(16 January 2004, Hong Kong)

Being developed by Enterprise Consulting Limited (ECL), the Treasury System - Letter of Credit goes live on 16 January, 2004. The system was developed in 3 months time and went through the stages of specifications, development, training, UAT and data conversion. The Letter of Credit system is fully integrated with the ERP system. The project scope covers Bank Facility Management, Import/Export LC Management, Import/Export Loan Management and Cash Forecasts Management. The system can help Vtech more efficiently utilize the Banking Facility and minimize the borrowing cost. Since most ERP software packages lack this particular set of functionalities, this system can fill the missing jigsaw.

ECL has strengthened the development division to provide more Enterprise solutions to the local market.

About VTech
VTech is one of the world's leading consumer-focused technology companies which designs, manufactures, markets and sells telecommunication and electronic learning products through an extensive international distribution network. VTech's sales turnover reached US$866.5 million in the financial year 2003. The Group's high frequency cordless phones enjoy dominant market share in the United States while VTech brand electronic learning products are a prominent label in the US and European markets. With a corporate culture rooted in "Innovation & Technology", the Group invested US$31.0 million in R&D in the financial year 2003. Its customer-centric approach has cemented close relationships with leading retailers and built brand loyalty among consumers of all ages.

With headquarters in the Hong Kong Special Administrative Region and state-of-the-art manufacturing facilities in mainland China, VTech currently has a presence in 10 countries and approximately 13,500 employees, including around 720 R&D professionals in R&D centers in Canada, Hong Kong SAR and Mainland China. This network allows VTech to stay abreast of the latest technology and market trends throughout the world.

Shares of VTech Holdings Limited are listed on both the Hong Kong and London stock exchanges (SEHK: 303; London SE: VTH). Ordinary shares are also available in the form of American Depository Receipts (ADRs) through the Bank of New York (ADR: VTKHY).