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Audio Capabilities Include DTS(R) and HDCD(R) Decode, Dolby Prologic(R), 7 Band Equalizer, and CRL(R) Speaker Virtualization

New Solution Reduces Overall System Cost

``The launch of this second generation of ESS's family of DVD chip and software solution, demonstrates our commitment to providing leading-edge products for the consumer electronics market,'' said Austin Sun, vice president of marketing. ``In addition to offering the latest audio technology, this combined chip and software product family reduces overall system cost due to its faster processing speed.''

ESS's Swan II® Plus DVD solutions, the ES4318 and 4408FD, are designed to offer highly integrated and cost-effective DVD Player solutions with a new level of digital video and audio performance for the consumer electronics market. In addition to the rich feature-set previous offered by ESS Swan® family of DVD solutions, the Swan II® Plus family offers additional new features such as full DTS® decode, HDCD® decode, Dolby Prologic® backward compatibility, 7-band digital audio equalizer, and CRL® speaker virtualization capabilities.

OEM customers can capture the benefits of the ESS Swan II® Plus family of DVD solutions with an easy design upgrade from previous Swan® DVD versions. The Swan II® Plus family of DVD solutions from ESS not only offers desirable, leading-edge new features, but also offers manufacturers a lower overall system cost due to improved chip and software performance.

About ESS Technology

ESS Technology, Inc., a leader in Internet, communications, PC audio and digital video, provides advanced products enabling the convergence of communications, computer, consumer, and Internet markets. ESS's subsidiary, ViAlta.com, provides advanced, easy-to-use products and applications for the Internet. Products include multi-media appliances, applications and content for the Internet, which enable the user to experience new levels of entertainment and e-Commerce.

ESS, headquartered in Fremont, Calif., has R&D, sales and technical support offices worldwide. ESS Technology's common stock is traded on the Nasdaq under the symbol ESST. ESS's Web site address is: http://www.esstech.com .

The matters discussed in this news release include certain forward looking statements that involve risks and uncertainties, including, not limited to, the timely availability and acceptance of the Company's new products, the impact of competitive products and pricing, the dependence on continued growth in demand for PC and consumer multimedia products, as well as the other risks detailed from time to time in the SEC reports of ESS, including the reports on Form 10-K and Form 10Q. Actual results could differ materially from those projected in the forward-looking statements.

SOURCE: ESS Technology, Inc.