Oak Provides Optical Storage Technologies to Samsung-Sunext Venture

4/14/2003 - Oak Technology, Inc., (Nasdaq: OAKT) announced the licensing of certain optical storage technologies to Samsung Electronics Co., Ltd., with the consent from Sunplus Technology Co., Ltd. (TSE: 2401), to enable a partnership between Samsung and Sunext Technology Co., Ltd. of Taiwan to jointly develop and manufacture leading-edge technology and next generation products in optical System-on-a-Chip (SOC) solutions. Sunext is a new spin-off company created by Oak and Sunplus with operations in California and Taiwan.

This agreement between Oak and Samsung represents the achievement of another milestone in Oak's strategy to leverage the assets of its strong optical storage technologies and business, and also bring a close cooperation opportunity between Samsung and Sunplus. The introduction of Samsung to this partnership provides not only the related IP licensing fees to Oak and Sunplus respectively, but also bolsters Oak and Sunplus's optical storage strategy and more importantly, provides a better potential return for Oak's investors through the company's investment in Sunext.

Samsung has already been manufacturing a new integrated CD-RW SOC for Oak, which Sunext will now be bringing to market. The strategic partnership between Samsung and Sunext accelerates design development, leverages R&D investments and provides for high-performance and more cost-effective SOC solutions for optical drive manufacturers.

The trend of increasing consumer storage, management, and delivery of digital content on optical media is reflected in significant market growth and opportunity. Independent market research firm IDC estimates over 105- million optical recordable controllers (CD-RW, Combo, Recordable DVD) will be shipped in 2003, increasing to 130- million units in 2004.

"Oak's optical technology expertise represents the best-in-class benchmark," said Dr. H. K. Lim, president of Samsung Electronics System LSI Division. "This partnership will strengthen our overall relationship and provide each company with significant development productivity and competitive market advantages."

"We are very pleased to have a strong partner like Samsung to support Sunplus and Sunext," said Huang Chou-Chye, chairman of Sunplus Technology. "With Oak's optical technologies, Samsung's R&D and world-class manufacturing expertise and Sunplus's leading consumer electronics position in Asia, we believe we can create a leading optical storage company and provide unparalleled support to our optical drive customers."

Young Sohn, chairman and chief executive officer of Oak Technology stated, "This partnership with Samsung underscores Oak's commitment to continually provide leading-edge and cost-effective solutions to our customers. We are proud to expand successful partnerships with industry leaders such as Samsung and Sunplus. Together, we expect Sunext to lead the optical storage market in the next phase of competition which will emphasize cost competitiveness, production scale and SOC integration."

About Oak Technology
Oak Technology, Inc., a leading provider of solutions for the storage, manipulation and distribution of digital content, is committed to driving the emerging world of connected consumer appliances. The company's fully integrated products and technologies target two key markets: digital imaging (advanced copiers, printers, faxes, scanners and MFPs) and digital home entertainment (digital TV, HDTV and PVRs). Founded in 1987, Oak is headquartered in Sunnyvale, California, and has sales offices, design centers and research facilities around the world. The company trades on the NASDAQ Stock Exchange under the symbol OAKT. Additional information about Oak and its digital solutions can be found at www.oaktech.com.

About Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, and digital convergence technology. Samsung Electronics employs approximately 64,000 people in 89 offices in 47 countries. The company is the world's largest producer of memory chips, TFT-LCDs, CDMA mobile phones, monitors and VCRs. Samsung Electronics consists of four main business units: Digital Media Network, Device Solution Network, Telecommunication Network and Digital Appliance Network Businesses. For more information, please visit http://www.samsungelectronics.com/

About Sunplus Technology
Sunplus Technology Co., Ltd. is one of the largest consumer IC design houses in Taiwan. Sunplus is listed on the Taiwan Stock Exchange (TSE) under ticker 2401 and trades GDRs on the London Stock Exchange under the symbol SUPD. Further information about Sunplus can be found at www.sunplus.com.tw

Oak Technology is a registered trademark of Oak Technology, Inc.

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