TEMPE, Ariz., Aug. 25 -- Three-Five Systems Beijing Co. Ltd., a wholly owned subsidiary of Three-Five Systems Inc., has signed a strategic agreement that will increase its liquid crystal display (LCD) glass manufacturing capacity by fifty percent worldwide, the company said. The agreement was made with Hebei Jiya Electronics Co. Ltd., a China-based manufacturer of LCD glass. Hebei Jiya Electronics will supply Three-Five Systems with glass for LCD modules as well as set aside a large amount of its glass manufacturing capacity for Three-Five. In return, Three-Five will help Hebei Jiya to advance its LCD glass manufacturing processes. This agreement is significant for us in several ways. First, it allows us to partner with an established and respected Chinese company, said Carl Derrington, Three-Five's chief manufacturing officer and vice president of operations. We are pleased to be working with Jiya and look forward to a relationship that will benefit both companies. Second, the agreement represents a significant step toward our goal of securing strategic sources of supply in the Asian market, where our newest factory and some of our largest potential customers reside. Finally, it allows us to substantially increase our LCD glass capacity in a flexible manner. Three-Five Systems designs and manufactures LCD modules and technology for OEM customers in wireless communications and other markets.