Taipei, May 11, 2005 – SiS announced today plans to invest over NT$165 million long-term in VXIS Technology Corp. in a bid to increase its competitiveness and profitability in the video chip market for information appliance and consumer electronics products.

SiS has devoted its efforts to computer chip development, and its product applications extend to personal computers, multimedia, network communications and information appliances. SiS' advanced chip design and technical integration abilities have also been recognized by their international clients and other global organizations. In order to continue integrating its resources, and to expand and enter the consumer electronics product markets, SiS has allocated NT$165 million in cash capital for the VXIS Technology Corp.

VXIS Technology Corp was founded in February 1999, with the D-Link Corporation and Venture Capital Company as its corporate shareholder. The company is located in the Hsinchu Science-based Industrial Park, and focuses on the development of chips for digital video imaging systems. VXIS has already successfully developed products including video decoder, video deinterlacer, and advanced video capture ICs. In July 2004, VXIS released a video processing chip for small-size flat-panel screens, the VX1818. The chip is currently the only one on the market to integrate a video decoder, T-CON (Timing Controller) and OSD (On Screen Display) functions as a completely integrated solution for small flat-panel display monitors.

With enormous market opportunities in the future for video products, the two companies will work together to develop and market a wide range of chips for video home appliances and consumer products. SiS plans to integrate VXIS’ advanced technical resources and excellent R&D teams, while the two companies mutually sharing all intellectual property rights. SiS is positioning himself for the future digital-home applications market, which includes products such as digital TV, LCD TV, progressive-scan TV, multimedia monitors, scanning transformer devices, digital cable TV, digital satellite TV and home telephone networks.