1

Corporate Corporate PresentationPresentationSeptember 2004September 2004

2

Agenda

• Company Overview

• Industry Overview

• Business Strategy

• Financial Highlights

3

Company OverviewCompany Overview

4

Key Corporate MilestonesFive Years in Our Corporate HistoryUnit Shipment in MM Units

1.36.2

9.8 8.8

0.2

7.2

16.0

1999 / 2000 2001 2002 2003 2004 Pro Forma

(1) Annualized based on 1H’04 actual results. Pro Forma shipment data assuming the TCL-Alcatel Joint Venture commenced operations on January 1, 2004

OverseasExpansion

R&D Breakthrough

Market-Leading Industrial Design

Broad and Deep Distribution

Leverage Household Brand Name

Enhancedistributionnetwork topenetrate 3rd/4thtier cities

Migration tochipset-baseddesign throughintensive R&Deffort TCL-Alcatel

Joint Venture Contribution

Leverage “TCL”brand name toenter the mobilehandset market

Breakawaysuccess ofinnovativediamond-encrustedclamshell design

Formation ofTCL-Alcatel Joint Venturein Aug 2004

(1)

5

Corporate StructurePost Listing and TCL-Alcatel JV Formation

(1) Other investors include Cheerful Asset (10%), Nam Tai / Jasper Ace (9%) and Mate Fair (4.2%)(2) Includes approximately 1.8% retained by TCL International post-distribution

Pre Listing and TCL-Alcatel JV Formation

TCL Corporation (000100.CH)

Other Investors (1)TCL International(1070.HK)

TCL Communication

Technology (2618.HK)

23.2%

55.1%

40.8%36.0%

TCL Communication

Technology (2618.HK)

55%100%

TCLCorporation (000100.CH)

Other Investors (1)Public Shareholders (2)

19.4% 57.4% 23.2%

TCL Mobile TCL-Alcatel Joint Venture

6

Management TeamDongsheng Li, Chairman of the Board• Awarded titles of the “Officier de la Légion D’Honneur” (France’s highest distinction) in 2004,

“Fortune Asia Businessman of the Year” in 2004 and “CCTV Man of the Year on Chinese Economy” in 2002

Mingjian Wan, Chief Executive Officer• Graduated in 1991 from the University of Electronic Science and Technology of China with a

doctoral degree in telecommunications

Chambers Wong, Executive Director, International Business• Has over 30 years of experience in the consumer electronics products industry

Vincent Yan, Executive Director, Strategy and Finance• Has over 10 years of management and finance experience in the United States and the PRC

Simon Du, Executive Director, Research and Development• Graduated in 1993 from the Chinese Academy of Space Technology with a Master’s degree

in Telecommunication and Electronic System

George Guo, Chief Operating Officer• Graduated from Stanford University with a PhD in Management Science and Engineering

Habibullah Abdul Rahman, Chief Financial Officer• Has over 18 years’ experience in accounting and finance fields

7

“TCL” – A Premium Brand Name in China

We Are the Partner of Choice for Leading Wireless Companies in China

(1) Based on data from the Beijing Famous Brand Evaluation Co., Ltd (2003)

“TCL” is ranked the 6th most valuable brand in China (1)

8

• Approximately 30 provincial branch offices and over 160 local sales offices

• Over 60 core provincial distributors

• Over 850 core local distributors

• Over 11,500 retail outlets

Our Distribution Capabilities in China

Broad and Efficient Distribution Network in ChinaLean & Efficient Distribution Network

Mobile Phone End Users

Local Distributors

Retailers / Chain Stores

OperatorsRegional Distributors

9

Rapid Growth of R&D CapabilitiesRapid Expansion of R&D Team

46

191

322

522

2001 2002 2003 1H'04

97%

56%

0%7%

2001 2002 2003 1H'04

Reducing Dependence on Module Suppliers

% Unit Shipment with Chipset-Based Design

65%

14%

43%

1H'03 2H'03 1H'04

Improving Product Mix

Color and Multimedia Phones as % of Total Revenues (1)

