Hsinchu Science Park, Taiwan, R.O.C., August 25th, 2006 - Sunplus Technology Co., Ltd. (TAIEX: 2401, FTSE: SUPD) today announced that the Board Meeting proposed to split the company into three fabless IC companies at December 1st, 2006. There will be two new companies spun off, Controller & Peripheral BU as one of them and Personal Entertainment BU plus Advanced BU as the other one. Home Entertainment BU and core IPs development will be continued in Sunplus. The Board also proposed a Shareholders' Meeting on October 13th, 2006.

The re-organization on December 1st, 2005 changed the company from functional based to profit central SBU by product lines which including Home Entertainment BU, Controller & Peripheral BU, Personal Entertainment BU, Advanced BU and LCD Program. The LCD Program then spun off as Orise Technology on March 31, 2006. The Board Meeting today proposed to split Sunplus into three companies: the Home Entertainment BU to be continued in Sunplus; Controller & Peripheral BU spun off into one new start-up subsidiary 100% owned by Sunplus; and Personal Entertainment BU plus Advanced BU spun off as another one.

"We are gaining some benefit from the SBU after the re-org last December," said Chairman Chou-Chye Huang, "the product development strategy has been consolidated. We believe that we can be more focused and efficient to split the SBUs into independent companies, while keeping HE BU and the core intellectual properties in Sunplus that will be licensed to affiliates to maximize its value.

Sunplus will spin-off the Controller & Peripheral BU into its subsidiary CP Technology Co., Ltd. ( "CP Technology", a temporary English name), and CP Technology will gather the related assets and liabilities of the original business from Sunplus Controller & Peripheral BU. Based on Sunplus financial results on June 30th, 2006 as final accounting date. Sunplus will spin-off the Sunplus Controller & Peripheral BU related assets, NT$445,239,000 and liabilities NT$137,239,000, which net value are NT$308,000,000 to CP Technology. The capital of the spin-off company CP Technology will be NT$220,000,000 and Sunplus will acquire the total 22,000,000 shares, which net price are NT$14per share. CP Technology will be 100% hold by Sunplus.

Personal Entertainment BU and Advanced BU in Sunplus will be spun off into Sunplus' subsidiary PE3G Technology Co., Ltd. ("PE3G Technology", a temporary English name), and PE3G Technology will gather the related assets and liabilities of the original business from Sunplus Personal Entertainment BU and Advanced BU. Based on Sunplus financial results on June 30th, 2006 as final accounting date. Sunplus will spin-off the related assets NT$2,182,329,000 and liabilities NT$502,329,000, which net value are NT$1,680,000,000 of Personal Entertainment BU and Advanced BU to PE3G Technology. The capital of the spin-off company PE3G Technology will be NT$1,200,000,000 and Sunplus will acquire the total 120,000,000 shares, which net price are NT$14 per share. PE3G Technology will be 100% hold by Sunplus.

After Sunplus shareholders approve this spin-off, the record date will be joint-decided by Board meeting of Sunplus, CP and PE3G. So far the tentative record date will be on December 1st, 2006.

Sunplus will hold extraordinary shareholders' meeting to discuss this spin-off at 9:00a.m. October 13th, 2006 in Room203 of the Association of Industries in Science Park in Hsinchu. The shareholders' register shall be closed for registration of transfer from September 13th, 2006 through October 13th, 2006.

For further press information, please contact
Sunplus:
Ann Lai
Tel. +886 3 578 6005 ext. 2202
E-mail: annlai@sunplus.com