Gigabyte United Inc. Formed

Gigabyte Technology will transfer its existing own-brand desktop PC motherboard and graphics cards business, valued at NT$ 4.08 billion (US$ 124 million), to Gigabyte United Incorporated, a joint venture it will establish with Asustek Computer in January of 2007. Gigabyte United will have permanent and exclusive licensed use of the Gigabyte brand and trademark for making and marketing desktop motherboards and graphics cards. Gigabyte Technology will charge for the licensed use of its brand name for five years from the first year Gigabyte United begins to make a profit. Gigabyte United will pay 50% of its operating profit to Gigabyte for three years with the percentage to decrease to 33% for the following two years.


Gigabyte Technology will transfer its existing own-brand desktop PC motherboard and graphics cards business, valued at NT$ 4.08 billion (US$ 124 million), to Gigabyte United Incorporated, a joint venture it will establish with Asustek Computer in January of 2007. Gigabyte United will have permanent and exclusive licensed use of the Gigabyte brand and trademark for making and marketing desktop motherboards and graphics cards. Gigabyte Technology will charge for the licensed use of its brand name for five years from the first year Gigabyte United begins to make a profit. Gigabyte United will pay 50% of its operating profit to Gigabyte for three years with the percentage to decrease to 33% for the following two years.

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