SST and Samsung Expand Strategic Collaboration With New SuperFlash Embedded Technology Licensing Agreement

Samsung to Utilize SST's SuperFlash Technology Targeting High-Volume Consumer Applications for Embedded Flash in 130-nanometer Technology Node

SUNNYVALE, Calif. -- Dec. 12, 2005 -- SST (Silicon Storage Technology, Inc., (Nasdaq: SSTI)), a leader in flash memory technology, and Samsung Electronics Co. Ltd., a leader in advanced semiconductor technology, today announced that the two companies signed a new technology licensing agreement that will provide Samsung with advanced deep sub-micron embedded flash technology. Under terms of the agreement, Samsung will license SST's proven SuperFlash technology for use within its high-volume, high-density embedded flash and ASIC products in 130-nanometer technology node, such as Samsung's recently introduced S3FJ91L smart card IC with 2-MBytes embedded flash memory. The signing of this new licensing agreement with Samsung solidifies the two company's long-term collaboration and reconfirms the commitment SST has to making SuperFlash the technology of choice for high- volume embedded applications. With the signing of this new technology licensing agreement, Samsung becomes the first licensee of SST's proven SuperFlash technology for 130-nanometer technology node.

SST's embedded SuperFlash technology has received strong acceptance with more than 2.1 billion third-party parts on the market today that incorporate its leading-edge flash technology. SST attributes the success of SuperFlash to its reliability, low power and compatibility with CMOS logic process. In addition, SST has been able to form strong relationships with companies like Samsung and global foundry partners, enabling SuperFlash technology to be widely accessible to the industry.

"The combination of Samsung's advanced process technology with SST's SuperFlash technology will enable us to develop the most advanced embedded Flash process technology for ASIC and ASSP product which require high-density, non-volatile storage," said Dr. O.H. Kwon, president of system LSI division, Samsung Electronics. "Our collaboration with SST goes back more than five years, and in that time we have been able to create tremendous synergies between our technologies. We believe the signing of this new agreement will allow us to continue to develop and deliver the most advanced solutions to our customers."

"As we continue to expand our products into non-memory areas, our technology licensing business continues to be a significant part of our overall diversification portfolio," said Bing Yeh, president and CEO of SST. "Samsung is extremely strong in the ASIC and embedded flash market and we believe this agreement will enable them to succeed in these markets. The endorsement of SST's SuperFlash technology for 130-nanometer technology node is a tremendous validation of our embedded flash technology and the significant momentum we have made in establishing SuperFlash as the technology-of-choice for embedded applications."

About Samsung Electronics

Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2004 parent company sales of US$55.2 billion and net income of US$10.3 billion. Employing approximately 113,600 people in over 90 offices in 48 countries, the company consists of five main business units: Digital Appliance Business, Digital Media Business, LCD Business, Semiconductor Business and Telecommunication Network Business. Recognized as one of the fastest growing brands, Samsung Electronics is a leading producer of digital TVs, memory chips, mobile phones, and TFT-LCDs. For more information, please visit http://www.samsung.com

About Silicon Storage Technology, Inc.

Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of memory and non-memory products for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. Leveraging its proprietary, patented SuperFlash technology, SST is a leading provider of nonvolatile memory solutions with product families that include various densities of high functionality flash memory components and flash mass storage products. The Company also offers its SuperFlash technology for embedded applications through its broad network of world-class manufacturing partners and technology licensees, including TSMC, which offers it under its trademark Emb-FLASH. SST's non-memory products include NAND controllers, smart card ICs, flash microcontrollers and radio frequency ICs and modules. Further information on SST can be found on the company's Web site at http://www.sst.com .