Global Silicon secures $10 million funding round

London, 7 September 2005

Global Silicon, a leading supplier of integrated circuit solutions for the consumer electronics industry, announces that it has raised an additional $10 million of funding. Quester, one of the UK's leading independent venture capital groups, led the investment round alongside other investors including Celtic House and MTI Partners. The new funds will enable Global Silicon to add to its product range and expand its operations in Cambridge and China.

Bill Jeffrey, Chairman of Global Silicon commented: "This is a very important step for the company. This new capital will be used to recruit new engineers and further develop our software and chip design resources in Cambridge, application engineers in Fenggang, China and strengthen our management team with the appointment of a CEO. Our lead product, Xin is currently being sold in audio systems in the UK and Europe and we will introduce further audio products during 2006. I am very pleased to have gained the support of three leading venture capital houses."

Jeremy Milne of Quester and Roger Maggs of Celtic House have joined John Polden of MTI Partners on the Board of Global Silicon.

Jeremy Milne, Director at Quester said: "Global Silicon has both a talented and committed technical team and a world class product. With these new funds, the company will be able to augment the commercial and sales skills of the company. This is an important deal for Quester as it enables us to leverage for the first time our developing presence in China having established a Quester office in Hong Kong in June 2005."

Founded in 2000, Global Silicon has developed the most cost effective solution for both low cost and high end CD based systems. Funding from its foundation up to the current round was provided by MTI Partners. Chip sales to Chinese based audio manufacturers are growing rapidly with end products readily available in the UK high street. Global Silicon will also be seeking to exploit its Intellectual Property by expanding into other consumer products.

Global Silicon was advised by FirstCapital, the specialist technology corporate finance adviser.

About Global Silicon

Global Silicon is a fabless semiconductor company founded in 2000 that designs, develops and markets proprietary mixed signal chips (IC's) for the consumer electronics market. Global Silicon's Xin chip, which went into production in late 2004, was used to launch the world's first MP3 and Windows Media Audio (WMA) fully compliant CD Boombox (both Packard Bell & Goodmans brand). This chip is targeted at the very rapidly growing market for CD digital audio players, fuelled by the widespread availability of digital music from download sites, such as iTunes and Napster.

Global Silicon allows its customers to rapidly introduce new products which are light, power efficient, reliable and low cost. The key end customers are the large retailers such as Dixons, Argos and Walmart who are supplied by the major Chinese OEMs. Global Silicon has established relationships and multiple design wins with several of the major Chinese OEM's and is addressing others through distributors. High volume production is expected to commence during 2006. Based in Marlow, Bucks and Cambridge, Global Silicon plans to rapidly expand its engineering effort in Cambridge whilst growing sales from its Fenggang office.

For further information visit www.global-silicon.com

About Quester

Founded in 1984, Quester is an independent venture capital company specialising in unquoted growth companies and has approximately £250 million under management. Quester focuses on producing diversified portfolios for investors. It has teams who specialise in two areas - information and communication technologies, and healthcare and life sciences. Quester manages venture capital funds on behalf of international institutional investors and funds from academic institutions including Oxford, Bath, Bristol and Southampton Universities and a consortium of East Midlands' universities. It also has three listed venture capital trusts.

For further information visit www.quester.co.uk