The Board of Directors of HOLTEK approved the financial results of H1 2005

July 20, 2005

Accumulated sales from January to June 2005 were NT$1,647.4 million, showing a 15% decrease compared with the sales of the same period in 2004. The average gross margin was 41%, higher than 38% of same period in 2004. It was mainly due to the product mix towards MCU shipment and the enhancement of R&D.

In H1 2005, the pre-tax earnings were amounting to NT$356 million, decreased by 2% YOY, and the accumulated earning after tax were amounting to NT$341 million, decreased by 4% YOY. The earnings per share of H1 2005 were NT$1.83 for pre-tax and NT$1.75 for after-tax, which consisted of NT$0.52 in 1Q 2005 and NT$1.23 in 2Q 2005.

The breakdowns of each product line were 39% of the total sales for standard MCU ICs, 31% of the total sales for consumer ICs, 10% of the total sales for PC peripheral ICs, 7% of the total sales for memory ICs, 6% of the total sales for communication ICs, and 7% of the total sales for other ICs. The standard MCU ICs accounted for 39% of the total sales in H1 2005 compared to 33% of the total sales in H1 2004. Additionally, together with the sales of embedded MCU ICs, the total MCU sales had reached to 55% of the total sales in H1 2005.