TAIPEI, TAIWAN - Acer Inc. (TWSE 2353), the world’s third-largest branded PC vendor (Source: Gartner 4Q 2007) announced it has entered into a definitive agreement to acquire E-TEN Information Systems Co., Ltd. (TWSE 2432), the world-renowned designer and manufacturer of smart handheld devices.

Under the terms of the agreement, Acer Inc. will offer a share exchange with ratio of 1: 1.07 for all the outstanding shares of E-TEN, which represents total equity value consideration of approximately NT$9 billion. The new issued shares will represent approximately 6% of total Acer outstanding shares.

The acquisition has been unanimously approved by the boards of directors of both E-TEN and Acer and is subject to standard closing conditions, including obtaining approval from Shareholders Meetings and the Governmental Regulators.

We expect the acquisition to close during Q3 2008.

Acer has always believed in the power of mobility and has developed a world-class reputation for cutting-edge mobile solutions.

Mobility is in constant evolution. To stay ahead of the changes, the technology and applications must adapt to the true needs of business and consumer users alike.

The acquisition of E-TEN is in line with Acer’s expansion strategy and follows the recent acquisition of Gateway and Packard Bell, further strengthening its foothold in the fast-evolving mobile communications segment and completes Acer’s range of mobile solutions.