Hsinchu Science Park, Taiwan, December 17, 2012 - Sunplus Technology Co., Ltd. ("Sunplus" or "the Company") (TAIEX: 2401, LSE: SUPD) today announced it will invest NT$200 million to Sunplus Core Technology Co., Ltd. (Sunplus Core)  for developing TV IC solutions, meanwhile, Sunplus will license its IC products and technologies regarding TV application to Sunplus Core afterwards.

Sunplus Core used to be devoted to developing 32bit embedded RISC processor and related SoC platform, later it will turn to focus on TV IC solutions. Besides Sunplus, Silicon Integrated System Corp., (SiS) will joint-invest NT$200 million to acquire 50% of Sunplus Core’s equity equal to Sunplus’ shareholding. The combination of technologies and expertise from Sunplus and SiS will enable Sunplus Core to deliver TV IC solutions with reduced time-to-market and improved operating efficiency, which benefit the shareholders for both companies.

“We have to change, especially during the tough time,” said Chou-Chye Huang, Sunplus’ Chairman and CEO. “TV IC market is such competitive that some of the competitors have quit or merged, and it‘s time for Sunplus to review and make a change. This joint-investment combining the design capabilities and capital allocation from both companies will create a superior position to meet TV IC market and make better return for our shareholders in the future.”

The transaction is expected to close in the first quarter of 2013.

About Sunplus

Sunplus Technology Co., Ltd. (TWSE: 2401, LSE: SUPD), established in 1990, is a leading chip provider for multimedia and automotive applications such as DVD player, portable DVD player, home entertainment audio products, car infotainment and advanced driving assistance system(ADAS). 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 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

Joseph Chuang
Administration Div. Director
+886-3-5786005#3120
pr@sunplus.com