Toshiba Licenses Staktek's NAND Flash-Memory Technologies

AUSTIN, Texas--June 30, 2006--Staktek Holdings, Inc. (NASDAQ: STAK), a world-leading provider of intellectual property and services for next-generation, chip-stacking and module technologies for high-speed, high-capacity systems, today announced a license agreement in which Staktek has licensed its NAND Flash-memory stacking technologies to Toshiba Corporation.

Under the terms of the agreement, Toshiba will be able to use certain Staktek stacking technologies for Flash leaded packages until 2008.

"We are pleased to be able to offer Staktek's leading technology in our products," said Shozo Saito, Corporate Vice President and Executive Vice President of Toshiba Corporation Semiconductor Company. "Toshiba will continue to build on its leading position in NAND flash memory. Working with Staktek will support us in raising customer satisfaction."

"With more than 185 million DRAM stacks shipped using our patented Stakpak technologies, it was a natural progression for us to expand into the fast-growing Flash memory market by offering Flash stacking solutions," stated Wayne R. Lieberman, Staktek's President and Chief Executive Officer. We are proud that our advanced stacking technology, built on an extensive patent portfolio, will enable Toshiba to expand its product offerings."

Staktek offers a complete line of TSOP and Chip Scale Package (CSP) chip-stacking technologies, along with ArctiCore(TM), a module technology designed for superior thermal, mechanical and electrical performance in enterprise and consumer electronics. Staktek offers intellectual property licensing and manufacturing services for all of its products and solutions.

About Staktek

Staktek is a world-leading provider of intellectual property and services for next-generation, chip-stacking and module technologies for high-speed, high-capacity systems. Staktek's Performance, Value, FlashStak and High Performance Stakpak(R) memory solutions increase operational performance by doubling, tripling or quadrupling the amount of memory in the same physical footprint as required by standard packaging technology. Staktek's ArctiCore(TM) is a revolutionary new module technology using a double-sided, multi-layer flexible circuit folded around an aluminum core designed for superior thermal, mechanical and electrical performance. With an IP portfolio of approximately 200 patents and patent applications pending, the company offers flexibility for customers, including outsourced manufacturing, technology licensing and custom engineering. Headquartered in Austin, Texas, Staktek operates a world-class manufacturing facility in Reynosa, Mexico. For more information, visit http://www.staktek.com.