Exhibit 99.1
[ESS LOGO] NEWS
FOR IMMEDIATE RELEASE
Contact Information:
ESS Technology, Inc. Rebecca Mack
Investor Relations Bergman Mack & Associates
(510) 492-1161 (949) 981-4496
ESS TECHNOLOGY ACQUIRES PICTOS TECHNOLOGIES, INC.
ACQUISITION EXPANDS ESS's DIGITAL CONSUMER PRODUCT OFFERINGS WITH DIGITAL
CAMERA AND CAMERA PHONE IMAGING SOLUTIONS
FREMONT, CALIF., JUNE 9, 2003--ESS Technology (Nasdaq: ESST), a leading
supplier of silicon solutions for digital video and audio consumer electronics
today announced that it has acquired Pictos Technologies Inc. for $27 million in
cash. Pictos Technologies, based in Newport Beach, Calif., is a privately held
company that designs, manufactures and markets digital imaging semiconductor
products. The acquisition expands ESS's product lines in the digital consumer
electronics market with advanced CMOS sensor and image processor solutions for
digital still cameras and cellular camera phones.
Pictos Technologies was created in July 2002 when Conexant Systems, Inc
spun off its digital imaging semiconductor business and merged it with Zing
Networks, an early leader in advanced imaging and connectivity software. Pictos
develops and supplies image processors, CMOS image sensors, camera modules and
embedded software. Current Pictos consumer products include one of the world's
smallest VGA color sensors, CMOS imaging sensors and modules, as well as the
fastest click-to-click, high performance low power image processors that
support multiple digital output formats. These product lines cover a wide range
of digital still camera and cellular camera phone products.
Cellular camera phones are the fastest growing market segment in
consumer products, with an expected volume of 35 million units this year, and
140 million units forecast in 2006. Digital still cameras also present an
attractive market opportunity with 40 million units forecasted for 2006. Pictos'
CMOS sensor and image processor products are well positioned to address both of
these exciting markets.
Robert Blair, president and chief executive officer of ESS Technology
commented, "We are excited by the opportunities created for ESS by this
acquisition. Pictos Technologies has a talented team of employees and
exceptional imaging technology for CMOS sensors, image processors, and advanced
camera products that complement ESS's current consumer digital entertainment
offerings. This acquisition expands ESS's digital consumer product lines with
advanced technology imaging solutions targeted for the fast growing consumer
digital imaging markets."
"We believe that combining ESS's strong manufacturing and proven
marketing abilities with Pictos's advanced camera products should enable ESS to
become a significant player in this large and rapidly growing new market," Mr.
Blair concluded.
Patrick Henry, president and chief executive officer of Pictos
Technologies said, "We are very excited to be joining the ESS family. ESS has a
proven track record of providing leading-edge silicon and system solutions to a
variety of high volume digital consumer markets. ESS also has well-established
market channels and the customer relationships necessary to take Pictos to the
next level of growth. By combining Pictos's leading technology and established
market presence with ESS's strong resources and organizational knowledge of what
it takes to win in high volume consumer electionics markets, ESS will be
positioned to grow market share and develop new cost effective products for the
emerging digital imaging markets."
Fred Chan, chairman of ESS Technology said, "ESS's long term strategy
is to introduce new products and solutions targeted for the consumer digital
entertainment market. Today ESS is the market leader in digital video solutions
and this acquisition expands ESS into the growing digital camera market with the
addition of a complementary product portfolio. This is an important acquisition
that will help ESS continue to execute our vision of providing complete
solutions for the consumer digital entertainment market."
ANALYSTS CONFERENCE CALL
ESS management will hold a conference call on Monday June 16 to discuss
this acquisition and its expected effects on ESS in the future. This call will
be held at 5:00 PM EDT (2:00 PM PDT) and can be accessed from the ESS website
(www.esstech.com) or by calling 888-328-2936.
ABOUT ESS TECHNOLOGY
ESS Technology, Inc., is a leading supplier of high-performance
feature-rich chips, applications and solutions for digital entertainment
markets. ESS provides advanced products that enable the emergence of digital
home systems that deliver and manage entertainment and information in the home.
ESS, headquartered in Fremont, California, has R&D, sales, and
technical support offices worldwide. ESS Technology's common stock is traded on
the Nasdaq National Market under the symbol "ESST". ESS Technology's web site
address is: http://www.esstech.com.
The matters discussed in this news release include certain
forward-looking statements that involve risks and uncertainties, including, but
not limited to, the impact of competitive products and pricing, the possible
reduction of consumer spending occasioned by general economic conditions, the
timely availability and acceptance of ESS's new products, the dependence on
continued growth in demand for consumer multimedia products, the uncertainty of
the outcome of any litigation proceedings, and the other risks detailed from
time to time in the SEC reports of ESS, including the reports on Form 10-K, Form
10-Q and Form 8-K (if any) which we incorporate by reference. Actual results
could differ materially from those projected in the forward-looking statements.
We undertake no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events, or otherwise.
All trademarks mentioned in this news release are owned by their
respective holders and are used in this news release for identification purposes
only.
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