chairman of the company
is very positive about the future of CMC asa ltough the competition is
intense and the supply is larger then the demand the company still manages to
grow.

Wong's forecast comes even as the maker of about half
of the world's recordable DVDs said supplies of the disks have exceeded
demand. In June, the Taipei-based company's sales fell for the first time
since November 1992, according to reports CMC filed to the Taiwan Stock
Exchange. The drop in monthly sales widened to 19 percent last month from
10 percent in June.

"The stock is very cheap at the moment," said Chris Ruffle, who counts
shares in the company among the US$60 million Greater China Fund he
manages at Martin Currie Investment Management.

The article also mentions that CMC has build a $ 200
million factory for DVD recordables that will open next month and will triple
the output of DVD recordables that can be recordered at higher speeds. More
information can be found in the article on the Taipei Times.

Source: TaipeiTimes