The C&P BU will be transferred to 100% owned subsidiary CP Technology Inc.*; meanwhile the PE BU and Advanced Bu will be spun off to another 100% owned subsidiary PE3G Technology Inc.*.

Sunplus will keep developing more IC solutions in home entertainment area and the core intellectual properties that will be licensed to affiliates to maximize its value.

The tentative record date of spin-off will be on December 1st, 2006.

* CP Technology and PE3G Technology are temporary English names.

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.

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