Powertech Technology Incorporation (“PTI”) has executed an asset & share purchase agreement with Spansion LLC (“Spansion”) on August 22, 2009 (the “Agreement”).

The current chip packaging services of PTI have always been focused on the field of Memory IC. To develop a new market opportunity for chip packaging in the field of logic IC, MCP and Flash memory, PTI decided to purchase the equity of Spansion Holdings (Singapore) Pte. Ltd. in order to leverage on the synergy between the expertise of multi-chip packaging and knowledge of the Mainland China marketsof Spansion (China)Ltd., thewholly owned subsidiary ofSpansion Holdings (Singapore) Pte. Ltd., and PTI’scurrently existing platform of chip packaging.

As such, the new PTI Suzhoufacility will continue to provide finalmanufacturing services to Spansion, and furthermore, by our newly established alliance with Spansion, the new PTI Suzhoufacility is expected to serve a broader customer base, which is expected to result in lower costs for both PTI and Spansion throughgreater economies of scale and increased utilization.

The total consideration will be USD31,000,000 plus a certain amount of working capital calculated using a “Purchase Price Adjustment” mechanism as of the closing of the transaction in accordance with the Agreement. Upon application of such adjustment mechanism, the total consideration under the Agreement may reach approximately USD51,000,000. However, payment by PTI on the transaction may take place only after PTI and Spansion, respectively, obtains the requisite approvals of the Investment Committee, Ministry of Economic Affairs of Republic of China and of the U.S. Court supervising Spansion’s reorganization.

On or after the closing of the transaction, (1) Spansion shall transfer 100% of Spansion Holdings (Singapore) Pte. Ltd.’s shares to Powertech Holding (B.V.I.) Inc., a wholly owned subsidiary of PTI; and (2) Powertech Holding (B.V.I.) Inc. will indirectly own 100% of Spansion (China)Ltd.

About PTI

Powertech Technology Inc. (PTI) was founded in 1997 and is the world's leading provider of IC backend services. The services cover IC chip probing, packaging and testing to end products with worldwide delivery.

Currently ,PTI has over 4100 employees .With strategic alliances and continuous

improvements, PTI provides reliable quality by implementing mainstream technology to fulfill the customers’demands through our world-class manufacturing plants in Hsinchu County, Taiwan.

With more than 50% compound average growth rate in the past 10 years, in 2008, PTI ranked number five among worldwide IC backend subcontractors and number one scale in memory device application. Shipping more than 210M units per month to customers worldwide, our customers are primarily first-tier integrated devices manufacturers (IDM) or fabless companies, which highlights our excellent manufacturing capacity and capability.

PTI contact:

C. C. Liao

Deputy CEO & Spokesman

Powertech Technology Inc.

Phone:886-3-588-9698

Email: