Sunplus to Dispose STB Chip Business

Hsinchu Science Park, Taiwan, January 20, 2015 - Sunplus Technology Co., Ltd. ("Sunplus" or "the Company") (TAIEX: 2401, LSE: SUPD) today announced it will dispose its assets of STB(set-top-box) product center to Availink Inc. for NT$330 million. Afterwards, Sunplus will invest Availink about NT$295million to acquire 16.67% shareholding of Availink, meanwhile, Sunplus will close its STB product center and cut about 90 jobs.

Mr. Chou-Chye Huang, Sunplus’ Chairman and CEO said, “The competition in STB IC design has become much tougher. We have tried hard to make profits but failed for the products’ averaged selling price and margin are dropping fast. We have made decision to quit the STB IC business, which will reduce our losses and make us be more focused on automotive IC business to improve our profitability.”

The Sunplus’ consolidated net sales in 2014 totaled NT$8,713 million. The consolidated net income of Sunplus from January to September in 2014 totaled NT$460 million, and the consolidated earnings per share of first three quarters in 2014 were NT$0.63, which increased 343% compared to the same period in 2013.

The transaction is expected to close in the first quarter of 2015.

About Sunplus

Sunplus Technology Co., Ltd., established in 1990, is a leading provider of multimedia IC solutions for DVD players, portable DVD players, Automotive DVD/CD players and HD Set-Top-Boxes. Meanwhile Sunplus is offering high-speed I/O IP, high performance data conversion IP, and analog IP for a broad range of applications on consumer, portable, and connected devices for Sunplus has been accumulating strong IP technologies on consumer and multimedia segments. Sunplus is headquartered in Taiwan and has service offices in Hong Kong, Shanghai, Shenzhen and Chengdu. For more information, please visit Sunplus website at www.sunplus.com.