Hsinchu Science Park, Taiwan, R.O.C., December 8th, 2006 - Sunplus Technology Co., Ltd. (TAIEX: 2401, LSE: SUPD) today held its 3rd shareholders' extraordinary general meeting at 9:00AM December 8th, 2006 in the Association of Industries in Hsinchu Science Park. During the meeting, the shareholders approved return of capital NT$5,11billion to shareholders.

According to the resolution, total cash NT$5,114,357,580 will be returned to shareholders and there will be 511,435,758 shares reduced after return of capital. Based on the outstanding 1,022,871,515 share on 2006/10/18, approximately NT$5 per share will be paid to shareholders, representing approximately 50% reduction from its original 1,022,871,515 outstanding shares on 2006/10/18. The GDR shareholders will enjoy same paid-out rate with common shareholders while every 1GDR represents 2 common shares.