March 31, 2004, Hsinchu, Taiwan - Silicon Integrated Systems Corporation (SiS), a leading supplier of core logic chipsets, announced today that its Board of Directors has named Mr. Daniel Chen to replace Michael Chen as President & CEO of SiS. Michael Chen has decided to leave the position so that he can better focus his attention on research and development as the company's Chief Technology Advisor. The reorganization will be effective from April 1, 2004.

Daniel Chen most recently served as Chairman of ITE Tech. Inc., and has over 23-years of experience in the computer, communication and IC industries. Before joining ITE, he was Vice President of United Microelectronics Corporation's (UMC) Second Business Unit, responsible for the Computer & Communication Product Divisions, as well as operations of UMC's Fab I. Under his guidance at UMC, he helped expand the global market share of the company's X86 chipset product line to 28%. Prior to joining UMC in 1982, Daniel worked for Hitachi Taiwan as a sales manager. He holds several patents in both Taiwan and the USA.

Ever since UMC became a major SiS shareholder early last year, the company has gone through a seamless re-engineering and transition process. XGI (XGI Technology Inc.) was successfully spun off from SiS to pursue its discrete graphic IC business on June 1. Another SiS subsidiary, SiSMC (SiS Microelectronics Corp.) was spun off at the end of 2003 as a pure 8-inch foundry to better deal with the intense competitive forces in the IC manufacturing industry. SiS has since returned to its original fabless business model .

John Hsuan, Chairman of SiS, stated, "Under Michael Chen's leadership, and with the hard work of all SiS employees, we have accomplished much in the industry. SiS became No. 2 in worldwide market share for the Intel-platform chipset, second only to Intel. SiS also won a major contract for Microsoft's next generation gaming console, the XBox II. We have broken sales records with NT$16.7 billion in sales and a profit of NT$204 million in the year 2003, successfully recovering from the recession of the past three years. Currently, we are the only profitable publicly listed PC chipset company in Taiwan. With today's announcement, Michael will dedicate his expertise entirely to chipset R&D. On behalf of SiS's Board of Directors, we respect his decision and thank him for his tireless efforts over the past 15 years. The new president and CEO, Mr. Daniel Chen, has a strong track record in the industry with abundant technical knowledge, solid management capability, broad customer relationships and a unique perception of market trends and business strategy. We are confident this change will not only result in better customer satisfaction with our products and services, but also enhance the company's market competitiveness going forward."