International DisplayWorks Announces Strategic Alliance With Integrated Solutions Technology; Signifies Key Initiative for IDW'

International DisplayWorks, Inc. (IDW) (NASDAQ:IDWK)
today announced that it has formed a long-term strategic alliance with
Taiwan-based Integrated Solutions Technology, Inc. (IST). Through this
alliance, IDW and IST will collaborate and share resources to create a
portfolio of products aimed at optimizing cost-performance liquid
crystal module (LCM) solutions for the small- to medium-sized liquid
crystal display (LCD) panel market. Specifically, in the near term,
IDW has agreed to increase the utilization of existing IST driver
integrated circuits (ICs) embedded in IDW's liquid crystal modules.
IDW and IST will engage in the joint development and improvement of
the most competitive LCMs for applications in electronic appliances,
industrial instruments, medical equipment, desk-top and cellular phone
displays, toys and games, portable video products and other
applications.
   This strategic alliance represents the initial steps toward
executing a vertical integration strategy for IDW, and the joint
development between IDW and IST is expected to result in cost savings
for IDW over the next six months. Over the long term, management
anticipates developing a series of products aimed at optimizing
cost-performance of LCMs in the markets served by IDW.
   Dr. Steve Su, Chairman of IST, commented, "Partnering with IDW on
the development of LCM solutions is an ideal blending of our
respective expertise, and will help both companies to increase market
share, access new opportunities and drive margin improvements.
Aligning our Companies with the product development efforts of our
customers earlier in the product lifecycle will significantly enhance
our collective value proposition, further differentiating both IST and
IDW in the marketplace."
   To lead the Company's vertical integration strategy, the Company
has appointed Sherif Sweha as its Chief Technology Officer. Mr.
Sweha's career includes more than 20 years with Intel in silicon
design and engineering management. Mr. Sweha recently served as the
Director of Design Engineering in the Flash Memory Group for Intel
Corporation in Folsom, California, where he was responsible for all
design engineering aspects of a $2 billion FLASH memory division
including Product Architecture, Chip Design, Design Automation,
Software Development, Technology Interface, and Investigation of
Alternative Non-Volatile Memory technologies. Mr. Sweha managed more
than 400 employees in four countries and he founded Intel's first IC
Design teams in the Philippines and China.
   Jeff Winzeler, the Company's Chief Operating Officer, commented,
"We recognize the importance of vertical integration as a key
component to IDW's ongoing growth strategy. By actively participating
in the design of the integrated circuits used in our displays, we will
drive additional value to our customers in both functionality and cost
effectiveness. IDW is fortunate to be able to appoint someone of
Sherif's caliber to lead this effort. Sherif has over 23 years of
experience in the integrated circuit industry and brings a wealth of
technical experience to the newly created CTO position. In addition to
his technical talents, Sherif has developed, built and managed high
performing, global organizations during his career. He is the perfect
candidate to lead this aspect of our organization and further
strengthens our senior management team."
   Mr. Sweha added, "The strategic alliance with IST is a milestone
for International DisplayWorks and our overall vertical integration
strategy. Our collective efforts for LCM development will serve to
drive both product differentiation and margin enhancements. IDW has
built a solid reputation for exceptional quality with the lowest price
points in the industry. Additionally, the Company has established an
exceptional technical capability, and I look forward to leveraging
that capability to enhance our value proposition by aligning our
design and manufacturing capabilities with our customers' development
efforts."

   About International DisplayWorks

   International DisplayWorks, Inc. is a manufacturer and designer of
high quality liquid crystal displays, modules and assemblies for a
variety of customer needs including OEM applications. IDW operates
466,000 square feet of manufacturing facilities in the People's
Republic of China (PRC). Sales offices are located in the U.S.,
Europe, Hong Kong, Singapore, and China. Copies of IDW's 10-K and
other documents as filed with the SEC are available through a link on
our web site: www.idwk.com.

   About Integrated Solutions Technology

   Integrated Solutions Technology, Inc., headquartered in Taipei,
Taiwan, specializes in design, development and marketing of driver
integrated circuits and display solutions for small and medium size
LCD modules in various types of handheld electronic equipment
applications. For more information, visit www.ist4u.com.

   NOTE: The foregoing is news relating to International
DisplayWorks, Inc. ("IDW") and contains forward-looking statements,
which are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements. When
used in this release, the words "anticipate," "believe," "estimate,"
"expect" and similar expressions as they relate to IDW or its
management, including without limitation, IDW and its subsidiaries,
are intended to identify such forward-looking statements. IDW's actual
results, performance or achievements could differ materially from the
results expressed in, or implied by these forward-looking statements,
including anticipated cost savings from early design involvement,
customer acceptance of redesigned IC drivers and LCM modules, and
similar risks associated with a vertical integration strategic
alliance. For more detailed information the reader is referred to
IDW's 10-K and other related documents filed with the Securities and
Exchange Commission. This does not constitute an offer to buy or sell
securities by the Company and is meant purely for informational
purposes.