Faraday Receives the Frost & Sullivan Award for Customer Service Innovation in the Area of VLSI Design Services

Hsinchu, Taiwan, and Sunnyvale, California -- February 14, 2007 -- Faraday Technology Corporation (TAIEX: 3035), a leading ASIC and silicon IP provider, today announced that it has been recognized by Frost & Sullivan as the recipient of the 2006 Award for Customer Service Innovation in the field of fabless ASIC design service and silicon IP development. This prestigious award is presented to Faraday after F&S' reviewing and analyzing a total of 15 companies in the VLSI design services segment and conducting detailed interviews with 5 finalists. Its innovative customer service strategies have resulted in increased customer interaction, fast response to customer queries, and immediate attention to customer needs.

Faraday's offering of high-quality ASIC design services are backed up by excellent customer support – starting from discussions prior to sales to providing quality assurance at production stage. The company has strong, dedicated, back-end design service and production service teams that help customers manage production and delivery logistics, diagnose problems, and improve the yield rate in quick time.

Customers also benefit from Faraday's solid relationship with silicon foundries, the EDA tool vendors, and the testing/assembly houses in terms of cost reduction by the shuttle bus service and a robust back-end design flow. “Faraday acts as an aggregator to the customers as it collectively negotiates the wafer price with the foundry as well as assembly and testing cost with other manufacturing partners,” says Frost & Sullivan Research Analyst Jagadeesh Sampath. “Therefore, the company makes sure that each and every customer gets the product at a lower price than each can get by negotiating on their own.”

“We are pleased to receive this F&S award, and especially for ‘Customer Service Innovation‘ since we've placed this always as our top priority. This award is a great milestone for Faraday. We will keep coming up with more innovative ways to maximize our customers' benefit,” said Dr. George Hwang, Vice President of R&D and International Business at Faraday.

About Frost & Sullivan Award

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global markets for demonstrating outstanding achievement and superior performance in areas such as leadership, technological innovation, customer service, and strategic product development. Industry analysts compare market participants and measure performance through in-depth interviews, analysis, and extensive secondary research in order to identify best practices in the industry.

About Faraday Technology Corporation

Faraday Technology Corporation is a leading silicon IP and fabless ASIC vendor. The company's broad silicon IP portfolio includes 32-bit RISC CPUs, DSPs, MPEG4, H.264, PHYs/Controllers for USB 2.0, Ethe rnet, Serial ATA, PCI Express, Cell Library and Memory Compiler. With more than700 employees and 2006 revenue of US$171million, 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 markets. 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: www.faraday-tech.com

About Frost & Sullivan

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com.