Chaintech announced it has no plans to abandon the motherboard market. The comments are in response to published news stories, which incorrectly reported that the company would phase out its motherboard business. In addition, Chaintech announced that Walton Advanced Engineering, Inc. has acquired a 25-percent stake in Chaintech and the company will be renamed Walton Chaintech Cooperation. Walton Chaintech plans to introduce a new line of Chaintech-branded memory modules in the fourth quarter of 2005. Chaintech will phase in a new memory module business to diversify and strengthen the overall growth and profitability of the company. Chaintech recently released several new motherboard and graphic board designs this summer and has a number of new models scheduled for fall 2005 and early 2006 release.

Chaintech Computer Co., today announced it has no plans to abandon the
motherboard market. The comments are in response to published news stories,
which incorrectly reported that the company would phase out its motherboard
business.

In addition, Chaintech announced that Walton Advanced Engineering, Inc. has
acquired a 25-percent stake in Chaintech and the company will be renamed Walton
Chaintech Cooperation. Founded in 1995, Walton Advanced Engineering Inc., is a
memory semiconductor assembly and testing provider headquartered in the
Kaohsiung Export Processing Zone (K.E.P.Z.) in Taiwan.

Walton Chaintech plans to introduce a new line of Chaintech-branded memory
modules in the fourth quarter of 2005. Chaintech assured its dealers,
distributors and customers that the company has no intentions to eliminate its
motherboard business and will continue to manufacture motherboards, graphics
cards and set top boxes.

Chaintech will phase in a new memory module business to diversify and strengthen
the overall growth and profitability of the company. We will maintain our
current motherboard and graphics board business and continue to design new
products in these areas for gamers, entertainment PCs, consumers and business,
said Chaintech President Simon Ho.

Chaintech recently released several new motherboard and graphic board designs
this summer and has a number of new models scheduled for fall 2005 and early
2006 release.