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Set-top Boxes Using Spreadtrum's AVS SV6111 Decoder Chip Passed China Netcom's Commercial Trial Tests

Oct 10, 2007

Shanghai, China, October 10, 2007-Spreadtrum Communications, Inc. (NASDAQ: SPRD), one of China's leading wireless baseband chipset providers, today announced that set-top boxes (STB) using Spreadtrum's AVS SV6111 chip solutions successfully passed the first commercial trial tests based on AVS standard conducted by China Netcom (CNC) in Dalian, achieving all performance goals set by China Netcom for this commercial trial.

The SV6111 chip being used by one of the STB manufacturers is the industry's first commercially produced AVS audio/video decoder chip, which Spreadtrum announced at its Technology Forum in August 2007. The SV6111 product includes all of the decoding functions required by the AVS standard, while at the same time supporting MPEG-2 specifications. Utilizing advanced SoC technology that integrates critical software with the hardware processing system, the SV6111 provides a robust AVS audio/video decoder solution with a low cost of production and low power consumption.

In addition, set-top boxes using Spreadtrum's SV6111 solutions were the only ASIC-based solutions among those that participated in the tests. Compared with the other set-top boxes using non-ASIC solutions, the Company believes that set-top boxes using Spreadtrum's solution generally should have lower cost and higher reliability.  Commenting on the successful outcome, Dr. Qiang Cao, Spreadtrum's Vice President of Marketing, said "The successful trials demonstrated the feasibility and applicability of our solution in a real world application and showed our continuing commitment to the promotion of the AVS standard."

Spreadtrum has commenced sampling of the SV6111 and expects deployment by its customers of commercial products based on these chips in the near future.

AVS is the second generation source coding-decoding standard independently created by China. For more information on AVS, please go to the Audio and Video Coding Standard Workgroup of China, at http://www.avs.org.cn/en/.