ISSI (MM)

ISSI Acquires Majority Interest in Signia Strengthens Commitment in Wireless Chipset Sector SANTA CLARA, Calif., Dec. 21 /PRNewswire-FirstCall/ -- Integrated Silicon Solution, Inc. (NASDAQ:ISSI) today announced that it has increased its ownership in Signia Technologies, Inc. (Signia) to approximately 66% of the outstanding shares. Signia is a privately held wireless chipset company headquartered in Taipei, Taiwan. ISSI has held a minority equity interest in Signia for several years and has held a seat on the Signia board. The two companies have worked closely together in wireless joint product development. Signia has focused on RF chipsets for the consumer electronics market. They have a family of Bluetooth(TM) compliant, 2.4G RF devices at both 0.25 micron and 0.18 micron, and proprietary 2.4G RF devices targeting consumer electronic applications. Signia's revenue for calendar year 2004 is estimated to be $7.0 million to $7.5 million. "Part of ISSI's strategy is to diversify into non-memory products," said Jimmy Lee, ISSI Chairman and CEO. "Increasing our stake in Signia furthers this strategy. As a result of our increased stake, we will be working more closely with Signia and hope that our tighter relationship will be beneficial." ISSI has increased its ownership to approximately 66% by buying shares from other shareholders. The cost of this additional investment was approximately $8.0 million. Prior to this increase in ownership, ISSI accounted for Signia on the cost basis. Since ISSI now owns over 50% of Signia, beginning from December 1, 2004, it will consolidate Signia's financial statements with its own. For the period ending December 31, 2004, it is estimated that Signia will contribute between $350,000 to $400,000 in revenue and between $150,000 and $175,000 in losses to ISSI's consolidated results. No separate conference call will be held in connection with this news release. ISSI's regularly scheduled quarterly conference call will occur January 25, 2005 at 1:30 p.m. (PST). About ISSI ISSI is a fabless semiconductor company that designs and markets high performance integrated circuits for the following key markets: (i) digital consumer electronics, (ii) networking, (iii) mobile communications and (iv) automotive electronics. The Company's primary products are high speed and low power SRAM and low and medium density DRAM. The Company also designs and markets EEPROM, SmartCards and is developing selected non-memory products focused on its key markets. ISSI is headquartered in Silicon Valley with worldwide offices in China, Europe, Hong Kong, India, Korea and Taiwan. Visit our web site at http://www.issi.com/. Safe Harbor Statement The statements in this press release regarding ISSI's strategy to diversify, working more closely with Signia, our relationship with Signia being beneficial and Signia's estimated 2004 revenue and income statement contribution are forward-looking statements that are subject to risks. Actual results may differ materially from current expectations due to many factors, including our ability to increase our number of non-memory products and the revenue from such products, changes in market conditions for our memory and non-memory products, the success of our product development efforts with Signia, competition in our memory and non-memory product markets and in Signia's markets, fluctuations in Signia's results during the remainder of 2004 including any quarter end or year-end accounting adjustments. Further, both Signia and ISSI could have their actual results differ from current expectations due to reductions in average selling prices, manufacturing yields, order cancellations, order rescheduling, decreasing demand, product warranty claims, competition, the level and value of inventory held by OEM customers, or other factors. Stockholders of ISSI are cautioned not to place undue reliance on our forward-looking statements, which speak only as of the date such statements are made. ISSI does not undertake any obligation to publicly update any forward-looking statements to reflect events, circumstances, or new information after this December 16, 2004 press release, or to reflect the occurrence of unanticipated events. Further information that could affect the Company's results is detailed in ISSI's periodic filings with the Securities and Exchange Commission, including its Annual Report on Form 10K for the fiscal year ended September 30, 2004. DATASOURCE: Integrated Silicon Solution, Inc. CONTACT: Gary L. Fischer, President & COO of Integrated Silicon Solution, Inc., +1-408-969-4612, or Web site: http://www.issi.com/

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