1. 2006 2006 : : Date: 2006. 07. 20

2. 2 Red Ocean Competition Wintech Overview Business Update Y2006-2008 Perspectives Contents

3. 3 1. Red Ocean Competition A. DTAM in APAC Growing Significance of Asian Semi Market (US$)20052006(F)2010(F) WW SC TAM235B253B321B WW SC TAM in APAC118B134B186B 30% DTAM in APAC35B40B56B WPGs Sales3.6B WPGs Mkt Share in APAC10% Y2003: 8% Y2004: 8% 6% 15% 29% 46% 50.2% Y2005/10CAGR WW: 6.5% Asia/Pac: 9.2%

4. 4 DTAM keeps increasing vs. direct sales decreasing Top 5 Dists will take more than 70% of market shares in Y2008. Arrow, Avnet continue the great performances on earning. Asia Dists focus on expanding the infrastructure and revenue growth in the past 5 years but lack the management of profit and ROI. No significant winner in Asia 1. Red Ocean Competition B. Competition in Asia

5. 5 Highlight TAM and DTAM continue to increase throughout Asia. Communication and consumer products will be the key marketing opportunities in the years to come. Product differentiation and performance driven are the key trend in the consumer and communication market segment. Product differentiation and performance driven create the opportunities for profit in the supply chain. Lowlight The rise in interest rate resulted in greater costs. PC customers are operating with increasingly low margins. The inventory management is getting more difficult due to the product differentiation. 1. Red Ocean Competition C. Opportunities & Challenges

6. 6 Shanghai, China Office Chengdu,China Office Nanjing, China Office Beijing, China Office QingDao, China Office Bangkok, Thailand Office India Office Hangzhou, China Office Shenzhen,China Office Hong Kong Office Taipei, Taiwan Office Hsinchu, Taiwan R&D Penang, Malaysia Office Singapore Office Seoul, Korea Office Xiamen, China Office 2. Wintech Overview A. Offices Across Asia

7. 7 Completed Intranet System SH TW SH C HK CD SZ BJ SU SG Kor ea Mal aysi a Tha ilan d Indi a FZ XM HZ WH QD NJ 2. Wintech Overview B. Integrated Supply Chain Management

8. 8 SAP implementation by Oct, 2003. B to B Business model with key suppliers and Customers. Serve all JIT/BTO/VMI program. Own Singapore, HK, Shanghai, Taiwan warehouse. 2. Wintech Overview B. Integrated Supply Chain Management

9. 9 Improves delivery performance Reduce inventories Improve fulfillment cycle times Lower supply chain cost Shorten time-to-market. 2. Wintech Overview B. Integrated Supply Chain Management

10. 10 Shanghai, China Office Hong Kong Office Taipei, Taiwan Office Singapore Office Shipping Origins B. Integrated Supply Chain Management

11. 11 (1) Design Services – System Level SZ and Hsin Chu design services center. ADSL Router, PMP, Set-Top Box, Giga Switch, MPEG-4 Capture Card, MP3 Player and CPU Power Modules. (2) FAE Support – Component Level Experienced engineers dedicating for suppliers Optimal solution suggesting Application consulting Board level debugging and manufacturing assistance 2. Wintech Overview C. Excellent Application Support

12. 12 ProductTISTFSCMVLADIIRONAlteraOthersTotal NR (US$M)117.669.184.5107.36.515.415.50.964.5481.3 3. Business Update A. Y2006 1H Resale by Brand

13. 13 3. Business Update B. Financial Overview

14. 14 A. Overview 1994 – 2000Survived 2001 – 2005To Be the Player 2006 – 2008To Be the Excellent Player 4. Y2006-2008 Perspectives

15. 15 n Organic Growth – 25% n Acquisition 4. Y2006-Y2008 Perspectives B. Sources of Growth

16. 16 NR(M$) 4. Y2006-Y2008 Perspectives

17. 17 4. Y2006-Y2008 Perspectives C. GP and Expense

18. 18 Wintech Microelectronics Co., Ltd. Website : www.wtmec.com ! !