Hsinchu Science Park, Taiwan, R.O.C., October 19th, 2006 - Sunplus Technology Co., Ltd. (TAIEX: 2401, FTSE: SUPD) today announced that the Board Meeting is proposing the capital reorganisation and called an extraordinary shareholders' meeting, to be held on December 8th, 2006, to obtain shareholders approval for the proposed return of capital of approximately NT$5.1 billion cash to shareholders.

Under the proposed return of capital, 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.

Sunplus will hold an extraordinary shareholders' meeting to discuss this proposal at 9:00am on December 8th, 2006 in Room203 of the Association of Industries in Science Park in Hsinchu. The shareholders' register shall be closed for registration of transfer from November 9th, 2006 through December 8th, 2006.