Hsinchu, Taiwan, December 25, 2001 - Sunplus Technology (Sunplus)(TSE:2401, FTSE:SUPD) today announced the successful completion of the merger of Grandtech into Sunplus. Meanwhile, the board of directors approved the company's reorganization to establish the Imaging Business Unit and the appointment of four Vice Presidents.

Sunplus President Mr. Yarn-Chen Chen stated that since the merger was announced in August, with the similar company culture, all the employees of Sunplus and Grandtech have easily transitioned into a smooth- working team. Immediately upon completion of the merger, Sunplus' paid-in capital increased to 544.7 million shares and the amount of employees reached 512. Human resources are the most valuable assets to an IC design company. Through the merger, Sunplus acquired many excellent and experienced professionals in the industry. It will enable Sunplus to gain stronger competitive advantages for long term development.

The board of directors also announced the company's reorganization today, to set up a new "Imaging Business Unit" which is comprised of the R&D team of Grandtech. Its main product lines are scanner controller Ics and Digital Still Camera chipsets. Mr. Eric Chen, the former Chairman of Grandtech, is appointed the vice president and responsible for its operation. In addition, the board of directors appointed the other Vice Presidents and Director as well. The responsibilities of Sunplus management team are as followsˇGMr. Hou-Shien Chu, former Director was as named Vice President to take responsibility of the Operation UnitˇFMr. Chin-Nai Tseng, former Director was named the Vvice President to be in charge of the Consumer Business UnitˇFMr. Ho-Jung Ou, former Director was named Vice President and responsible for the Multimedia Product Business Unit ˇF Mr. Te Chung Liu the former Director of the Technology Development Division was named the Audio Technology. Director and he will report to Mr. Yarn-Chen Chen directly.

Sunplus Chairman Mr. Chou-Chye Huang stated, "The merger is the best "win-win" decision. The synergy of the consolidation should produce more substantial results than could be achieved by Sunplus or Grandtech separately. It will enhance our competitive advantages in the global market." "We believe that the merger further solidifies Sunplus' leading position in the consumer electronic industry and is in the best short- and long-term interests of all our shareholders."