In the past a few years, Penstar has grown from a small entity to a young yet influential player in the market place. Penstar today is a leading provider of high performance standard definition and high definition video decoder IC that is fully compliant with Chinese Audio Video Coding Standards (AVS). As a technology company, Penstar has developed and accumulated an impressive portfolio of IPs and core technologies. Such a strong technology possession sets a solid foundation for Penstar¡¯s product development and a significant reduction of time-to-market of future products. It also enables Penstar to be more responsive to market condition changes and to demands of our customers. Providing timely solutions to customer needs is an extremely important success factor in the ever-changing China consumer electronics market.

Technology alliances in China balance rapid technology trends and limited resources in product development and supply chains. Penstar in the past several years has established extensive business relationship and co-development partnership with our customers. Our products have received significant interests and commitments from several key customers. We have cultivated strong relationship with suppliers from foundry, packaging, testing to mask making and tooling and established a relatively complete local supply chain for our product engineering prototyping and production. It lays good foundation for our future production ramp up and forms an integrated process plateform encompassing from design to manufacturing, packaging, and testing.

Leveraging a broad intellectual property portfolio and expertise in integrated circuit (IC) and embedded real time software technology, Penstar thrives at the intersection of silicon, software, and customized applications and delivers complete and innovative solutions for our customers.