Science-Based Industrial Park, Hsinchu, Taiwan, R.O.C. January 27, 2003 - Sunplus Technology Co., Ltd. (TSE: 2401, LSE: SUPD) today announced its 2002 yearly financial results. The net sales in 2002 totaled NT$8,636 million, which grew 30.1% compared to 2001. Due to product mix change and price competition, the gross margin declined to 36.4%, which was 40.6% in 2001. The fourth quarter sales were NT$2,143million, gross margin of 4th Quarter was 30.6%.

The net income amounted to NT$2,116 million, and the earnings per share in 2002 would be NT$3.04 based on the current 694.95 million shares. The net income from operations in 2002 added up to NT$ 1,807 million. The R&D expenses in 2002 were 12.2% of the net sales, which was 10.1% in 2001. The increases were caused by more new products development.

(in NT$M) 2002 Amount 2001 Amount YoYChange Net Sales 8,636 100.0% 6,639 100.0% 30.1% Gross Margin 3,141 36.4% 2,697 40.6% 16.5% Operating Income 1,807 21.0% 1,818 27.4% -0.6% Net Income 2,116 2,116 2,132 32.1% -0.8% EPS(NT$)* Based on 694.95 million shares 3.04* 3.07*