SST: Financial Results for the First Nine Months of 2007

SST (Silicon Storage
Technology, Inc.
reported full results for the first, second and third quarters of 2007, and
filed its Quarterly Reports on Form 10-Q for the corresponding quarters
containing restated financial statements for the first, second and third
quarters of 2006 reflecting accounting adjustments as a result of the
Company’s recently completed voluntary independent review of its historical
stock option practices.

2007 Quarterly Results

Results for the three months ended March 31, 2007, June 30, 2007 and
September 30, 2007, include:

-- Product revenues for the first, second and third quarters of 2007 were
$88.2 million, $90.3 million and $97.8 million, respectively.
-- Licensing revenues were $9.3 million, $9.1 million and $9.7 million for
the first, second and third quarters of 2007, respectively.
-- Total gross margins were 27.2 percent, 25.8 percent and 31.5 percent
for the first, second and third quarters of 2007, respectively.
-- Total operating expenses for the first, second and third quarters of
2007 were $27.3 million, $32.7 million and $31.5 million, respectively.
-- Write-down of Investment in Grace Semiconductor: Subsequent to SST's
third quarter press release announcing its preliminary revenue results,
the Company reviewed the carrying value of its equity investments for
impairment.  During the Company's review of its non-marketable
securities, it determined that the value of its Grace Semiconductor
Manufacturing Corporation, or GSMC, investment was below its carrying
value.  Accordingly, the Company recorded an additional impairment
charge related to its investment in GSMC of approximately $19.4 million
in the third quarter of 2007.
-- Legal and accounting expenses for the stock option review were
$4.0 million in the second quarter and $2.3 million in the third
quarter of 2007.
-- Net loss for the first, second and third quarters of 2007 were
$1.3 million, $7.5 million and $16.6 million, respectively, or $0.01,
$0.07 and $0.16 per diluted share, respectively.

With the filing of its Quarterly Reports on Form 10-Q for the first three
quarters of 2007, SST has brought itself current with its SEC reporting
obligations and believes it has addressed NASDAQ Global Market listing
deficiencies associated with its prior inability to file such reports. The
Company expects to shortly submit a plan to the NASDAQ Listing Qualifications
Panel addressing its remaining listing deficiencies, including deficiencies
related to its inability to hold an annual shareholders meeting in 2007.

Silicon Storage Technology, Inc.