H1 2007 financial results approved by the Holtek Board of Directors together with cash and stock dividend details announcement. July, 18 2007

July 19, 2007

Holtek wishes to formally announce board approval for its financial results for the first half of 2007. During this January to June 2007 period, accumulated sales amounted to NT$1,795.3 million, showing a 7.7% decrease when compared with sales for the same period during 2006. The average gross margin was 46%, higher than the figure of 45% for the same period in 2006.

During this period, the pre-tax earnings amounted to NT$483 million, showing a decrease of 11.3% YOY. The accumulated earning after tax amounted to NT$410 million, which is a decrease of 20.9% YOY. The earnings per share during this period was NT$2.27 pre-tax and NT$1.93 after-tax, consisting of NT$0.94 during the 1Q 2007 and NT$0.99 during the 2Q 2007.

A breakdown analysis of each product line shows 42% of total sales in the area of standard MCU ICs, 32% of total sales in the consumer IC area, 16% of the total sales for PC peripheral ICs, 5% of the total sales for communication ICs, 2% of the total sales for memory ICs and 3% of the total sales for other ICs. Together with the sales of embedded MCUs, the total MCU sales comprises 63% of the total sales during the 2007 first half period.

Holtek today also announced their dividend details for common shares. Due to an increase of outstanding shares from the execution of employees' stock options, the dividends for the 2006 fiscal year were adjusted for stock dividends of NT$ 0.09950253 and cash dividends of NT$ 3.68855799 per common share to shareholders. Both the ex-dividend and ex-right day has been set for August 11 2007, for which the shareholders' register will be closed for registration for transfer from August 7 through August 11 2007. For entitlement for the above-mentioned dividends, any person acquiring Holtek's shares without being registered as a holder should apply for shareholder registration with the Chinatrust Transfer Agency by August 6, 2007. The NT$ 3.68855799 cash dividend per common share will be paid on August 31, 2007.

July, 18 2007