(Taipei News) Winbond Electronics Corp. today announced that the Company will establish a corporate stock repurchase program (or Treasury stock). A resolution by the board of directors of Winbond has authorized a plan to purchase 10 million shares of Winbond common stock from the market with a purchase price between NTD 24/per share and NTD 33/per share. The treasury stock will be used as Employee Incentive Stock Plan.
Due to increased competition for professional talent and high tech expertise, the Company expects the treasury stock will provide additional incentive program for employee, enabling the Company to attract talent and better motivate its current work force.
Because of the short term DRAM market slow down, Winbond's stock price had been adjusted 70% down from its high in past few months. Such a result does not, however, reflect the outstanding performance of the company in the first three quarters of 2000, in which the revenue totaled exceeding NT $36.83 billion, with net profit after tax NT $9.34 billion and EPS NT $2.64. Furthermore, looking into the future, The Company firmly believe that the given Winbond's strategy of balanced business between the General IC Business Group and the DRAM Business Group, will be able to minimize the impact of market swings. In addition, the Company is confident about the long term prospect of the IC industry.
As a result, the company would like to take this market opportunity to create its 1st ever treasury stock for Employee Incentive Stock Plan.
Spokesperson
Wilson Wen
Vice President of Administrative Center
Tel：03-5792755
News Liaison
Mike Liu
Deputy Director
Tel：03-5792516
Email：ckliu@winbond.com