Releases

posted on 25 August 2008 10:30

TAIPEI, Taiwan, Aug. 15, 2008 (GLOBE NEWSWIRE) (PRIME NEWSWIRE) -- Silicon Motion Technology Corporation (Nasdaq:SIMO), a leading fabless semiconductor company that designs, develops, and markets high-performance, low-power semiconductor solutions for the multimedia consumer electronics market, today announced that the Company has completed its $40 million share repurchase program which was announced on March 12, 2008.

The Company's Board of Directors has resolved to authorize a new share repurchase program under which the Company, or one of its affiliates, may repurchase up to $40 million of its American Depositary Shares ("ADS").

"We continue to be confident in our long-term strategy, growth prospects, and our continued ability to generate positive free cash flow while leaving adequate financial resources to invest in research and development, as well as pursue value-added acquisition opportunities," said Wallace Kou, Silicon Motion's President and CEO. "Our Board of Directors believes that repurchasing our ADSs is currently the best use of cash at this time in terms of creating shareholder value."

For the Company's recently completed $40 million share repurchase program that was announced on March 12, 2008, 3.4 million ADSs were purchased at a weighted average price of $11.65.

The new program will be conducted in compliance with the SEC's Rule 10b-18 and applicable legal requirements and shall be subject to market conditions and other factors. Repurchases under the program may be conducted at any time during the period commencing August 15, 2008 and extending through August 14, 2010. The program does not obligate the Company to acquire any particular amount of ADSs and the program may be modified or suspended at any time at the Company's discretion. The repurchases will be made in the open market, in privately negotiated transactions, or in structured share purchase programs and will be funded from available working capital. As of June 30, 2008, the Company had approximately $95 million of cash, cash equivalents, and marketable securities.

About Silicon Motion:

We are a fabless semiconductor company that designs, develops and markets high performance, low-power semiconductor solutions for the multimedia consumer electronics market. We have three major product lines: mobile storage, mobile communications, and multimedia SoCs. Our mobile storage business is composed of microcontrollers used in NAND flash memory storage products such as flash memory cards, USB flash drives, SSDs, embedded flash applications, and card readers. Our mobile communications business is composed of mobile TV tuners, CDMA RF ICs, and electronic toll collection RF ICs. Our multimedia SoCs business is composed of products that support MP3 players, PC cameras, and embedded graphics applications.

^{[Formatted by Paul Warren.]}