Taipei, Sep. 15, 2003--- Silicon Integrated Systems Corp. (SiS), a world leader in core logic products, today announces the spun-off of the Company’s Fab operation business into a 100% owned subsidiary of SiS, abided by the Enterprise Merger and Acquisition Law and Corporate Law. This change of business model is aimed at refocusing on respective core competences so as to enhance the competitiveness of the Company. The spin-off company, tentatively named SiS Microelectronics Corp. with capital of NT$8,000,000,000, absorbs the assets and liabilities related to the SiS Fab Manufacturing operation, which carries the business value of NT$17,249,411,974 on assets, NT$8,181,940,451 on liability and NT$9,067,471,523 on equity, calculated based on the financial report as of July 31, 2003. SiS acquires 800,000,000 shares of common stocks of SiS Microelectronics Corp. at a premium. The board of directors of SiS and the new company will finalize the actual spin-off record date after approval obtained from the Extraordinary Shareholders’ Meeting. The tentative record date is scheduled on December 15th, 2003. There will be no change of the Board or the management team. Mr. John Hsuan still serves as the Chairman of the Board.

Chairman Hsuan indicates that SiS will be able to focus on IC design related technology development while SiS Microeletronics on manufacturing to expand its production items after this division. With such a clear partition on expertise, the Company can speed up the operation efficiency and elevate the competitiveness as a whole.