Exhibit 99.1

                        GIGAMEDIA ACQUIRES GRAND VIRTUAL


TAIPEI, Taiwan, April 12, 2004 - GigaMedia Limited ("GigaMedia" or the
"Company") (NASDAQ: GIGM, www.giga.net.tw), a diversified provider of broadband
and entertainment services, announced today that it has acquired Grand Virtual,
a privately held software developer and application service provider based in
the Boston area, in an all-cash transaction valued at approximately US$32.5
million. The purchase was funded by existing working capital. Financial details
were not disclosed.

Established in 1997, Grand Virtual develops software for online entertainment
services, including online gaming and social networking. Grand Virtual, as an
application service provider, also offers "turnkey" solutions for games of skill
and chance, which it sells predominantly to online licensees in Europe and Asia.

Grand Virtual has approximately 40 employees and is based in Cambridge,
Massachusetts. There are no plans to relocate the company.

GigaMedia believes that the Grand Virtual acquisition will be accretive to the
Company's cash flows and earnings, and strengthens the Company's diversified
entertainment product portfolio. GigaMedia expects that Grand Virtual's
application software will provide the Company a secure, scalable technology
platform that can be used to provide a range of entertainment services.

ABOUT GIGAMEDIA

GigaMedia Limited is a diversified provider of broadband and entertainment
services in Taiwan. The Company's online/offline business model provides the
Company multiple distribution channels and the ability to meet future market
demands as technology drives new media and entertainment industry change.

GigaMedia operates Taiwan's two largest music store chains, Rose Records and
Tachung Records through its subsidiary G-Music. The Company also operates a
major Taiwanese broadband ISP, providing Internet access service and broadband
content with multiple delivery technologies. The Company offers interactive
Chinese-language multimedia Web sites through its Web destination
http://www.gigigaga.com. GigaMedia also provides broadband services to corporate
subscribers in Taiwan through its subsidiary Koos Broadband Telecom Limited.
Strategic investors of GigaMedia include the Koos Group, a major participant in
Taiwan's manufacturing, finance, telecommunications, media, and cable
industries. More information on GigaMedia can be obtained from
http://ir.giga.net.tw.

The statements included above and elsewhere in this press release that are not
historical in nature are "forward-looking statements" within the meaning of the
"safe harbor" provisions of the Private Securities



Litigation Reform Act of 1995. GigaMedia cautions readers that forward-looking
statements are based on the company's current expectations and involve a number
of risks and uncertainties. Actual results may differ materially from those
contained in such forward-looking statements. Information as to those factors
that could cause actual results to vary can be found in GigaMedia's Registration
Statement on Form 20-F/A filed with the United States Securities and Exchange
Commission in August 2003.


CONTACT:
GIGAMEDIA LIMITED
Brad Miller, Investor Relations Director
Country/City Code 8862 Tel: 8770-7966 ext. 1107
brad.miller@gigamedia.com.tw