(1) TCL Communication standalone revenue data, not taking into account TCL-Alcatel Joint Venture contribution

Number of R&D Employees

10

TCL-Alcatel Joint Venture (1)

KEY BENEFITS TO TCL:

Brand Equity

New intangibles after the JV formation

Operator Relationships

(1) Established in August 2004, the JV is 55%-owned by the Company

50 - 60~10Countries with Sales Presence

1,106522R&D Professionals

5600GSM Handset PatentsAfterBefore

11

Industry OverviewIndustry Overview

12

85

145

207

269

2543

1998 1999 2000 2001 2002 2003

99

43

67

2001 2002 2003

China Handset Market

Source: IDC (July 2004)

Impressive Growth in China’s Wireless Market

MM Subscribers

’98–’03 CAGR=60%

China’s Handset Market Growth

MM Units

Sources: MII and IDC

’01–’03 CAGR=51%

Source: IDC (July 2004)Domestic Foreign

98%

2%

Huge Market Opportunity in China

Domestic Manufacturers Have Grown Rapidly

GSM / GPRS Market Share in China1999 2003

44%56%

13

64%

52%

21%

84%

70%

UnitedKingdom

South Korea Japan UnitedStates

China

China Handset Market (cont’d)Mobile Penetration Rate Remains Low in China Strong Mobile Subscriber Growth in Next 5 Years

% Mobile Penetration as at 31 December 2003

Source: IDC (July 2004)

MM Subscribers

341

284

188

94

531China

Western Europe Rest of Asia (excludes

United States

Japan

2008E Mobile Subscribers (MM) ’03-’08 CAGR (%)

15%

2%

9%

4%

2%

162

248292

338390

208

106775127143

2003 2004 2005 2006 2007 2008China SMS Subscribers China MMS Subscribers

Source: IDC (July 2004)

Source: IDC (July 2004)

Japan & China)

Market Potential for Continued Expansion

New Features Will Drive Handset Demand

14

539

650703

779

871

945

391456

2001 2002 2003 2004 2005 2006 2007 2008

21%

6%2%

(1%)

18%

EmergingMarkets

Asia Pacific(ex-Japan)

U.S. WesternEurope

Japan

Global Handset MarketGlobal Handset Demand Continues to Rise Growth From Asia Pacific and Emerging Markets

Increasing Appetite for Enhanced Features

MM Units

Source: IDC (July 2004)

2003-2008 Unit Shipment CAGR (%)

14%

43%54%

62% 68%

29%

2003 2004 2005 2006 2007 2008

% of Global Handset Unit Shipment with Embedded Cameras

’01–’08 CAGR=13%

Source: IDC (July 2004)

Source: IDC (July 2004)

Global Handset Market Continues to Grow

15

Business StrategyBusiness Strategy

16

Strengthen Our R&D Capabilities

Our Technology Partners

• Essential software development• Enhanced features / applications

- Mega pixel camera phones- Advanced PDA phones with

Microsoft Smartphone operating system

- Video streaming, stereo sound, etc.• 3G plan

Focus on Next-Generation Requirements

• Product development and qualification process / methodology

• Validation / Interoperability testing• Telecom and applications platforms

integration skills• Customization skills (to meet telecom

operator requirements)• Strong MMI / user interface expertise

Leverage Existing Core Competencies

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Execute on Product Roadmap to Drive Future GrowthCurrent New Products In the Market

TCL Communication TCL-Alcatel Joint Venture

One Touch 756• 262K color video player

• TFT LCD screen with integrated VGA digital camera

• MP3 capable

One Touch 835• 2 high quality color screens (262K and 65K colors)

• 300K pixel camera capable of video capture

• Dedicated loudspeaker

TCL 738• 2 screens (a classic two-hand digital clock and a 65K color screen)

