OMNIVISION EXPANDS KOREA OPERATIONS TO SUPPORT LG GROWTH
SUNNYVALE, Calif. — March 7, 2006 — OmniVision Technologies, Inc. (NASDAQ: OVTI), a world leading supplier of CMOS image sensors, announced today a strategic relationship with LG Electronics to be the preferred supplier for its fast growing camera phone business. In order to support the number one CDMA phone supplier, OmniVision will expand its Korean operations by hiring additional staff and working with its module partners to ensure capacity for 2006. OmniVision expects to supply camera chips for over 50 percent of LG’s camera phone shipments this year.
According to market research firm Strategy Analytics, LG Electronics currently leads the world in CDMA phone sales with a 21.2 percent worldwide market share and over 22 million CDMA handsets sold in the first three quarters of 2005. In overall handset sales worldwide, LG ranks among the four largest handset makers, which include Nokia and Motorola, with a 7.4 percent market share.
“LG Electronics sold over 15.5 million GSM and CDMA handsets worldwide in the third quarter alone,” said Mr. S. K. Kim, Vice President, Mobile Communication Company of LG Electronics Inc. “Camera phones will be an important growth driver in our handset business in 2006, with more than 70 percent of total handset shipments likely to include a camera. We are pleased to build on our strong existing relationship with OmniVision and to have their commitment to support our technical and logistical requirements. OmniVision support will allow LG Electronics to capitalize on the anticipated growth in camera phone demand.”
“We are delighted that our strategic partnership with LG continues to flourish,” said Jess Lee, Vice President of OmniVision’s Mainstream Products Business. “By constantly improving product performance, quality and customer care, OmniVision continues to differentiate itself by supporting customers, not only with CMOS image sensors, but with total camera solutions.”
Forward Looking Statement
Certain statements in this press release, including statements regarding OmniVision’s expansion of its Korean operations and supply volume to LG Electronics, are forward looking statements that are subject to risks and uncertainties. These risks and uncertainties, which could cause the forward looking statements and OmniVision’s results to differ materially, include, without limitation: demand and market growth for camera phones, difficulties in foreign operations and expansion and the other risks detailed from time to time in OmniVision’s Securities and Exchange Commission filings and reports, including, but not limited to, OmniVision’s annual reports filed on Form 10-K and quarterly reports filed on Form 10-Q. OmniVision expressly disclaims any obligation to update information contained in any forward looking statement.