Press Release
Sunplus to Invest Sunplus Core for TV IC Solutions

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.