• WAP / SMS capabilities

• Jewel-encrusted clamshell

TCL e767• 262K color TFT LCD screen

• SMS / MMS capable with USB port

• Embedded digital camera

• Handwritten data input

Product 3• Video streaming• 2 mega pixel camera• Stereo sound capabilities

Product 1• Color screen• WAP / MMS / SMS capabilities• Java software

Product 2• Color screen• Camera with video mode• MP3 capable

TCL CommunicationProduct Roadmap

Product 1• Color screen• Streaming media• PC synchronization

Product 2• 1 mega pixel camera• MP3 capable• Embedded games

TCL-Alcatel Joint Venture Product RoadmapTe

chno

logi

cal S

ophi

stic

atio

n

Product 3• 3 mega pixel camera• Embedded 3D games• Stereo sound capabilities

Product Roadmap

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Realize Synergies to Turn Around Joint Venture Profitability

• Cross-selling opportunities- Alcatel phones sold through TCL distribution channels domestically- TCL phones sold through Alcatel’s networks (operator and

distributor)

• Cost savings- Procurement: Savings from the combined volumes of TCL

Communication and the TCL-Alcatel Joint Venture - R&D: Combination of French technical expertise and Chinese low-

cost engineering resources leads to savings for R&D- Manufacturing: ODM/OEM-type co-operation leverages TCL’s low-

cost design and production base

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Be An Industry Leader In The Long-Term

Develop a comprehensive portfolio from low-end

monochrome to high-endmultimedia

Increase consumer mind share of Alcatel

handset brand

Leverage TCL’s competitive cost structure

Player in Global Player in Global Handset Handset IndustryIndustry

Target early-stage markets

Cost Efficiency

Geographic Coverage

Brand Equity

Product Strength

20

Financial ResultsFinancial Results

21

Unit Shipment Breakdown by Product

TCL Communication Alcatel mPD

MM Units

5.4

1.7

1.0

12.2

7.7

3.610.2

12.2

1.3

0.6

1.3

10.2

2001 2002 2003 1H2004

MM Units

7.5

2.1

2.2

2.2

1.3

6.2

4.4

1.3

6.2

0.1

0.19.8

2001 2002 2003 1H2004

Monochrome Color Multimedia Monochrome Color Multimedia

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TCL CommunicationResults Highlights

15%

329

34%

743

2,167

2001(RMB MM)

9%9%15%Net margin (%)

3208311,268Net profit

21%

2,004

9,561

2003(RMB MM)

23%27%Gross margin (%)

8322,244Gross profit

3,6978,348Net sales

1H’04(RMB MM)

2002(RMB MM)

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TCL CommunicationKey Financial Data

0.1

1.3

12

38

79%

2001

0.0

1.5

3

20

75%

2002

0.0

1.9

12

15

30%

1H’04

0.0Debt/Equity ratio

1.8Current ratio (2)

10A/R turnover (days)

17Inventory turnover (days) (1)

39%ROE (annualized)

2003

(1) Finished goods only(2) Current liabilities exclude dividends payable

24

Alcatel mPDResults Highlights

(38%)

(398)

(15%)

(153)

1,047

2001(Euro MM)

(13%)(12%)(2%)Net margin (%)

(35)(74)(20)Net loss

11%

69

611

2003(Euro MM)

10%12%Gross margin (%)

27138Gross profit

2681,183Net sales

1H’04(Euro MM)

2002(Euro MM)

25

Alcatel mPDKey Financial Data

0.0

1.0

501

0

NM

2001

0.0

1.0

45

0

NM

2002

0.0

1.2

56

4 (2)

NM

1H’04

0.0Debt/Equity ratio

1.0Current ratio

66A/R turnover (days)

2Inventory turnover (days) (1)

NMROE (annualized)

2003

(1) Finished goods only(2) Based on 1Q’04 finished goods balance as of March 31, 2004

26

Recent Financial Performance

661

July

453Handset Unit Shipment (000)

August2004