The Board of Directors of HOLTEK approved the financial results of H1 2006

July 18, 2006

Accumulated sales from January to June 2006 were NT$1,946.1 million, showing a 18% increase compared with the sales of the same period in 2005. The average gross margin was 45%, higher than 41% of same period in 2005. It was mainly due to the product mix towards MCU shipment and the enhancement of R&D.

In H1 2006, the pre-tax earnings were amounting to NT$545 million, increased by 53% YOY, and the accumulated earning after tax were amounting to NT$519 million, increased by 52% YOY. The earnings per share of H1 2006 were NT$2.63 for pre-tax and NT$2.5 for after-tax, which consisted of NT$1.15 in 1Q 2006 and NT$1.35 in 2Q 2006.

The breakdowns of each product line were 40% of the total sales for standard MCU ICs, 30% of the total sales for consumer ICs, 14% of the total sales for PC peripheral ICs, 6% of the total sales for memory ICs, 6% of the total sales for communication ICs, and 4% of the total sales for other ICs. Additionally, together with the sales of embedded MCU ICs, the total MCU sales had reached to 60% of the total sales in H1 2006.