Touch International Enters Joint Venture With Asian Manufacturer

Joint Venture provides access to Asian manufacturing plants, increases global manufacturing capabilities, improves time-to-market, and reduces costs for Touch International's customer base

Austin, TX 2004 - April 2, 2004

Touch International Corporation, a leading manufacturer of touch technology, today announced the joint venture with Japanese touch screen manufacturer DMC, Ltd., with sales of approximately 15 million dollars. The new partnership allows Touch International to be more competitive on a global scale by substantially reducing production costs, increasing manufacturing capacity and speeding time to market. The DMC partnership also provides capacity to expand the production of its innovative Digital Ink/eXtreme™ touch solutions into the high volume smart phone, PDA, appliance, and automotive markets.

"This is the next step in our pursuit for the number one position in the global touch screen market," said Michael Woolstrum, co-founder and president of Touch International. "DMC is a respected company with state-of-the-art facilities and the combination of our two companies makes a great deal of sense. DMC will enable Touch International to penetrate the Asian market and aggressively compete in the global touch screen market."

"We are proud to join forces with Touch International. The touch market is continuing to grow and we look forward to making the Touch International and DMC brands market leaders," said Sumio Miyazaki, Chairman of DMC

Through the DMC partnership, Touch International will utilize product from all three of DMC's manufacturing plants, including factories in Japan and Southeast Asia. These plants feature state-of-the-art clean rooms and specialized technology for manufacturing a wide range of touch screen technology. DMC factories currently build products for internationally known, fortune 100 corporations. Management and development for DMC will continue to be handled by existing DMC staff.

Touch International's global strategic customer base will also benefit by the close proximity to some of the world's largest contract manufacturers, enabling product to be integrated quicker and shipped more affordably, greatly reducing end costs and time to market. Touch International manufactures high-quality touch screen components for OEMs (original equipment manufacturers) and SIs (systems integrators) that integrate touch technology into a wide range of touch-based systems for a number of different markets, including industrial automation, kiosk, retail point-of-sale, and consumer-based products such as personal digital assistants (PDAs) and mobile phones.

Touch International will utilize the DMC factories for the company's high-volume, low-cost manufacturing, which includes touch screens for end products such as PDAs and point-of-sale systems. Touch International's Austin-based Custom Solutions Center will continue to focus on the design and manufacture of custom touch screens for a wide range of industries, including the industrial, military, medical, and aerospace markets. The Custom Solutions Center recently relocated in order to expand production capacity to meet backlog demands and facilitate growth.

About DMC

DMC Co., Ltd. Is an input device manufacturer specializing in resistive touch screens and membrane switches.

For additional information www.DMCcoltd.com/english

About Touch International

Founded by industry veterans, Touch International, Inc. is a privately held, worldwide supplier of high-quality touch screen components. Through its expanded manufacturing facilities, Touch International is able to offer a wide variety and rapid delivery of lower-priced, high-reliability products, based on customer needs and specifications. Touch International is headquartered in Austin, with five factories strategically placed around the globe, and additional sales and support offices on four continents.

For Information, Contact:
Anne Ahola-Ward, Touch International
Phone: 512.832.8292x310
Email: aahola-ward@touchintl.com
Touch International