Faraday Reported 2008 Third Quarter Results

Third Quarter 2008 Highlights:

• Quarter-over-quarter revenue increased by 24% to NT$1,473 million (US$47million)
• Gross margin, 43.3%
• Net income of NT$230 million (US$7.4 million)
• Earnings per share of NT$0.65 for the quarter

Hsinchu, Taiwan – October 24 , 2008 – Faraday Technology Corporation (TSE: 3035), a leading fabless ASIC design service and silicon IP provider, today announced its unconsolidated operating results for the quarter ended September 30, 2008. The third quarter revenue was NT$1,473 million, while net income and basic earnings per share came to NT$230 million and NT$0.65 per share, respectively. Thanks to a higher percentage from ASIC mass production business, the revenue of 3Q08 increased by 24% compared to 2Q08. ASIC mass production revenue was NT$1,251 million, increased by 34.0% compared to the previous quarter (2Q08); and up 30.7% over the same period last year (3Q07). Advanced process technologies (0.13-micron and below) accounted for 24.8% of the overall ASIC revenue in the quarter, increased by 60% over the previous quarter (2Q08); and more than twice growth over the same period last year (3Q07).

The unconsolidated sales revenue from the first three quarters this year was NT$3,813 million, gross margin and net margin were 44.7% and 15.4% respectively. The accumulated EPS was NT$1.66 after implementing a new ROC accounting rule of expensing employee profit sharing.

Summary of Operating Results

Operating Results

(Amount: NT$ million)	3Q08	2Q08	QoQ% change	3Q07	YoY% change
Revenue Gross Profit Operation Expenses Operating Income Non-op. Income (Expenses) Net Income EPS (NT$ per share)	1,473 638 (423) 215 16 230 0.65	1,188 516 (358) 158 (16) 141 0.40	24.0 23.7 18.3 36.1 (196.8) 63.2	1,401 663 (334) 329 39 367 1.09	5.1 (3.8) 26.7 (34.7) (59.0) (37.3)

Detailed Financials Section

COGS & Expenses

(Amount: NT$ million)	3Q08	2Q08	QoQ% change	3Q07	YoY% change
Revenue COGS Wafer Other Mfg. Costs Gross Profit Gross Margin (%) Total Operating Exp. G&A Sales and Marketing R&D Operating Income Operating Margin (%)	1,473 (835) (503) (332) 638 43.3% (423) (58) (16) (349) 215 14.6%	1,188 (672) (358) (314) 516 43.4% (358) (40) (19) (299) 158 13.3%	24.0 (24.3) 40.5 5.7 23.7 18.3 45.0 (15.8) 16.7 36.1	1,401 (738) (371) (367) 663 47.3% (334) (49) (29) (256) 329 23.5%	5.1 13.1 35.6 9.5 (3.8) 26.7 18.4 (44.8) 36.3 (34.7)

Non-operating Income (Expenses)

(Amount: NT$ million)	3Q08	2Q08	3Q07
Net Non-operating Income (Loss) Net Interest Income (Expense) Net Investment Income (Loss) Reverse on (Inventory Loss Provision) Gain (Loss) on Disposal of Investment Exchange Gain (Loss) Others	16 7 - (13) - 9 13	(16) 7 (12) (11) - 2 (2)	39 8 65 (15) - (2) (17)

Current Assets

(Amount: NT$ million)	3Q08	2Q08	3Q07
Cash & Cash Equiv. Notes & Accounts Receivable Days Sales Outstanding Inventory Avg. Inventory Turnover Total Current Assets	1,157 1163 64 378 48 2,932	1,863 913 68 370 58 3,418	1,530 1,241 71 263 38 3,311

Liabilities

(Amount: NT$ million)	3Q08	2Q08	3Q07
Total Current Liabilities Notes & Accounts Payable Others Long-term Liabilities Total Liabilities Liabilities to Equity	1,550 629 921 1,569 28.5%	2,642 623 2,019 2662 49.8%	1,432 769 663 1,454 22.7%

Analysis of Revenue

ASIC Revenue Breakdown by Region

Region	1Q08	2Q08	3Q08
Taiwan	44.7%	52.4%	47.4%
USA	15.9%	16.7%	17.7%
Japan	8.6%	4.7%	4.6%
Europe	16.8%	12.4%	17.4%
Korea	1.9%	2.0%	0.6%
China	12.1%	11.8%	12.3%

Total Revenue Breakdown by Customer Type

Type	1Q08	2Q08	3Q08
Fabless	47.0%	45.7%	48.0%
System	40.7%	46.7%	45.4%
Foundry	12.3%	7.6%	6.6%

ASIC Revenue Breakdown by Geometry

Geometry	1Q08	2Q08	3Q08
90nm		0.3%	0.2%
0.13um	15.8%	19.7%	24.6%
0.162um	11.7%	8.4%	3.5%
0.18um	43.9%	39.8%	45.3%
0.22um	2.2%	1.5%	1.8%
0.25um	8.4%	14.2%	9.9%
0.35um	11.3%	9.1%	9.2%
0.45um	1.8%	1.3%	0.8%
0.5um	4.6%	5.5%	4.3%
0.6um	0.3%	0.2%	0.4%

Total Revenue Breakdown by Billing Method

Billing	1Q08	2Q08	3Q08
ASIC MP	70.7%	78.6%	84.9%
Design Service	8.2%	6.8%	4.0%
IP	21.1%	14.6%	11.1%

ASIC Revenue Breakdown by Application

Application	1Q08	2Q08	3Q08
Peripheral /Storage	27.6%	25.9%	16.0%
Comm.	40.9%	31.8%	37.3%
Display	2.4%	4.1%	5.2%
Consumer	7.9%	14.4%	21.0%
Multimedia	19.8%	20.2%	17.5%
Others	1.4%	3.6%	3.0%

About Faraday

Faraday Technology Corporation is a leading silicon IP and fabless ASIC vendor. The company's broad IP portfolio includes 32-bit RISC CPUs, DSPs, PHY/Controllers for USB 2.0, Ethernet, and Serial ATA. With 2007 revenue of US$ 156 million, Faraday is one of the largest fabless ASIC companies in the Asia-Pacific region, and it also has a significant presence in other world-wide market. Headquartered in Taiwan, Faraday has service and support offices around the world, including the U.S., Japan, Europe, and China. For more information, please visit: http://www.faraday-tech.com