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For Immediate Release


UNBOUND COMMUNICATIONS, A VTECH COMPANY, ANNOUNCES AGREEMENT WITH YAHOO!

Companies Join to Offer Consumers Enhanced, Affordable Email and Internet Access Through Co-Branded Services, Promotions and Web Site Links


HONG KONG, April 6, 2000 - Unbound Communications, a US subsidiary of VTech Holdings Ltd (SEHK:303; London SE:VTH; ADR: VTKHY), announced an agreement with Yahoo! Inc. (Nasdaq: YHOO), a global Internet communications, commerce and media company to deliver Yahoo!'s Web content and services on co-branded VTech/Yahoo! Internet appliances. The new alliance offers consumers greater levels of portability and ease of use for email and the Web, and will feature a variety of shared resources, including co-branded services, promotions and Web site links.

"We are pleased to embark in this endeavor with Yahoo!, as we share a vision-to provide easy-to-use, approachable, friendly and fun Internet products and services for our consumers," said Jude Dieterman, president, Unbound Communications. "We hope to change the way consumers connect to the Internet and email applications-allowing for greater access, portability and affordability."

Co-branded VTech and Yahoo! appliances are scheduled to appear on offline retail store shelves this summer in the United States and on Yahoo! Store (http://store.yahoo.com), including new models of VTech's e-Mail PostBox series. These appliances will be fortified Yahoo!, including direct links to Yahoo! Mail (http://mail.yahoo.com) and Yahoo! Address Book (http://address.yahoo.com). New and existing Yahoo! consumers will have portable access to the Internet and their Yahoo! Mail accounts. The co-branded units will be priced between US$79.99 and US$149.99, with Unbound monthly access fees starting at under US$10. In addition, direct links will be established between Unbound Communications (unboundcom.com) and Yahoo! (http://www.yahoo.com); and a variety of promotions will be co-sponsored by the companies.

The co-branded appliances are designed with consumers' diverse needs in mind. For some, they will be an add-on to a home computer, permitting users to check email easily at home or away from home with the touch of a single button-much like current telephone answering machines. For others who currently are without personal computer access, these units will allow them to link to the Internet and to exchange emails with friends and family members, even when traveling.

"The VTech appliances allow new and existing Yahoo! consumers to easily enjoy the freedom of portable email and address book services," said Drew Lanham, senior director of business development, Yahoo! Inc. "Additionally, the VTech appliances offer Yahoo! a retail channel to reach new audiences. VTech is an important alliance for Yahoo!, as we continue to expand the reach of specific Yahoo! services to new and existing Yahoo! consumers seeking to bypass the complexity and cost of a PC. Working with VTech to distribute basic Yahoo! services to Internet appliances is an extension of our Yahoo! Everywhere strategy, to enable customers to gain access to Yahoo! on pagers, data phones, personal digital assistants, and an array of other alternative and wireless devices."

Yahoo! launched the Yahoo! Everywhere initiative to enable consumers around the globe to access their Yahoo! content and services on pagers, data phones, personal digital assistants, and an array of other alternative and wireless devices.

About Yahoo!
Yahoo! Inc. (NASDAQ: YHOO) is a global Internet communications, commerce and media company that offers a comprehensive branded network of services to 120 million individuals each month worldwide. As the first online navigational guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The company also provides online business services designed to enhance Yahoo!'s clients' Web services, including audio and video streaming, store hosting and management, and Web site tools and services. The company's global Web network includes 22 World properties. Yahoo! has offices in Europe, the Asia Pacific, Latin America, Canada and the United States, and is headquartered in Santa Clara, Calif.

About Unbound Communications
Unbound Communications is a member of the VTech group of companies, focusing on Internet and email based technology. VTech (SEHK:303; London SE:VTH; ADR: VTKHY) is one of the world's leading consumer electronics corporations that designs, manufactures, markets and sells electronic learning and telecommunication products through its extensive international distribution network. Founded in Hong Kong in 1976, VTech currently has a presence in 13 countries and more than 20,000 employees, including over 1,000 R&D professionals. The group has invested over US$48 million in R&D in FY99 and launches more than 80 innovative and high quality products each year. VTech is the leading provider of 900mhz telephones in the U.S. with over 50 percent market share, and the global leader of electronic learning toys with over 70 percent market share.

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Yahoo! the Yahoo! logo and Yahoo! Everywhere are registered trademarks of Yahoo! Inc. All other names are trademarks and/or registered trademarks of their respective owners.

VTech Media Contacts  
Angela Lee, VTech Holdings LTD
Angel Lau, Forrest International Limited
852-2680-1704 (angela_lee@vtech.com)
852-2501-7903 (lauangel@forrestintl.com.hk)

Yahoo! Media Contacts  
Sarah Ross, Yahoo! Inc.
Helena Maus, Niehaus Ryan Wong, Inc.
408-530-5172 (sross@yahoo-inc.com)
650-827-7030 (helena@nrwpr.com)

Unbound Communications Media Contacts  
Jude Dieterman, Unbound
Gary Rudnick, Golin/Harris International
Kate Peters, Golin/Harris International
847-215-9700 (http://www.vtechworld.com)
312-729-4243 (grudnick@golinharris.com)
312-729-4161 (kpeters@golinharris.com)

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 This news release contains forward-looking statements or predictions. These statements represent our judgment as of this date and are subject to risks and uncertainties that could cause actual results or events to differ materially from those expressed in such forward-looking statements. Potential risks and uncertainties include, without limitation, those associated with economic conditions, government regulations and delays or other problems with product development. These and other factors are discussed in more depth in both companies' filings with the SEC, copies of which may be accessed through the SEC's World Wide Web site at http://www.sec.gov.