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FACT SHEET As of Aug 14, 2001: Price $16.90 Trailing 12 Months Diluted EPS $2.45 P/E Ratio 6.9x 52 Week Price Range $12.25 - $18.00 Market Capitalization $95 Million Fiscal Year End March 31 Insider Ownership 50.5% Shares Outstanding 5.6 million Price to EBITDA 4.9x THE COMPANY: Deswell Industries Inc. consists of four manufacturing facilities: Jetcrown Industrial (Shenzhen) Ltd., Jetcrown Industrial (Dongguan) Ltd, as well as a majority interest in Kwanasia Electronics and Kwanta Precision Metals. Deswell's executive offices are in Hong Kong while all of its manufacturing activities are conducted at separate plastics, electronics and metallics factories located in the Shenzhen Special Economic Zone, China. PRODUCTS: Plastic Molding - Deswell Industries produces a wide variety
of plastic parts and components that are used in the manufacture
of consumer and industrial products. This includes cases and parts
for telephones, fax and copy machines, pagers and personal organizers.
KEY CUSTOMERS: 
INVESTMENT HIGHLIGHTS: Attractive Valuation - At $16.90 per share, Deswell is trading at 6.9x trailing earnings and 4.9x EBITDA.Industry Trends - The injection molding industry has benefited in recent years from the trend among major users to outsource an increasing portion of their component requirements. Similarly in the electronics industry, OEMs have turned increasingly to outside contract manufactures to avoid the rising costs of operating a manufacturing site and the need to add more sophisticated and expensive manufacturing processes and equipment. Expanding Strong Customer Base and Product Lines - In meeting its customer requirements for high precision and high speed production, Deswell continues to invest in and expand its production capacity for high-quality plastic injection products. Only approximately 2% of plastic injection companies in China possess the production capability for double injection products since it requires substantial capital investment and specific quality expertise. Expanding Capacity With Strong Cash Flows - Deswell continues to aggressively expand its production facilities, ensuring capacity to meet the increasing demands of its customers and expand its addressable market. The Company has expanded operations to two 70,000 square foot production facilities for its new plastic subsidiary, Jetcrown Industrial (Dongguan) Ltd. The Company has also leased 1.3 million square feet to construct additional plastic injection facilities. Strong Balance Sheet & Dividend Yield - As of June 30, 2001, Deswell had $29.4 million in cash and cash equivalents with no long-term debt. Due to the Company's long-standing and healthy balance sheet, the board of directors has declared dividends for five consecutive years. Going forward into fiscal year 2002, the Company began to pay dividends on a quarterly basis; the first quarter dividend was $0.24 per share.
VALUATION METRICS: P/E Ratio 6.9x Cash Per Share $5.70 Book Value Per Share $12.01 INVESTOR CONTACT: John G. Nesbett / Ryan J. Daniels Lippert/Heilshorn & Associates 212.838.3777 The information contained herein was obtained from the management of DESWELL INDUSTRIES, INC. and other sources we believe to be reliable. This does not constitute the solicitation of the purchase or sale of securities. Lippert/Heilshorn & Associates, Inc. is employed by the Company as its investor relations firm MARCH 2001
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