N o v e m b e r, 2 0 0 7Corporate Profile

: 16 years plus
: 67 quarters: 1020 Consecutive profitable years

 Consecutive profitable quarters

 Employees (AVerMedia Group)

Updated on Nov. 2007

 Branding / ODM with premium value : 70% / 30%: US$ 104.9 Million

 Annual Turnover (2006)

Founded in 1990, Specializing in Designing, Manufacturingand Marketing of Multimedia Entertainment, Presentation andDigital Surveillance Products.

AVerMedia Overview

2• Based on the evaluation by the 2006 Taiwan Superior
Brand committee, the company is awarded for its
outstanding performance and innovation in researchand development, product quality, branding strategy,and branding achievement.

2006 Taiwan Superior Brand

3AVerMedia Wins 2007
Corporate Social
Responsibility Award

Bangkok ,Thailand

Moscow,
RussiaTaipei,Taiwan

SuZhouChina

Ruesselsheim,
Frankfurt,
Germany

Milpitas,
CA
USA

Integrators, VARs, and ODMs Over 75 Countries

Subsidiaries and Global Network of Distributors, SystemMadrid,
Spain

Paris,
Milton Keynes, FranceLondon,
UK5Global Marketing & Service Network

(54)%
46 %(25)%
20 %0%
21 %(1)%
22 %(53,798)
44,999(24,796)
20,204402
20,605(1,160)
21,765COGSGP

Operating Expenses

Operating Income

Income before Tax

Income Tax Exp. (Ben.)

Fully Diluted EPS(NT$)

Net Income

3.55

100 %

98,797

Net Sales

Net Non-op Items

2007 3rd-Q

Amount : US$ k

1.96

11,883(651)

11,231

1,019

10,212(22,848)

33,060(42,805)

75,865

16 %(1)%15 %

1%13 %(30)%

44 %(56)%

100 %2006 3rd-Q

81 %

83 %

83 %

98 %9%

36 %

26 %

30 %

YoY %

2007 3rd Quarter Financial Results, YoY

19 %2%

15 %

18 %

109,310Equities

Full consolidated base36,50775 %25 %145,817 100 %Liabilities

Total Assets

27,419Fixed Assets

21,859Inventory
2,582

25,972

Accounts
Receivable

L-T Investment

52,500Cash &Equivalent36 %2007 3rd Q.

Amount : US$ k

21 %

3%

10 %

13 %

41 %

99,192

34,78874 %26 %133,979 100 %

28,434

3,430

13,573

16,92054,601

2006

87,94036,765

124,705

20,695865

10,867

14,757

17 %

1%

9%

12 %

49 %

71 %

29 %

100 %

2005
61,354

Balance sheet highlights

64 days

AR Turnover

Debt ratio

25.04 %

101 days19.90 %ROA

Inventory Turnover

26.55 %ROE

2007 3rd-Q.
(YTD)

25.96 %

86 days

57 days12.93 %

17.24 %

2006

29.48 %

79 days

60 days11.86 %

16.82 %

2005

Key Financial indicators

40.67 %

74 days

42 days14.65 %

22.60 %

2004

Net Income

RevenueAmount : US$ k

45,00040,00035,00030,00025,00020,00015,00010,000
5,000
0

3,150

21,2192005-Q1

1,780

17,146

2005-Q2

3,636

22,1402005-Q3

6,230

29,686

2005-Q4

3,546

21,444

2006-Q1

2,826

23,6602006-Q2

5,500

29,111

2006-Q3

6,516

26,355

2006-Q4

5,064

26,496

2007-Q1

06,041

32,236

10,66040,065

2007-Q3

2,000

4,000

6,000

8,000

10,0002007-Q2

2005-Q1 2005-Q2 2005-Q3 2005-Q4 2006-Q1 2006-Q2 2006-Q3 2006-Q4 2007-Q1 2007-Q2 2007-Q3Revenue
Net Income

