##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549





Form 10-K/ A


(Amendment No. 1)


|           |  |                                                                                             
|---------- |  | --------------------------------------------------------------------------------------------
|(Mark One) |  |                                                                                             
|þ          |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|          
|           |  | For the fiscal year ended December 31, 2005                                                 
|or        
|          
|o          |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|          
|           |  | For the transition period
    from           to          .                                  

Commission file number 0-26660





ESS Technology, Inc.


(Exact name of Registrant as specified in its charter)


|                                                                    |  |                                          
|------------------------------------------------------------------- |  | -----------------------------------------
|California                                                          |  | 94-2928582                               
|(State or other jurisdiction of
     incorporation or organization) |  | (I.R.S. Employer
     Identification No.)

|                                                                                 |  |                
|-------------------------------------------------------------------------------- |  | ---------------
|48401 Fremont Blvd., Fremont, California(Address of principal executive offices) |  | 94538(Zip Code)

Registrants telephone number, including area code:


(510) 492-1088


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


Common Stock, no par value


(Title of Class)


o þ


o þ


þ o


S-K 10-K 10-K. o


12b-2


o þ o


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












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EXPLANATORY NOTE


10-K/ 10-K 12b-15 13a-14 10-K/




---



##### 



ESS TECHNOLOGY, INC.


2005
FORM 10-K







TABLE OF CONTENTS


|             |  |                                                                                                    |    |      |    | 
|------------ |  | -------------------------------------------------------------------------------------------------- | -- | ---- | -- | 
|             |  |                                                                                                    |    | Page |   
|             |  |                                                                                                    |    |      |   
|PART III    
|Item 10.     |  | Directors and Executive Officers of the
    Registrant                                             |    |      | 4  | 
|Item 11.     |  | Executive Compensation                                                                             |    |      | 6  | 
|Item 12.     |  | Security Ownership of Certain Beneficial
    Owners and Management and Related Shareholder Matters |    |      | 11 | 
|Item 13.     |  | Certain Relationships and Related
    Transactions                                                 |    |      | 13 | 
|Item 14.     |  | Principal Accountant Fees and Services                                                             |    |      | 13 | 
|PART IV     
|Item 15.     |  | Exhibits and Financial Statement
    Schedules                                                     |    |      | 14 | 
|Signatures   |  |                                                                                                    | 15 |     
|EXHIBIT 31.1
|EXHIBIT 31.2







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PART III







|         |                                                   
|-------- | --------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant



|                      |  |     |    |  |                      |                                                                           |       |  |      | 
|--------------------- |  | --- | -- |  | -------------------- | ------------------------------------------------------------------------- | ----- |  | ---- | 
|                      |  |     |    |  |                      | Director                                                                  |      
|Name of Nominee       |  | Age |    |  | Principal Occupation |                                                                           | Since | 
|                      |  |     |    |  |                      |                                                                           |       | 
|Fred S.L. Chan        |  |     | 59 |  |                      | Chairman of the Board of Directors of the Company                         |       |  | 1986 | 
|Robert L. Blair       |  |     | 58 |  |                      | President and Chief Executive Officer of the Company                      |       |  | 1999 | 
|Gary L. Fischer(1)    |  |     | 55 |  |                      | Vice President and Chief Financial Officer of eRide, Inc.                 |       |  | 2004 | 
|Peter T. Mok(1)(2)(3) |  |     | 52 |  |                      | President and Chief Executive Officer of KLM Capital Management,
    Inc. |       |  | 1993 | 
|David S. Lee(1)(2)(3) |  |     | 68 |  |                      | Chairman of the Board for eOn Communications Corporation                  |       |  | 2000 | 
|Alfred J. Stein(1)    |  |     | 73 |  |                      | Director of Advanced Power Technology                                     |       |  | 2003 | 






|    |                                                                              
|--- | -----------------------------------------------------------------------------
|(1) | Member of the Audit Committee of the Board.                                  
|   
|(2) | Member of the Compensation Committee of the Board.                           
|   
|(3) | Member of the Corporate Governance and Nominating Committee of
    the Board.

Fred S.L. Chan


Robert L. Blair


Gary L. Fischer


4



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E-CMOS,


Peter T. Mok


David S. Lee


Alfred J. Stein start-up




Audit Committee and Audit Committee Financial Expert




5



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Section 16(a) Beneficial Ownership Reporting
Compliance






Code of Ethics


http://www.ESSTECH.com. 8-K.







|         |                       
|-------- | ----------------------
|Item 11. | Executive Compensation



