TrendChip and Ralink Enter Into Merger Agreement

By Trendchip Technologies Corporation, PRNE
Wednesday, March 10, 2010

Combined Company is a Global Powerhouse for Wireless and Broadband Connectivity Semiconductors

HSINCHU, Taiwan, March 11, 2010 - TrendChip Technologies Corporation (TAIEX 3614, TrendChip), a leading
supplier of broadband connectivity chipsets and Ralink Technology Corporation
(TAIEX 3534, Ralink), a leading developer of high performance wireless
solutions, today announced that a merger agreement has been approved by the
Board of Directors to create a global technology leader in the home
networking and broadband access semiconductor markets. Under the terms of
this agreement, the Board of Directors from both companies have agreed that
the merged company will be called Ralink Technology Corporation, and that
each 0.8209 share of TrendChip will be exchanged for 1 share of Ralink. With
a combined stock valuation of approximately NT$20 billion, and combined 2009
revenues of over NT$7.3 billion, the new Ralink Technology Corporation is
among the world's "Top 30" fabless semiconductor companies as ranked by IC
Insights based on revenue.

TrendChip, founded in 2001, is headquartered in Hsinchu, Taiwan, and
maintains development centers in Suzhou and Nanjing China. TrendChip is among
the fastest growing xDSL CPE semiconductor suppliers in the market with over
90% growth in 2009. TrendChip's solutions have been deployed by 50 carriers
in 45 countries across Europe, Asia, and the Americas. With its high
performance yet cost-effective xDSL solutions, TrendChip is on track to
become the number 2 global xDSL CPE chip supplier in 2010. Ralink, also
founded in 2001, is headquartered in Hsinchu, Taiwan, and operates a
development center in Cupertino, California. Ralink's 802.11n solutions are
shipping with customers in the Americas, Europe, and Asia, and are embedded
in hundreds of products across all major Wi-Fi market segments including
personal computers, broadband gateways, digital televisions, Blu-Ray players,
web cameras, and IPTV set-top-boxes.

"Ralink and TrendChip have worked closely over the past several years to
win joint designs with common customers across the globe," said Shinjou Fang,
Chairman of TrendChip Technologies. "Both Ralink and TrendChip share a
similar vision of the Networked Digital Home, and both companies are
executing on similar strategies to deliver industry-leading performance at
disruptive price points. By merging the two companies Ralink Technology
Corporation will be able to leverage our combined resources, operational
efficiencies, and complementary technologies to deliver superior solutions to
our customers and increased value to our shareholders."

"By combining Ralink and TrendChip into a single company, Ralink
Technology Corporation will be positioned to drive the growth of
high-performance yet cost-effective 'triple play' voice, video, and data
services throughout the Networked Digital Home," said Chris Kao, Chairman of
Ralink Technology. "Broadband Gateways will incorporate our DSL and Wi-Fi
chipsets, and they will deliver wireless content throughout the home to
personal computers, televisions, phones, and other consumer electronics
devices. With our combined forces and technologies, we anticipate accelerated
growth in both existing and adjacent market segments over the coming years."

Management of the combined 600-person company will include executives and
board members from both organizations. To streamline integration of the two
companies, and to maximize operational efficiencies during the transition
period, Ralink Technology's Board of Directors has appointed Shinjou Fang,
Chairman of TrendChip Technologies, to be CEO of Ralink Technology and Chris
Kao
will continue to serve as Chairman.

About TrendChip Technologies

TrendChip Technologies Corporation is a leading supplier of broadband
access chipsets. The company's cost-effective ADSL chipsets and software
deliver industry-leading performance that has been widely adopted by
world-class telecommunications customers across the globe. Worldwide product
shipments have grown steadily since the company was founded in 2001, and grew
by more than 90 percent in 2009 enabling the company to achieve more that 25%
global market share in 2009. For more information about TrendChip, please
visit our website at www.trendchip.com.tw .

About Ralink Technology

Ralink Technology Corporation is a leading innovator and developer of
wireless chipset solutions. Our products are recognized for their superior
throughput, extended range, low-power consumption, and consistent
reliability. Ralink's patented Wi-Fi technology is used in various
applications including traditional PC networking, broadband gateway
connectivity, and consumer electronics applications. Ralink Technology was
founded in 2001 with headquarters in Hsinchu, Taiwan and maintains an
Advanced R&D center in Cupertino, California. For more information about
Ralink please visit our website at www.ralinktech.com .

    Contact Information

    TrendChip Technologies Corporation
     Alexandra Fan
     Finance Senior Manager
     Tel: +886-3-666-8066
     Email: alexandra_fan@trendchip.com.tw

    Ralink Technology Corporation
     Bo Chen
     CFO
     Tel: +886-3-560-0868
     Email: ir@ralinktech.com.tw

Alexandra Fan of TrendChip Technologies Corporation, +886-3-666-8066, alexandra_fan at trendchip.com.tw; Bo Chen of Ralink Technology Corporation, +886-3-560-0868, ir at ralinktech.com.tw

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