Syntax Groups Accelerates Momentum in Consumer Electronics
Syntax Reports Rapid Progress on Retail Adoption of Olevia LCD TVs, Fast-Track Corporate Growth and Business Outlook; Olevia Recognized as Fastest Growing LCD TV Brand in North America
City of Industry, CA-October 6, 2004-Syntax Groups Corporation(tm), manufacturer of the high-value, low-priced Olevia(tm) family of widescreen HDTV-ready LCD TVs, today reported on its unparalleled growth since first introducing the Olevia line to the market approximately six months ago. Delivering on its mission to design and mass-produce digital convergence consumer electronics products with superior specifications and market-leading low prices, and support consumers of its Olevia brand with a unique customer-friendly after-sale program, Syntax has rapidly established broad distribution in the North American retail sales channel, expanded distribution globally, attained profitability, and is on track to achieve approximately $150 million revenue and an IPO in FY 2004.
According to DisplaySearch President Ross Young, “We believe Syntax’ Olevia is the fastest growing LCD TV brand in North America. Its attractive features and prices and broad channel strategy are expected to result in its market share more than doubling from 1.8% in Q2’04 to 4.9% in Q3’04.”
Dramatic Six-Month Highlights
After only six months since shipping its first Olevia LCD TVs, Syntax has achieved the following:
· Superior Technology-Introduced its first three competitively priced Olevia LCD TVs (20-inch, 27-inch, 30-inch), with plans in Q4 2004 to launch 32-inch and 37-inch models, and announced its first Olevia LCOS rear projection TV priced below $3,000. Olevia LCD TVs are designed to deliver a total quality digital entertainment experience with the best specifications, best prices, and best warranty.
· Sweet-Spot Pricing-To stimulate brand awareness and consumer demand, Syntax introduced its Olevia LCD TVs with some of the lowest industry prices, but without sacrificing any of Olevia’s rich specifications or product quality. Olevia LCD TVs are currently priced at $599 (20-inch), $1299 (27-inch) and $1599 (30-inch), with $1,999 and $2,999 respectively priced for the new 32-inch and 37-inch models.
· Best Warranty & Customer Satisfaction-With the richest warranty in the industry, Syntax provides consumers of its Olevia 27-inch and larger LCD TVs with a unique free first year on-site service plan. Prior to final shipment to customers, 100% of Olevia LCD TVs are re-inspected and QC-retested at Syntax headquarters for guaranteed quality assurance, and double-boxed for additional protection during transport. Olevia’s product quality and high customer satisfaction levels have resulted in only a less than 0.1% return rate across Syntax’ full line of LCD TVs.
· Broad Channel Distribution-“Instead of taking years to build, Syntax has firmly established a robust channel sales program that includes consumer-direct retailers, regional and national chain stores, and distributors,” said Denis Karpeles, Senior Vice President of Sales & Marketing for Syntax.
The Olevia brand is currently sold through leading consumer electronics channel partners including ABC Warehouse, Amazon.com, American TV, BDI Laguna, Buy.com, BuyRite, C4Sure, CompuSmart (Hartco), Dakota TV, DataVision, D&H Distributing, Ecost, Fry’s Electronics, hhgregg, Micro Center, PC Connection, PC Mall, Petra, RC Willey, Rent-A-Center (via BDI Laguna), Staples, Staples.com, Target.com, TigerDirect.com and many other authorized resellers. “With the quick turn rates experienced by retailers due to Olevia’s popularity, Syntax regularly receives reorders from the retail channel to satisfy the increasing consumer demand,” said Karpeles.
· Domestic & International Business Expansion-In order to accommodate the rapid growth of Syntax Groups’ operations, the company has just relocated into its new 100,000 square foot facility in Southern California that includes a state-of-the-art final test, assembly and quality control unit to assure the highest product quality, a product showroom, warehouse and distribution center. To globally extend its Olevia brand, the company has opened Syntax Far East Ltd., its own distribution and service center in Hong Kong. Additionally, through its alliance with Taiwan Kolin Company, utilizing the KolinPhil, Inc. (www.kolinphil.com.ph < http://www.kolinphil.com.ph>) sales and service network, Syntax has established an exclusive distribution and service center in the Philippines to expand the presence of Syntax’ Olevia LCD TVs and LCOS TVs throughout the Southeast Asia region. Syntax plans to continue its global expansion into Europe and Australia in 2005.
