Press Release

Transcend Breaks Record with Sales of $789 million in 2006

Transcend Information is proud to announce that its global sales reached $789 million in 2006, which broke the highest record in the company's history. Besides, the overall revenue of 2006 increased 57.73% compared to 2005, and the compound growth rate is 41.5% for the past five years. The impressive sales performance in 2006 reflects that Transcend is the fastest growing memory card and digital media company in terms of global sales and market share.

In recent years, Transcend continually improved its global sales by expanding flash memory products, strengthening global sales force, increasing production in China factories, and developing strong relationship with DRAM/flash suppliers. This year, Transcend will focus on America, China, and the OEM market to extend its global territory. With the help of sufficient production from China's new factories and strategic products, such as MP3 players and storage devices, Transcend expects its sales to sustain growth in 2007.

In regard to Transcend's product shipments, Flash products weight 55% and DRAM modules contribute 45% of its total sales revenues. In 2007, the strong memory demand driven by Windows Vista will have a great impact on the memory capacity (the standard will be 1GB or above) and Transcend's DRAM modules shipments. As for NAND Flash, an increase of applications, such as music cell phone, GPS and Vista ReadyBoost, will also affect Flash products shipments significantly. Transcend maintains its confidence over the memory outlook in 2007 and projects sales to grow further.