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"The ColdThunder(TM) chip uniquely complements our highly successful Vibratto II processor to provide a complete digital DVD receiver solution at an extremely low cost," said Patrick Ang, executive vice president and chief operating officer of ESS Technology. "This product will provide our DVD customers with a high quality digital audio solution for home theater applications, continuing to build upon the strong audio expertise on which ESS was founded."

Compatible with most major power devices, the ColdThunder(TM) technology exploits a proprietary, innovative HyperStream(TM) signal processing architecture to deliver outstanding performance at high efficiency with low noise and industry-leading low distortion. In addition to its high quality multi-channel digital amplification, ColdThunder(TM) provides for six multiplexed stereo analog audio inputs to its three integrated analog to digital converters, so that analog audio sources such as AM/FM tuners or karaoke microphones can also be digitally amplified with minimal design effort. ColdThunder(TM) also includes bass management with programmable crossover filters, loudness control and extensive downmix capability for maximum flexibility. Dedicated audio outputs for headphones and sub-woofers are also provided, configurable as either digital or analog outputs.

The ColdThunder(TM) will be demonstrated at the 2004 Consumer Electronics Show in Las Vegas. A private audio demonstration may be scheduled by contacting Carol Johnson at 510-492-1713 or email Carol.Johnson@esstech.com.

About ESS Technology

ESS Technology, Inc., designs and markets high-performance digital video processor and imaging sensor semiconductors for the consumer digital entertainment, digital photography, camera phones and digital home markets. ESS products include highly integrated chips for DVD players, DVD recorders, VCD players, digital media players, digital audio systems, digital still cameras and camcorders, and camera-enabled cellular phones.

ESS, headquartered in Fremont, California, has approximately 400 employees in North America and over 100 employees in Asia providing R&D, sales, and technical support worldwide. For more information, please visit the company's web site at: 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, difficulties inherent in integrating acquired businesses with ESS, 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 possible reduction f consumer spending occasioned by terrorist activity and armed conflict, 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.

CONTACT:

ESS Technology, Inc., Investor Relations, +1-510-492-1161; or
Rebecca Mack of Bergman Mack & Associates, +1-949-981-4496, for ESS
Technology

Web site: http://www.esstech.com/

Source: ESS Technology, Inc.