News Releases

June 28, 2004

For Immediate Release

Alpine Electronics, Inc.

Dedication Ceremony for China Dalian Development Center.

Alpine Electronics, Inc. held a ceremony on Wednesday, June 16 in Dalian, China, for the dedication of the company's new China development and design center, the Alpine Electronics (Chna) Co.,Ltd.DalianR&DCenter.

In 1996 our company established Dandong Alpine Engineering, Inc. in Dandong City, Liaoning Province, China. In 2000, this company was relocated to Dalian, where it became Dalian Alpine Engineering Inc. and began mass-production design of car audio hardware. In 2002, this center was combined with the Production Software Development Division of the joint venture Shenyang Neusoft Co., Ltd. to create the Alpine Electronics (China) Co.,Ltd.DalianCenter. With this combination of hardware and software development functions, we intend to improve the efficiency of our development process. Our company is working to strengthen our cost competitiveness by creating an integrated system for mass-production design and actual production in China. Currently, we are engaged in mass-production design of all car audio models and car AV products for aftermarket sales worldwide, and are producing these products at our China production centers.

This development center, the Alpine Electronics (China) Co.,Ltd.DalianR&DCenter, will expand its current functions and grow to be the most important development center after the JapanHeadOfficeDevelopmentCenter.
These development center functions include a complete set of functions ranging from concept system design of on-board audio devices and telecommunications devices to mass-production design and quality evaluations, as well as development purchasing functions for procurement of parts in China. By increasing the engineering staff from 300 persons to 600 persons in 2006, we intend to strengthen the company's development engineering ability and streamline development investment.

Alpine began development of software for on-board telecommunications devices in China in 1991, in cooperation with Dongbei University of Engineering (now Northeastern University) in ShenyangCity. In 1996, as a result of a joint venture between our company and Northeastern University, Shenyang Neu-Alpine Software Co., Ltd. (now Shenyang Neusoft Co., Ltd.) was listed on the Shanghai Stock Exchange. NEU-Alpine Software Co., Ltd. is engaged in software development for car audio systems at Neusoft A/E R&D Center Dalian, which was also announced at the same time, and also in software development (primarily for navigation systems) in Shenyang. Currently it is developing navigation system software for the China market, and will be marketing this software in spring of 2005. This development center will continue to be active in software development in the future. On this date we also announced the establishment of a Telecommunications Research Center in collaboration with NEU-Alpine Software Co., Ltd. This research center will be established for the purpose of developing global cutting-edge onboard IT devices through research into advanced technologies and core technologies for on-board telecommunications systems.
Precise details concerning the establishment of this research center are expected to be finalized at the end of July.

The June 16 dedication ceremony was attended by approximately 250 guests, including the Honorable Mayor Xia of Dalian, top members of the provincial and city governments, top management of Chinese and overseas automobile manufacturers, and guests from retailers and parts manufacturers.
As the representative of the attending guests, Mayor Xia expressed his gratitude for our company's contribution to the development of Dalian industry over the past decade and more, and spoke of his expectations for progress from this new development center. As the representative of our company, President and CEO Seizo Ishiguro delivered a message outlining the following goals for this development center.

(1) Become the No. 1 development and design company in China.
(2) Become a company that can fulfill the dreams of its employees.

Contact for more information on this subject: Alpine Electronics PR Office 03-3494-1101 (operator)


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