The Board of Directors of HOLTEK approved the financial results of Q3 2007

October 22, 2007

The Board of Directors of Holtek today approved the financial results of Q3 2007.

Accumulated sales from January to September 2007 were NT$ 2,792 million, showing an 6.9% decrease compared with the sales of the same period in 2006. Mainly due to the product mix towards MCU shipment and the enhancement of R&D, the average gross margin of the period from January to September 2007 was 45.7%, higher than 45.2% of same period in 2006；the pre-tax earnings were amounting to NT$ 748 million, representing an 14.5% decrease YOY, and the accumulated earning after tax were amounting to NT$ 658 million, also showing an 19.3% decrease YOY. As a result, the earnings per share for the period from January to September 2007 were NT$ 3.45 for pre-tax and NT$ 3.04 for after-tax based on the current outstanding shares. The accumulated earnings per share of NT$ 3.04 consists of NT$ 0.92 in Q1, NT$ 0.97 in Q2 and NT$ 1.15 in Q3.

The breakdowns of each product line were 42 % of the total sales for standard MCU ICs, 32 % of the total sales for consumer ICs, 16 % of the total sales for PC peripheral ICs, 4 % of the total sales for communication ICs, 3 % of the total sales for memory ICs, and 3 % of the total sales for other ICs. The total MCU sales which included the sales of standard MCU ICs and embedded MCU ICs accounted for 62.6 % of the total sales for the period from January to September 2007.

Recent years have seen Holtek’s design activities focused in the direction of microcontroller development. From a standpoint of advanced functionality or increased product range, Holtek has developed a comprehensive device range to match the requirements of both customer and market alike. Reflecting this, Holtek’s recent release of Flash Memory microcontrollers have responded to recent application requirements for this form of memory type. These not only offer direct and convenient product upgrade capabilities, but are also in line with European and US market area trends. End of year new device releases will also include C/R –F touch sensor solutions, CCTV devices and extremely low power TinyPower A/D type microcontrollers as well as fingerprint recognition application controllers, all of which are aimed at large market opportunities. Holtek Semiconductor fully intends to bridge the connection between product market trends and those of the microcontroller market, showing Holtek’s resolution to become a major and world-class professional microcontroller provider. Finally, to continue in its objective of creating long-term value, the goal of increased competitiveness remains the firm commitment of the Holtek management operations group.

HOLTEK SEMICONDUCTOR INC.
October 17, 2007
Spokesperson: Mr. Armstrong Tsai
Tel: 886-3-5631999