Taipei, Taiwan, July 25, 2007 - ASUS (Ticker:2357) and Ability Co.("AbiCo") (Ticker:2374) have, on 24th July 2007, respectively held their board meetings to approve the strategic alliance of the two companies. ASUS will issue new shares in exchange for the existing shares owned by Ability Investment (AbiCo's major shareholder.) ASUS is expected to own 13% of AbiCo after the share swap. The two companies mutually agree to support ASUS to obtain AbiCo's board seats in order to achieve the goal of strategic alliance. ASUS is a worldwide leading manufacturer in PC motherboard, graphic card, and notebook while AbiCo is a top three DSC OEM/ODM maker in Taiwan. The two companies have complementary core competences in terms of product lines, customers and markets. Through the share swap and by leveraging their respective core competence, the two companies expect to expand their manufacturing scale, customer base, and move into new product lines in an attempt to enhance their shareholders' value.