Ralink Technology (TAIEX:3534) Company Profile

Fast. Far-reaching. Reliable

Ralink Technology Corp.

Ralink Technology

Founded in 2001 & shipping since 2003

Headquartered in Hsinchu, Taiwan

Branch Offices in US, Europe, Japan, China

660 employees worldwide

Top 4 WLAN IC-solution provider with 12~15% global market share; top 3 xDSL IC-solution provider with 22~25% global market share.

Taiwan IPO in April, 2008

– Stock Code: 3534 (TT)

– Capital: 42.2 million (USD)

– Market Cap: 543.2 million (USD)

Note: USD:NTD=1:29.3; stock quote at NTD 91 per share. (As of February 17, 2011)

- Ralink Confidential -2

Ralink Headquarters - Hsinchu, Taiwan

Global Wi-Fi Market

675.9M

945.4M

1,257.5M

1,607.5M

1,922.8M

Source: In-Stat, 2010

(Year)

(Unit)

Global ADSL MarketBroadband Subscribers (in millions))

Year

xDSL accounts for ~ 60% of the global broadband market.

Source: iSuppli, 2010

Wireless LandscapeRalink is focusing on Wi-Fi IC design

WPAN

Bluetooth 802.15.1 – 2.4Mbps

ZigBee802.15.4 – 20kbps

UWB802.15.43– 55Mbps

WMAN

WiMAX802.16 d.e 50 – 134 MbpsWLAN

Wi-Fi 802.11a – 54Mbps (5GHz)802.11b – 11Mbps (2.4GHz)802.11g – 54Mbps (2.4GHz)802.11n – 150~600Mbps (2.4GHz/5GHz)

3G 1~3.5 Mbps3.5G 3.6~7.2 Mbps

Cellular

- Ralink Confidential -5

Ralink’s Shipment Record

25.8 M units shipped in 4Q10, representing an 15.2% QoQshipment growth, and an 49% YoY shipment growth

Totaled 2010 shipped 88.4M units, representing a 67.7% YoYshipment growth.

-6

Shipment Breakdown by Applications

Broadband

50%

PC/NB

15%

CE

6%

Retail

29%

Wi-Fi v.s. ADSL(4Q10)

Chipset applications(4Q10)

-7

Wi-Fi70%

ADSL30%

NTD (Thousands) 2010 2009 YoY

Net revenues 7,360,927 100% 5,086,535 100% 44.7%

Gross profit 3,124,266 42.4% 1,956,156 38.5% 59.7%

Operating expenses (2,258,794) (30.7%) (1,538,451) (30.3%) 46.8%

Operating income 865,472 11.8% 417,705 8.2% 107.2%

Non-operating income (loss) 58,181 0.8% 83,346 1.6% (30.2%)

Pretax income 923,653 12.6% 501,051 9.8% 84.3%

Net income 910,981 498,449 82.8%

EPS (NT dollars) 6.5 4.0 62.5%

Employee profit sharing 289,097 158,174

2010 Ralink’s Income Statement

※Unaudited Concise Consolidated Income Statement

NTD (Thousands) 4Q10 3Q10 QoQ

Net revenues 1,814,658 100.0% 1,905,736 100.0% (4.8%)

Gross profit 672,952 37.1% 843,955 44.3% (20.3%)

Operating expenses (618,992) (34.1%) (602,050) (31.6%) 2.8%

Operating income 53,960 3.0% 241,905 12.7% (77.7%)

Non-operating income (loss) (3,618) (0.2%) 26,646 1.4% (113.6%)

Pretax income 50,343 2.8% 268,551 14.1% (81.3%)

Net income 58,866 262,372 (77.6%)

EPS (NT dollars) 0.42 1.87

Employee profit sharing 16,377 79,017

4Q10 Ralink’s Income Statement

※Unaudited Concise Consolidated Income Statement

-9

Ralink’s Balance Sheets

(In NT thousands, except indicated otherwise) 4Q10 3Q10

Cash & Financial assets-current 5,879,480 5,224,076

Notes & Accounts receivable (net) 1,156,150 1,087,241

Inventory (net) 812,930 649,820

Total assets 13,703,509 7,512,249

Notes & Accounts payable 2,188,219 1,768,920

Long-term liabilities 443 933

Total liabilities 2,490,541 1,867,581

Paid-in capital 1,745,624 1,285,642

Total shareholders' equity 11,212,968 5,644,668

Key indices

Net value per share (NTD) 64.2 43.9

Current ratio 322% 379%

A/R turnover days 56 53

Inventory turnover days 58 50

※ Unaudited Concise Consolidated Balance Sheets

Launched mobile Wi-Fi product line for cell phones and portable consumer electronics.

Unveiled world’s 1st 30a profile vDSL chipsets on a 2-Layer board design

Demonstrated next generation wireless solutions and applications at CES 2011 including:

− Next-generation wireless display solutions

− Wireless Blu-Ray players

− Advanced wireless peer-to-peer connectivity solutions

− World’s 1st single-chip 802.11n+Bluetooth 3.0 for mobile computers

− Customer solutions including eReaders, Femtocells, 3G routers, cable modems, Internet radios, and other consumer electronics solutions

Recent Highlights

- Ralink Confidential -12

New Ralink’s Merger Progress

Consolidation Date : Oct. 1st , 2010

Paid-in Capital as of Dec. 31st, 2010: 140,049,811 shares

New Ralink’s Capital : 174,903,402 shares

Previous Share Swap Ratio : TrendChip : Ralink = 0.8209 : 1

Final Share Swap Ratio : TrendChip : Ralink = 0.7939 : 1

Thank You !!