For Immediate Release:

2 May 2001

Acer Reports 54% Growth in Q1 for Gulf Operation

SME and ISP Markets, Training and Channel Initiatives Boost Revenues

Dubai, UAE

Acer Computer (M.E.) Ltd. has announced a revenue growth of 54% in the Gulf region for the first quarter of year 2001.  The computing giant attributes this increase to a number of factors, including increased focus on the small and medium enterprise (SME) market, growth in the Internet Service Provider (ISP) sector, a shift in structural strategy and concentration on training for channel members.

“Our strong growth rates achieved in Q1 of year 2001 reflect Acer’s keen efforts to meet the needs of small and medium enterprises (SME) in the Gulf market,” said Eric Tien, Managing Director of Acer Computer (M.E.) Ltd.

Acer has empowered SME businesses throughout the Gulf with innovative and affordable bundled technology solutions that enable these organizations to share and access information both internally and externally via the Web.

“Our market penetration in the ISP sector, including providing Acer PCs for Batelco’s Internet subscribers, has also given Acer a significant revenue boost in this quarter,” continued Tien.

Acer’ s strong growth rates in the region can equally be attributed to the company’s newly adopted strategic structural plans – announced by Acer earlier this year – that allowed the computing giant to adapt to changing markets and adopt a simplified, focused, and forward-looking approach to improved customer service in the Middle East and the Gulf.

In addition, Acer also renewed its focus on channel training in Q1 2001.  The provision of advanced technical sales training programs - the Acer Certified Sales Professional, ACSP, and Acer Certified Sales Engineer, ACSE - to its authorized resellers and distributors in the region, also contributed to the significant increase in Acer’s Q1 results in the Gulf.

Sustaining Growth

Acer is now focusing on ways to maintain its growth throughout the Gulf for the current quarter, including a focus on the education sector and consumer market.

“Acer initiatives in the Gulf - such as empowering the educational sector helped us make important forays in Qatar -  this will form a key component of our growth strategy for the upcoming quarters,” commented Dinesh Narayanan, Acer Computer  (M.E.) Ltd. Regional Manager for the Gulf region.

The company’s mobile computing range recorded an overall growth rate of 70% in the Gulf for the first quarter of year 2001, while its personal computing segment experienced an overall growth of 55% in comparison to Q1 of year 2000.

 “Based on our strong Q1 results, we are confident that by the end of year 2001, Acer will double its growth rates in the Gulf and Middle East region as a whole,” added Narayanan.

About Acer

Established in 1976, Acer is among the world's largest PC manufacturer, offering a broad range of PC products from industry-leading high-end PC servers and multimedia desktop computers, to notebooks, computer peripherals and components. Acer is also a leading Internet-enabler, providing Internet component technologies, devices and services. These include end-to-end solutions, mobile phones, plasma displays, TFT screens, projectors, wireless communications, and e-corp solutions. The Acer Group employs nearly 37,000 people in 232 enterprises spanning 41 countries worldwide, supporting dealers and distributors in over 100 countries. Acer Group revenues in 2000 were US$9.4 billion.

For more information about the Acer Group, please visit our website at www.global.acer.com.

For further information, please contact:

Wallis Marketing Consultants

T:  (971-4) 332-3225

F:  (971-4) 332-3228

Email: wallismc@emirates.net.ae

Attn: Mr. Michael E. Wallis, Mr. Nawfal Al-Jourani