HONG KONG (Standard&Poor's) June 20, 2006--Standard&Poor's Ratings Services said today that its rating on Hon Hai Precision Industry Co. Ltd. (Hon Hai, BBB+/Stable/--) would not be affected by the company's plan to acquire Premier Image Technology Corp. (Premier), a leading digital still camera manufacturer in Taiwan, in a share-swap transaction worth New Taiwan dollar (NT$) 30 billion. The acquisition is expected to expand Hon Hai's business in the consumer electronics sector. Hon Hai's credit profile is unlikely to be affected, given the relatively insignificant size of this share-swap transaction, and Premier's good operating margin and moderate leverage. In 2005, Hon Hai recorded total revenue of NT$912 billion and net income of NT$44 billion (total assets of