Amount : US$ k

12,0002005~07-3Q Quarterly Revenue/Profit2003

2002

2004

16.52 %

22.60 %

126.92 %Assets / Net
Equity12.71 %

90.49 %

72.52 %

Sales / Assets

ROE = Profit / Net
Equity13.97 %

13.81 %

Profit / Sales

17.91 %

141.67 %2003

88.66 %

16.52 %

2004

2005

22.60 %

2006

16.29 %

17.24 %

79.37 %

133.35 %2007-3rd.Q

22.03 %

26.55 %90.34 %

133.40 %16.82 %

141.81 %72.32 %

16.40 %

2005

17.24 %

133.35 %79.37 %

16.29 %

2006

Profit / Sales
Assets / Net Equity

16.40 %

16.82 %

72.32 %

141.81 %154.29 %88.66 %ROE = Profit / Net Equity
Assets / Net Equity

13.97 %

17.91 %

90.49 %

141.67 %13.81 %

12.71 %

72.52 %

126.92 %154.29 %2002

0.00 %

5.00 %

10.00 %

15.00 %

20.00 %

25.00 %

30.00 %Breakdown of ROE

26.55 %

133.40 %90.34 %

22.03 %

20073rd.Q

180.00 %160.00 %140.00 %120.00 %100.00 %80.00 %
60.00 %
40.00 %
20.00 %
0.00 %

00.5

11.5

22.5

3

3.5

2.00

1.37

1.57

1.52

0.79

0.51

2005

2004

2003

2002

2001

50 %

44 %

60 %

55 %

58 %

85 %

2003

2.34

Cash

2002

2006

Year

2001

1.02

1.43

EPS
Cash
Stock

0.51

0.99

1.01

1.26

1.00

0.365

50 %

56 %

40 %

45 %

42 %

15 %

2005

3.00

Stock

2004

3.26

1.02

1.78

2.53

2.83

2.37

2.365

Total

2006

3.05

Dividends distribution

2002

47,78847,788

2002
74,2002003

87,452

2004

2004

87,452

90,191

2005

2005

2006

2006

104,932

104,932

90,191

Compound Annual Growth Rate : 21.73 %Net Sales

Amount :US$ k

Net Sales

2003

74,200CAGR : 21.73%

Amount : US$ k

020,00040,00060,00080,000100,000

120,000

Revenue evolution12

6,392

4,487

R&D Expenditures

8,448

8,448

2004

2004

Compound Annual Growth Rate : 21.89%

2003

2003

2002

2002

4,487

6,392

CAGR : 21.89%

Amount : US$ k

Amount :US$ k

0

2,000

4,000

6,000

8,000

10,00012,000

10,310

2005

2005

9,903

2006

2006

10,310 9,903

R&D Expenditures13

- Digital Video Surveillance

Network Video Product- Document Camera

Presentation Product- Watch TV on NB solution- Analog TV Tuner- Hybrid TV Tuner- Digital TV Tuner- Digital Home Solution (ViiV, MCE & Vista)- External TV Tuner Box

Multimedia ProductProduct Portfolio

14

– Strong demand in Notebook PCs: annual
demand of 75 million sets ( less than 2% ofattachment rate of TV Tuner in Notebook PCs
except Japan)• Multimedia Products

External marketing trend

15

Business ()Home ()

Notebook demands

16

Analog Worldwide

Hybrid DVB-T

Analog Worldwide

Hybrid ATSC

Hybrid Mini PCI

Hybrid DVB-T

DVB-T Mini cardHybrid Mini card

DVB-TATSC

Hybrid PCIe

Analog Worldwide Hybrid DVB-T

DVB-H Mini card

ODM solution

17

DVB-T USB

DVB-H SDIO

MiniPCI TV Tuner card for NB

18

ODM main customers

19Sony Notebook TV inside

20

RB Series - HomeLS1 Series - Home

Sony Desktop TV inside

21

22

http://event.asus.com/2006/nb/fullline/mobiletv/eng/

Aspire 5650/5670

Aspire 9520

Aspire 9120

Aspire 9800/9810

acer Aspire TV Inside23

DELL Desktop

24

AVerMedia AVerTV PVRHigh-Quality TV Tuner Card TV Tuner Card, H/W compression

AVerTV (Studio) 503

 Desktop PC Solution

Express Tuner Card

AVerTV Hybrid Express Slim

USB TV Tuner,
H/W compressionAVerTV USB MCE

 Notebook PC Solution

 Watch, Record & Enjoy TV / Video on PC

Analog TV Tuner / PVR

25

Satellite

Deadline ofAnalog TVBroadcasting
Terminated

DVB-C
DVB-C

ISDB-TJapan

Taiwan DVB-T

DVB-S

DVB-S

DVB-S

2008

2010

2010-2015

Open Cable DSS, DVB-S 2009
DVB-C

ATSC

Terrestrial Cable

Digital TV Broadcasting Standard

Europe DVB-TUSA

Area

Emerging digital TV broadcasting in the forthcoming years.

26

Deadline of the digital TV broadcastingVCD\DVD Player

DVB-TAnalog TV

PCI Solution

CardBus Solution

EXPress Card Solution

USB Solution

 Watch Digital Terrestrial and Analog TV on PC

Hybrid TV Tuner Card27

••

Microsoft will launch Windows Vista at the beginning of 2007.
Most significantly, Windows Vista includes all of the Windows Media Center capabilities forturning your PC into an all-in-one home entertainment center. Windows Media Center inWindows Vista provides new ways for you to enjoy your music, photos, DVD movies. andrecord and watch your favorite TV shows (even HDTV).

