Compal Communications Chooses SPIRIT DSP Voice Solution for 3G Video Phone

MOSCOW--Aug. 11, 2006--SPIRIT DSP, the world's leading provider of embedded voice and communication software products, announced today that Compal Communications (CCI), one of the largest ODMs in the world, has licensed SPIRIT's voice solution for its advanced 3G video PDA phone. Compal Communications is expected to ship a total of 83 million handsets in 2006, up 124% on-year, according to the Chinese Commercial Times.

Helping Compal deliver VoIP-enabled 3G video phone SPIRIT licensed TeamSpirit (TM) Mobile voice engine components to integrate into Compal handset to enhance video call's voice. Now Compal handset users will be able to make 3G video calls with uncompromised voice performance. Originally the voice of video call has not been optimized for various mobile portable devices. That's why big and reputable ODMs like Compal are selecting SPIRIT's voice software to make mobile voice in 3G VT clearer.

"After we integrated SPIRIT's voice solution into Compal new 3G video phone, our users immediately benefited from high voice quality", said Compal. "The VoIP 3G VT market demands the highest quality of voice service possible in order to grow fast. Integration, design and deployment process of SPIRIT's voice software was simple and fast for us. And SPIRIT voice quality is uncompromised."

The latest Compal 3G video phone incorporates ARM processor, enabling effective consumption of mobile device resources running the most compact SPIRIT mobile voice solution. SPIRIT's mobile voice engine includes echo and noise canceling, jitter buffer, PLC and vocoders and helps mobile OEMs to quickly deliver mass products for the voice over Wi-Fi market.

3G revenues will reach US$ 118 billion by 2010, and the largest revenue generator predicted to be "Rich Voice", i.e. high fidelity voice with simultaneous transmission of video, images and other forms of personalized data.

"We are very glad to be selected as a provider of mobile voice solution to Compal's advanced 3G video phone. Using SPIRIT mobile voice engine mobile OEMs can quickly deploy VoIP-enabled handsets with superb voice performance over WiFi and 3G" - said Andrew Sviridenko, chairman of SPIRIT DSP

SPIRIT's mobile voice engine (http://www.spiritdsp.com/m_voice_engine.html) ensures the lowest device MIPS and power consumption on ARM9 and ARM9E and delivers the highest quality voice over 3G connections in the noisy environments. Compal deployed SPIRIT voice product along with HTC, Kyocera, Ericsson and other OEMs in Asia and Northern Europe. SPIRIT mobile voice technologies are already utilized in mobile devices now distributed by T-Mobile, Orange, and Vodafone.

About SPIRIT DSP

SPIRIT DSP (www.spiritDSP.com/voip) employs 140 professionals, has been in international software licensing business since 1992. A bootstrap company, SPIRIT has been profitable for 14 years. For the last 10 years SPIRIT's focus is communication, speech and VoIP software products and today SPIRIT counts among its clients Adobe, Agere, Atmel, Compal, Flextronics, Ericsson, HP, HTC, Kyocera, LG, Marconi, MediaRing, Microsoft, National Semiconductor, NEC, Nortel Networks, Oracle, Paltalk, Panasonic, Philips Semiconductor, Polycom, Radvision, Samsung, Siemens, Texas Instruments, Toshiba and Trinity Convergence, among 200+ other communication OEMs and software vendors. Through the brand names SPIRIT communication software is used in over 80 countries and powers more than 100 million voice channels. SPIRIT DSP is a member of major voice-related developer communities, including Intel(R) Developer Network, ARM(R) Connected Community, Philips Nexperia Partnership, TI Third Party Network, TI OMAP Developer Network for Wireless handsets and PDAs. SeeStorm is SPIRIT affiliate for synthetic video conferencing.

About Compal Communications, Inc.

Compal Communication Inc. is a professional ODM company in the wireless field. Compal is expected to ship a total of 83 million handsets in 2006, up 124% on-year, according to the Chinese Commercial Times.The product lines include feature phone, smart phone, PDA phone, GPS device, and VoIP devices. CCI is proficient in wireless device designing. The company is located in Taiwan and owns the manufactory in China.