Press Release
2006.03.13
Sunext and Philips Signed Licensing Agreement for Optical Drive Semiconductor Technology
Hsinchu Science Park, Taiwan, R.O.C. and Eindhoven, The Netherlands, March 13th, 2006 - Sunext Technology Co., a subsidiary of Sunplus Technology Co., Ltd. (TAIEX: 2401, LSE: SUPD) and Royal Philips Electronics (NYSE: PHG, AEX: PHI) today announced that the two companies have completed an agreement relating to the transfer of Philips Optical Disc Drive (ODD) semiconductor technology and licensing of related patents. Agreements were also made providing for related design and manufacturing services.

The technology license granted to Sunext is exclusive in the area of the design, implementation, manufacture and sale of IC's and solutions for PC ODD and Home Entertainment DVD Recorders. Related Philips' patents are licensed on a non-exclusive basis.

Sunext will sell and support products produced with the Philips ODD technology transferred by this agreement under the Sunext brand name. DVD recordable semiconductor products are available immediately, are currently in high volume production with leading ODD suppliers and are in use by major PC OEMs. Blue laser recordable products are sampling today and are expected to be in volume production by mid-2006. As part of the agreement, Philips shall also receive a minority share in Sunext.

"We are excited by the opportunities created by this partnership between Philips and Sunext. We are confident that joining of both companies' technical and market strengths will significantly improve the innovation speed and product portfolio to enhance the success in the IT and Consumers markets and further improve the support to key customers." said Giel Rutten, Senior Vice President and General Manager, Philips Semiconductor, Home Business Unit.

"By leveraging Philips leading ODD technology and Sunext time-to-market and efficiency, there is a promising future for Sunext to expand its market," said Chou-Chye Huang, Chairman of Sunext and Sunplus. "In addition, we expect significant long term derivative benefits to Sunplus in the Home Entertainment market."

Dr. Phil Mak, President of Sunext added: "Philips technology is renowned worldwide for its performance and quality. We look forward to using our combined strength to increase volume and profit in today's DVD markets, and to give us an early lead in tomorrow's Blue-laser products."

About Royal Philips Electronics
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 30.4 billion in 2005. With activities in the three interlocking domains of healthcare, lifestyle and technology and 159,200 employees in more than 60 countries, it has market leadership positions in medical diagnostic imaging and patient monitoring, color television sets, electric shavers, lighting and silicon system solutions. News from Philips is located at www.semiconductors.philips.com

Philips Press Contact:
Europe:
Marijke Sas
Tel: +31 40 272 2091
E-mail: marijke.sas@philips.com
USA:
Rebecca Samuel
Tel: +1 408 474 8769
E-mail: rebecca.samuel@philips.com
Asia Pacific:
Terry Chiang
Tel: +886 2 3789 2821
E-mail: terry.chiang@philips.com

About Sunext
Sunext Technology Company Limited, with headquarters in Hsinchu, Taiwan, is privately held and a leading supplier of semiconductor products for Optical Disc Drive (ODD) applications. Sunext was formed in 2003 to capitalize on global demand for ODD silicon and operates design centers in Hsinchu, Taiwan; Taipei, Taiwan; Sunnyvale, USA; and Shanghai, PRC. For further information visit the Sunext website at: www.sunext.com

Sunext Press Contact:
Julie Huang
Tel: +886 3 666 1311 ext. 3601
E-mail:Julie@sunext.com

About Sunplus

Sunplus Technology Co., Ltd., established in 1990, is a leading provider of multimedia IC solutions for DVD players, portable DVD players, Automotive DVD/CD players and HD Set-Top-Boxes. Meanwhile Sunplus is offering high-speed I/O IP, high performance data conversion IP, and analog IP for a broad range of applications on consumer, portable, and connected devices for Sunplus has been accumulating strong IP technologies on consumer and multimedia segments. Sunplus is headquartered in Taiwan and has service offices in Hong Kong, Shanghai, Shenzhen and Chengdu. For more information, please visit Sunplus website at www.sunplus.com.

Sunplus Contact

Spokesperson

Wayne Shen
Vice President
+886-3-5786005#2350
wayne@sunplus.com

Deputy Spokesperson

Ann Lai
PR/IR Manager
+886-3-5786005#2202
ir@sunplus.com