Viiv & Windows Vista28

$ 299 (199)
not available for retail$ 239 (159)$ 199 ( 99)$ 399 (259)

Windows Vista Enterprise

Windows Vista Home Premium

Windows Vista Home Basic

Windows Vista UltimatePrice

Windows Vista Business

Vista VersionVXVXXTV Function

Santa Rosa

Windows OS vs PC Shipment

29

30

South of Taiwan starts
broadcasting to enter into the trial stage.
AVerMedia provides DVB-H platform aspart of the solutions.

Watch DVBDVB-H TV Solution

Digital Terrestrial TV Set-top-Box

AVerTV DVB-T STB7

TV/Video viewing w/ highdefinition 1920x1200（WUXGA）
TV BoxAVerTV DVI Box9

 Watch Analog TV / Video on PC Monitoror Watch Digital Terrestrial TV on PC Monitor/TV

External TV Tuner BOX

31

Digital Portable DocCamGooseneck DocCam

High Quality, Fast Auto Focus,
Excl. AVERZOOMTM

AVerVision300AF

AVerVision130

w/Optical Zoom, Smart Focus

Digital Portable DocCam

AVerVision330

PIP & Spilt Screen, 48X total ZOOMSuper High Quality, Fast Auto Focus,

Digital Portable DocCam

AVerVision SPC300

Digital Platform DocCam

AVerVision530

 Display 3D Objects or Documents on Projector /Monitor / TV

Portable Document Camera

32Document Camera Applications

33

Top 10 wish list as selected byAmericans in education field

34

AVerDiGi NV6480 Express

AVerDiGi NV5000

DVR with video loop out ports.

- Advanced 16 Ch. hybrid embedded

Standalone DVRs – PC base

- Hybrid standalone DVR, 16 Ch.
Real Time Digital Video Recorder

AVerDiGi SA6000E Pro

Windows DVRs

35-Single 8 Ch. DVR card,-Single 16 Ch. DVR PCI Express, -Up to 16 Ch.,120~240fps
240fps display/recording, 480fps display/recording
display/recording, remote
H/W H264 compression
monitoring via internet or PDA

AVerDiGi NV7000H

AVerDigi Surveillance

AVerDiGi SA6416

NV Series

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4CH Mobile DVR

Mobile DVRs

AVerDiGi EB1304 MOB

Standalone DVRs

digital video recorder w/network access- 4 Ch. standalone security

AVerDiGi EB1704Hybrid
DVR- 4CH Multiplex Networking

AVerDiGi EB1304NET

AVerDigi Surveillance

36The AVerDiGi Central Monitoring System Software (CM3000)enables users
to access and monitor multiple DVRs simultaneously for a wide range ofapplications. Features include: instant notification on DVR latest status orevents, supports remote PTZ and I/O control for alarm events, up to quadmonitor outputs, full remote DVR control, etc.

Surveillance Application

37

Presentation
Product

Growth Drivers•Culture•Technology•BrandMultimedia
ProductNetwork VideoProductInternal organization capability

38

39

• Core Value– Down-to-Earth•Culture– Value Creation•Technology– Self- Devotion•Brand– Service to Society• Humanity- Self Awareness / Transcendence /Honesty & Integrity

Culture•Technology•Brand– Video conversion between analog and digital– Leading technology for TV tuners in the fieldof Notebook PCs– Patents : 93 of patents being granted, 234 ofpatents application in the process•Culture– Product awards

Technology40

•Culture•Technology•Brand• DoCam: Distinguished as one of the firstmovers with strong presence in K-12. Education
market in the U.S. with brand recognition inheritedfrom the glamour of previous product lines.

• MultiMedia products: Brand premium in certain
geographical areas, like Spain, Russia and EastEurope etc.

Brand41

42– Number of schools: the maximum market size
can be derived from number of schools. Take
USA as an example, there are 90,792 K-12
schools in the US. If we assume each school has
30 to 40 classrooms and each classroom shallinstall one DocCam, the potential market is 3 M
units in total.

• No statistic data investigating the market
size of DocCam.

Presentation Products Potential market size Passed the Quality System Audit by first tier companies.

 OHSAS:18001

 ISO9001: 2000 Version Quality System- Lead – Free Process (by the end of 2006)

 ISO 14001 Environment Manage System

43

Quality & Environment Management