Press Releases

HTC Acquires S3 Graphics

HTC Adds Key Graphics Visualization Patents To Existing IP Portfolio

Taoyuan, Taiwan — July 6, 2011 — HTC Corporation, a global designer of mobile phones and devices,today announced the acquisition of all outstanding shares of S3 Graphics Co., Ltd. (“S3 Graphics”) for an aggregate consideration of US$300 million, payable fin cash. The acquisition strengthens HTC’s technology leadership and extends its IP portfolio with the addition of 235 patents and the pending applications, including those related to graphics visualization technologies.

S3 Graphics is a leading provider of innovative graphics visualization technologies. It licenses the widely recognized texture compression algorithms, known as S3 Texture Compression (“S3TC™”), to the world’s leading technology and consumer electronics companies, including Microsoft, Sony and Nintendo. In addition to its traditional markets in PCs and game consoles, S3 Graphics’ texture compression technology is increasingly being applied to smartphones and tablet devices. S3TC is also invaluable to the development and implementation of advanced 3-D video graphics.

“As a leading mobile innovator, HTC is committed to continually enhancing its IP portfolio,” said Peter Chou, CEO of HTC. “S3 Graphics’ patents are highly complementary to HTC’s existing innovations and multimedia capabilities.”

“S3 Graphics has a long history of designing graphics processor chips and technologies,” said Dr. Ken Weng, CEO of S3 Graphics. “S3 Graphics’ technology has been implemented in more than one billion computers, game consoles and mobile devices worldwide.”

S3 Graphics is a private company owned by VIA Technologies, Inc. ("VIA") and WTI Investment International, Ltd. (“WTI”), an investment company, in which Cher Wang, Chairman of HTC, is an indirect significant shareholder.

The proposed transaction has received approvals from the boards of directors of HTC, WTI and VIA.Subject to regulatory approvals and other customary conditions, the transaction is expected to close before end of 2011.

About HTC
HTC Corporation (“HTC”) is one of the fastest growing companies in the mobile phone industry. By putting people at the center of everything it does, HTC creates innovative smartphones that better serve the lives and needs of individuals. The company is listed on the Taiwan Stock Exchange under ticker 2498. For more information about HTC, please visit www.htc.com.