Silicon & Software Systems (S3) announces a Euro10 million investment by ACT Venture Capital

Dublin, Ireland 21st December 2005 – Silicon & Software Systems Ltd. (S3), a leading provider of Semiconductor Intellectual Property, Software Products and Design Solutions for the Mobile, Digital Consumer, Communications and Medical Systems markets, today announced that it has closed a €10 million investment deal with ACT Venture Capital.

This investment will enable S3 to accelerate its development of highly valuable technology in leading edge markets, further expanding its portfolio of design solutions and capabilities. This funding will also support the expansion of S3's business into Asia and further development of its Sales and Marketing operations in Europe and the United States.

As part of this agreement, Philips Electronics via Philips Electronics Ireland Limited (PEIL) will maintain a strategic shareholding in S3 and will continue to be a key customer and technology partner of the company.

Founded in 1986, and headquartered in Dublin, Ireland, S3 is a leader in the provision of advanced Integrated Circuit and Embedded Software solutions to some of the world's leading companies including Texas Instruments, Lucent Technologies, Philips, Toshiba, STMicroelectronics and Sky. S3 has technology partnerships and collaborations with companies such as Intel, IBM, Xilinx and OpenTV. S3 is the largest technology company of its type in Europe with approximately 300 employees. S3 has 185 employees in Ireland, and operations in a further five countries; U.S.A., the Netherlands, Poland, Czech Republic and the U.K. and serves an established global client base in the USA, Europe and Asia/Pacific.

S3's portfolio of world-class Products, Intellectual Property and Design Solutions includes a range of advanced Mixed Signal IP, Broadband Access Solutions for Intel's latest Network Processor devices (S3AxS™) and the world's first DVB-H Software solution for the emerging Mobile TV market (onHandTV™).

John O'Brien, Chief Executive Officer of S3 said, "Our products and expertise have positioned us as a leader in IC Design, Networking and Consumer-Wireless technologies. This investment will enable S3 to accelerate the development of our innovative product and services businesses in these areas and in particular to expand our customer reach in Asia."

John O'Sullivan, Partner at ACT Venture Capital added, "We are very excited to be involved with S3 at this time as the company builds on its impressive track record in the provision of Products and Design Solutions to some of the world's largest Semiconductor and System Companies. The S3 Management team is uniquely positioned to leverage opportunities in the convergence of Mobile , Networking and Storage technologies."

Cel O'Reilly, Managing Director of Philips Electronics Ireland Ltd said, "S3 is an extremely innovative Irish-based company with an outstanding reputation in its chosen technology sectors. We consider that now is an opportune time to provide S3 with a platform for quantum growth with an additional investment partner, namely ACT Venture Capital. We look forward to continuing our participation in S3's future success."

About Silicon & Software Systems Ltd. (S3)

S3 designs Integrated Circuits and Embedded Software Solutions for the world's leading technology companies. Since 1986, S3 has been combining a unique mix of design expertise, customizable IP and products to deliver cutting-edge design solutions on time, ensuring clients get to market faster.

Included amongst S3's clients and partners are Intel, IBM, OpenTV, Philips, STMicroelectronics, Sky, Texas Instruments, Toshiba and Xilinx. S3 provides design solutions in four key markets: Mobile , Digital Consumer, Communications and Medical Systems.

S3 has achieved several technical world-firsts and has received many international awards and recognition for its achievements including winning the coveted Supplier Excellence Award from Texas Instruments.

For more information visit: http://www.s3group.com/

About ACT Venture Capital:

ACT Venture Capital is Ireland's largest venture capital management company. It is funded by leading Irish, European and US institutional and fund of fund investors. ACT invests primarily in information & communications technology and life sciences companies in Ireland and the UK which possess innovative technologies aimed at international markets. ACT has a portfolio of over 30 such companies and funds under management of €350 million. ACT's better known investments in the semiconductor sector include Amphion, Alphamosaic, BCO Technologies, Massana, Frontier Silicon and Eblana.