Syntax-Brillian Announces LCoS Joint Venture in China

TEMPE, Ariz - March 8, 2006 - Syntax-Brillian Corp. (Nasdaq: BRLC), a manufacturer and marketer of LCD and LCoS(TM) HDTVs and digital entertainment products, today announced that it has entered into an agreement in principle to form a joint venture in China for the manufacture of LCoS(TM)-based light engines.

Syntax-Brillian and Henan Costar Group Co., Ltd., a wholly owned subsidiary of China South Industries Group Corp., a state-owned enterprise directly under the administration of China's Central Government ("Costar"), have agreed in principle to establish a joint venture to assemble and sell LCoS(TM) light engines. Costar will own 51% of the joint venture entity, for which a name has not yet been selected, and Syntax-Brillian will own 49%. The purpose of the joint venture is to assemble and sell LCoS(TM)-based light engines to TV manufactures initially in China and eventually to the rest of the world. The parties have agreed to use Syntax-Brillian's proprietary LCoS(TM) Imagers exclusively in the light engines to be manufactured by the joint venture.

Syntax-Brillian will obtain its 49% ownership, valued at approximately $2.45 million, in the joint venture through the contribution of light engine technology and certain light engine manufacturing equipment. Costar will contribute assets, including cash and a manufacturing facility located in China's Henan Province, valued at approximately $2.55 million. The actual formation of the joint venture entity is subject to execution of a final joint venture agreement. The parties have signed a short-form agreement which has been ratified by the boards of directors of the respective parties. It is anticipated that the final joint venture agreement will be executed by March 31, 2006.

The parties anticipate that the manufacturing equipment will be installed, product verification testing will be completed, and commencement of limited production will occur by May 31, 2006, with commencement of volume production in July 2006. The targeted production volume of the joint venture is 300,000 light engines annually. Additionally, Costar believes that at least two major Chinese domestic television manufacturers will adopt the light engine design before Sept. 30, 2006.

"The significance of this joint venture to us is fourfold," said Vincent F. Sollitto, Jr., Syntax-Brillian's chairman and chief executive officer. "First, it provides a volume source of light engines for our use domestically as we introduce the Olevia-branded LCoS(TM) RPTV this year; second, we have secured a high volume customer for our proprietary LCoS(TM) Imagers; third, we now have a vehicle to tap the burgeoning RPTV market in China as they prepare for the Beijing Olympics in 2008; and fourth, it gives us a platform to be the high volume light engine supplier to other television manufacturers throughout the rest of the world," he continued.

About Syntax-Brillian Corp.
Syntax-Brillian is one of the world's leading manufacturers and marketers of LCD and LCoS(TM) HDTVs and digital entertainment products. The company's lead products include its Olevia brand of widescreen HDTV-ready LCD TVs -- one of the fastest-growing global TV brands -- and its next-generation Gen II LCoS(TM) 720p and 1080p rear-projection HDTVs for the high-end video/audio market. Syntax-Brillian's global supply chain, Asian operations and North American sales channels position the company as a market leader in consumer and high-end HDTV and digital entertainment products.

About Henan Costar Group Co., Ltd and China South
Henan Costar Group., Ltd., is a wholly owned subsidiary of China South Industries Group Corp. ("China South"). China South is a state-owned enterprise directly under the administration of China's Central Government and an investment institution authorized by the State Council. China South has more than 40 industrial enterprises including four research institutes and three research and development facilities, and has established production facilities and marketing offices in more than 30 countries with products distributed to more than 100 countries worldwide. Engaged in the five main fields of special products, automobiles, motorcycles, vehicle components, and optical-electronic products, China South is playing a very important role in China's national economic development.