MegaChips Technology America Corporation (MegaChips America) announced that following the signature of an agreement with STMicroelectronics (NYSE: STM, "ST") and final closing on September 2, it has acquired 9 smart connectivity products based on DisplayPort TM technology that ST decided to discontinue last year, along with its related assets, business and products in development.

During the transition, ST and MegaChips ensured continuity of products and services to customers. A number of employees engaged in product development and marketing in relation to the acquired business from ST, joined MegaChips America. This group included Mr. Alan Kobayashi, currently the chair of VESA (Video Standards Association), who joined MegaChips America as a Fellow and Product Development Manager.

"We believe this acquisition will strengthen MegaChips America's ability to offer innovative solutions to its customers in high-speed digital connectivity," said Koichi Akeyama, President of MegaChips America. "MegaChips America has been actively developing products that enable high-speed communications to bring multimedia to the home and the smart connectivity products based on DisplayPort technology will enable that content to be easily shared and played on a variety of systems."

"This acquisition positions MegaChips Corporation to promote DisplayPort standardization activity. In addition to leveraging synergy with its existing technologies, the company would be able to offer system-level solutions and high-quality support to tier1 customers across the globe," said Akira Takata, President and CEO of MegaChips Corporation. "MegaChips is currently one of the leading suppliers of ICs that are used in a wide variety of flat-panel displays such as TV's, laptops and general signage."

About MegaChips Technology America Corporation ("MegaChips America")

MegaChips America is a wholly owned subsidiary of MegaChips Corporation(TSE 6875) headquartered in Osaka, Japan. MegaChips and MegaChips America are fabless LSIs companies, focused on the development of system LSIs and system products that incorporate original algorithms and architecture. Customers use MegaChips solutions for their office automation, networking and storage needs in a wide range of areas, including imaging, audio, home networking, security and communications environments. MegaChips America is headquartered in San Jose, California, with design centers at Osaka, Tokyo and Chiba in Japan and Bangalore in India of MegaChips Corporation. For more information, contact the company at 408-570-0555, or visit http://www.megachips.us.