· Industry Recognition-At the RetailVision event in September, Syntax was named a “Nominee” for a Best of RetailVision 2004 award in the “Best Digital Home” category. For both winners and nominees, the “Best of RetailVision Awards” carry the prestige and the confirmation that a vendor’s products and strategies are succeeding in the consumer channel. Syntax also raised its stature in the industry at the recent HDTV Forum conference where Syntax CEO James Li presented a compelling speech about the market dynamics that would enable consumers to more rapidly adopt the LCD TV.
· National TV Exposure-The Olevia LCD TVs have been showcased recently on the Home Shopping Network (HSN) as a ‘Today’s Special’ product, Shop@Home, and the nationally syndicated cable TV program “Christmas in July”. Additionally, the Olevia brand will appear this December on the CBS network “Price is Right” show, and beginning in November on the nationally syndicated show, “Hi-Tech Toys for the Holidays”. In January 2005, the HGTV/Canada network is scheduled to spotlight Olevia on its new primetime show called “My Parent’s House.”
· Key Metrics-Due to the Olevia LCD TV brand’s growing popularity, Syntax has attained an approximate 5% market share. The company has attained profitability from its operations to date, and is on track to achieve approximately $150 million revenue in FY 2004 (ending June 30, 2005).
Building on it successes, Syntax’ outlook going forward is very positive. Based on Syntax Groups’ complete vertically integrated business model, competitive advantages in pricing, technology and channel distribution, joint venture relationships with Taiwan Kolin and DigiMedia Technology, preferential alliances with renown LCD panel and component suppliers in Asia, brand and channel-building strategies, and business profitability projections, the company believes it is well positioned for an IPO in early 2005 to raise funds for further expansion.
“We are extremely pleased with our results to date, and are gratified by the outstanding support we have received from our technology and manufacturing partners as well as our associates in the retail channel,” said James Li, Chief Executive Officer of Syntax Groups. “Consumers who are intrigued by incorporating an LCD TV into their homes or offices are quickly realizing the true value of our Olevia brand.”
About Olevia LCD TVs
Syntax’ Olevia family of LCD TVs feature industry leading specifications, including the highest contrast ratios for sharp, vivid pictures, dual TV tuners, VGA and TV split screens, DVI inputs with HDCP, ultra-thin flat panel LCD screens, fast refresh rates and response times, and 14-16 rows of transistors for image brilliance and clarity. The dual NTSC TV tuner provides picture-in-picture capability, as well as the ability to display split-screens or up to 12 windows displayed concurrently for multiple channel scanning. Using the VGA input, consumers can connect the Olevia LCD TV to a PC to use as a multimedia display, or they can watch TV or movies on one half of the display, while simultaneously checking email or surfing the Internet on the opposite side.
About Syntax Groups
Headquartered in Southern California, Syntax Groups Corporation (www.syntaxgroups.com < http://www.syntaxgroups.com>) is a complete vertically integrated R&D, manufacturing and channel sales company of high value consumer electronics and computer technology convergence products for the post-PC era. Syntax Groups maintains a competitive advantage over global brands due to its technology and engineering, lower prices, lower cost infrastructure, rapid channel distribution, and quick response to market dynamics. Through its joint venture company, DigiMedia (www.digimedia.com.tw < http://www.digimedia.com.tw>), formed in Taiwan with Taiwan Kolin Company (TSE 1606.TW, www.kolin.com.tw < http://www.kolin.com.tw>), Syntax Groups controls a powerful end-to-end supply chain including R&D and manufacturing of backlights for its LCD TVs, optical engines for LCOS TVs, a strategic relationship with Chi Mei Optoelectronics (TSE 3009.TW, www.cmo.com.tw < http://www.cmo.com.tw>) for Olevia’s high-grade LCD panels, mass production manufacturing of LCD TVs and LCOS TVs, quality control, channel sales, marketing and distribution with a solid back-end customer support program. Syntax sells its full-featured Olevia LCD TVs though a rapidly growing channel network of consumer-direct online partners, and regional and national retail stores in North America, and internationally in Southeast Asia.
Syntax Groups Corporation and Olevia are trademarks of Syntax Groups Corporation.