MediaTek second quarter profit rose 27% on DVD chips

August 4, 2003

According to an article on Bloomberg.com has MediaTek achieved to rise its
profits with 27% on DVD chips. The Taiwanese chip manufacturer was the first
company to make a combo chip that allowed several functions on one chip.
Competitors that were also planning to develop similair problems were not able
to start their production due to the recent SARS outbreak, according to the
article.

MediaTek
last year became the first company to sell a chip that combines the
functions of several into one. Competitors that planned to offer similar
products to DVD-player makers in China were forced to cancel visits to the
nation after the mid-March outbreak of severe acute respiratory syndrome,
MediaTek said.

``Because of SARS, some design activity in
China slowed,'' MediaTek Chairman M.K. Tsai said on a conference call.
Rivals won't be able to catch up this year because ``the time is almost
over for design-in efforts for the fourth quarter,'' he
said.

The company is counting on even higher profits this
year due the introduction of new chips for mobile phones and recordable
DVD players later this year.

Source: Bloomberg.com