BENQ AND MEDIABOLIC TEAM UP TO OFFER NETWORK LCD TELEVISION SOLUTION TO TV MANUFACTURERS

BenQ and Mediabolic have joined forces to deliver a new family of high-definition LCD televisions with built-in wired and optional wireless networking capabilities.

World's First Complete Family of Network LCD TV Products for OEMs Plays Personal Content and Remote Applications Throughout the Home



TAIPEI, TAIWAN and SAN MATEO, CALIF. - - JULY 20, 2005 - - BenQ, one of the world's top manufacturers of LCD displays, and Mediabolic, a leading provider of end -to -end software solutions for connected entertainment products, today introduced a family of high -definition LCD televisions with built -in network media player capabilities. Designed as a turnkey OEM solution for TV and consumer electronics manufacturers, the BenQ Network LCD TV product line includes 11 different models ranging in size from 14 to 46 inches and will have on -board Ethernet ports with optional wireless (802.11 a/b/g) connectivity. Adding networking capabilities to TVs allows consumers to access music, photo, and video files stored on a PC, network -attached storage (NAS) device, or other servers from anywhere within the home. In addition, the new product line is designed to give users the ability to access remoted applications on the PC and Internet applications so they can view premium content.

According to The Diffusion Group (www.tdgresearch.com), integrating digital media adapter (DMA) functionality into today"s LCD televisions can mean an extra 10 to 15 percent net margin for TV manufacturers. ''We saw the market potential for network TV solutions and designed our LCD TV board to incorporate the powerful Philips PNX1502 media processor and Mediabolic's DLNA -compliant player software to deliver a tightly integrated solution,'' said Peter Chen, vice president and general manager of the Digital Media Business Group at BenQ Corporation. ''The BenQ Network LCD TV product line will help our OEM customers differentiate their own products because it gives them the ability to offer entire families of television sets with networking capabilities - not just one or two models.''

Powered by the Philips Nexperia PNX1502 media processor and state -of -the -art network media player software from Mediabolic, the BenQ Network LCD TV is a robust, highly flexible, cost -optimized OEM solution that brings together the TV and home network to create a unified, lean -back, 10 -foot user experience. It can present PC and Internet applications optimized for TV viewing to the consumer using a remote control to navigate options, rather than a keyboard or mouse. These applications include playback of personal entertainment content, including music, photos, and videos, plus access to remoted applications that deliver premium content services such as full -length movies and real -time news on -demand.

''Thanks in part to the widespread adoption of broadband, consumers are becoming much savvier about how they can access their personal entertainment content,'' said Chris Day, general manager and senior marketing director of the Advanced Media Processing Group at Philips Semiconductors. ''They don"t want to gather around a computer screen to watch movies or look at their vacation photos; they prefer to relax and watch on a television screen in the most comfortable room in the house. The BenQ/Mediabolic product is a prime example of a converged solution designed to address this need in a way that is simple for consumers to set -up and use.''

The BenQ Network LCD TV supports decoding of many leading audio, image, and video formats and codecs. It supports standard -definition (SD) to high -definition (HD) up -conversion with motion -adaptive de -interlacing, and integrates an LCD controller and advanced graphics engine. It also integrates a 10/100 Ethernet controller and optionally supports wireless 802.11 a/b/g networking. Its Mediabolic software architecture is rigorously tested to comply with digital home interoperability standards, including Universal Plug and Play (UPnP), Digital Living Network Alliance (DLNA), and Intel"s Networked Media Product Requirements (NMPR), plus emerging DRM technologies, and major media formats.

''Consumer electronics manufacturers are constantly being pushed to get their products to market more quickly while addressing the needs of the end user,'' said Daniel Putterman, president and CEO of Mediabolic. ''One of the most critical aspects of this new solution is consumer flexibility. Clearly, the BenQ Network LCD TV family gives consumers choices in its wide range of codecs and formats supported, as well as in its TV screen size options. Utilizing Mediabolic's unique architecture and building upon Philips" silicon, BenQ will be able to offer OEMs a premium, ready -to -go network TV solution at a low cost.''

AVAILABILITY AND SALES INQUIRIES
The BenQ family of Network LCD TVs is available immediately for OEM customers. TV manufacturers interested in specification and pricing information should contact Michael Goan (michaelgoan@BenQ.com). TV manufacturers in Japan should contact William Y. Wei (williamywei@BenQ.com).

ABOUT MEDIABOLIC
Mediabolic, Inc. is a leading provider of end -to -end software solutions for connected entertainment products. Mediabolic"s technologies can be embedded in products like televisions, set -top boxes, and network -attached storage devices, allowing consumer electronics and PC manufacturers to extend and differentiate their products. Using a standards -based open architecture, Mediabolic's software has enabled its customers to ship award -winning solutions across diverse platforms to the consumer market. Founded in 1999, Mediabolic is located in San Mateo, California. For more information, please visit www.mediabolic.com.

ABOUT BENQ
BenQ Corporation consists of five main business groups and units - Display and Imaging, Networking and Communications, Digital Media, Computer Products, and Storage Business. Although these business groups and units encompass a broad range of products, each retains a focus on providing consumer -oriented solutions designed especially for the digital lifestyle. 2004 revenues exceeded US$5.1 billion. For more information, please visit our website at BenQ.com.


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