Summary Compensation Table


|                            |                     |              |      |                     |            |           |              |              |  |  |            |         |  |              |     |     |     |  |         |         |        |  |   |        |    
|--------------------------- | ------------------- | ------------ | ---- | ------------------- | ---------- | --------- | ------------ | ------------ |  |  | ---------- | ------- |  | ------------ | --- | --- | --- |  | ------- | ------- | ------ |  | - | ------ | ---
|                            |                     |              |      |                     |            | Long-Term |              |              | 
|                            |                     |              |      | Annual Compensation |            |           | Compensation |              |  | 
|                            |                    
|                            |                     | Other Annual |      |                     | Securities |           |              | All Other    | 
|                            |                     | Salary       |      |                     | Bonus      |           |              | Compensation |  |  | Underlying |         |  | Compensation |    
|Name and Principal Position |                     | Year         |      |                     | ($)        |           |              | ($)          |  |  | (1)($)     |         |  | Options (#)  |     |     | ($) | 
|                            |                     |              |      |                     |            |           |              |              |  |  |            |         |  |              |     |     |     | 
|Fred S.L. Chan              |                     |              | 2005 |                     |            |           | 328,000      |              |  |  |           |         |  |              | 948 |     |     |  | 540,000 | (2)(3)  |        |  |  |       
|                            | Chairman of the     |              |      | 2004                |            |           |              | 328,000      |  |  |            | 102,500 |  |              |     | 272 |     |  |         | 400,000 | (2)(3) |  |   | 31,500 | (4)
|                            | Board of Directors  |              |      | 2003                |            |           |              | 328,000      |  |  |            | 672,000 |  |              |     | 64  |     |  |         |        |        |  |   |       |    
|Robert L. Blair             |                     |              | 2005 |                     |            |           | 328,000      |              |  |  |           |         |  |              | 350 |     |     |  | 346,666 | (2)(5)  |        |  |  |       
|                            | President and       |              |      | 2004                |            |           |              | 328,000      |  |  |            | 103,000 |  |              |     | 272 |     |  |         |        |        |  |   | 13,980 | (6)
|                            | CEO                 |              |      | 2003                |            |           |              | 328,000      |  |  |            | 150,000 |  |              |     | 64  |     |  |         | 400,000 |        |  |   |       |    
|James B. Boyd               |                     |              | 2005 |                     |            |           | 220,000      |              |  |  |           |         |  |              | 350 |     |     |  | 60,000  | (2)(7)  |        |  |  |       
|                            | CFO, Senior         |              |      | 2004                |            |           |              | 220,000      |  |  |            | 255,000 |  |              |     | 272 |     |  |         | 30,000  | (2)(7) |  |   |       |    
|                            | Vice President and  |              |      | 2003                |            |           |              | 198,333      |  |  |            | 110,000 |  |              |     | 34  |     |  |         | 40,000  |        |  |   |       |    
|                            | Assistant Secretary |              |      |                     |            |           |              |              |  |  |            |         |  |              |     |     |     |  |         |         |        |  |   |        |    






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes dollar value of annual premiums paid by the Company
    under the Companys group term life insurance policy and
    accidental death and dismemberment policy on behalf of the Named
    Executive Officers.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(2) | In order to increase the retention value of the Companys
    stock option programs, on November 23, 2004 the Board
    approved an exchange offer pursuant to which all employees and
    consultants with stock options granted under the 2002
    Non-Executive Stock Option Plan, 1997 Equity Incentive Plan and
    1995 Equity Incentive Plan could exchange them for new stock
    options to be granted in the future (the Exchange
    Offer). Under the terms of the Exchange Offer, which
    commenced on November 26, 2004, eligible employees and
    consultants who chose to participate tendered their stock
    options for cancellation (the Tendered Options) on
    or before December 27, 2004 and received one new option for
    each option

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | cancelled with an exercise price equal to the fair market value
    on June 29, 2005, based on the closing price of the common
    stock as reported by Nasdaq on that date (the Replacement
    Options). The Replacement Options generally have the same
    terms and are subject to the same conditions as the Tendered
    Options and will have a term of ten years beginning on the grant
    date unless other superseding circumstances apply, assuming
    continued employment.
|   
|(3) | Fred S. L. Chan received 540,000 Replacement Options in exchange
    for his 540,000 Tendered Options, of which 400,000 were granted
    in 2004.                                                                                                                                                                                                                                                                                                                                           
|   
|(4) | Represents the value of a watch awarded to Mr. Chan as a
    gift for 20 years of service to the Company at the
    20th anniversary celebration of the Company.                                                                                                                                                                                                                                                                                                                            
|   
|(5) | Robert L. Blair received 346,666 Replacement Options in exchange
    for his 346,666 Tendered Options.                                                                                                                                                                                                                                                                                                                                                                                      
|   
|(6) | Represents the value of a watch awarded to Mr. Blair as a
    gift for 10 years of service to the Company at the
    20th anniversary celebration of the Company.                                                                                                                                                                                                                                                                                                                           
|   
|(7) | James B. Boyd received 60,000 Replacement Options in exchange
    for his 60,000 Tendered Options, of which 30,000 were granted in
    2004.                                                                                                                                                                                                                                                                                                                                                

Stock Option Grants In Last Fiscal Year




|                |  |                      |         |        |                    |  |                      |             |                       |  |            |                        |                    |    |      |  |     |  |         |  |  |  |           | 
|--------------- |  | -------------------- | ------- | ------ | ------------------ |  | -------------------- | ----------- | --------------------- |  | ---------- | ---------------------- | ------------------ | -- | ---- |  | --- |  | ------- |  |  |  | --------- | 
|                |  | Individual Grants(1) |         |        |                    |  | Potential Realizable |            
|                |  |                      |         |        |                    |  | Value at Assumed     |            
|                |  | Number of            |         |        |                    |  |                      |             | Annual Rates of Stock | 
|                |  | Securities           |         |        | Percent of Total   |  |                      |             |                       |  |            | Price Appreciation for |                   
|                |  | Underlying           |         |        | Options Granted to |  |                      | Exercise of |                       |  |            |                        | Option Term ($)(2) |   
|                |  | Options              |         |        | Employees in       |  |                      | Base Price  |                       |  | Expiration |                        |                    |    |     
|Name            |  | Granted (#)          |         |        | Fiscal Year (%)(3) |  |                      | ($/Sh)(4)   |                       |  | Date       |                        |                    | 5% |      |  | 10% | 
|                |  |                      |         |        |                    |  |                      |             |                       |  |            |                        |                    |    |      |  |     | 
|Fred S.L. Chan  |  |                      | 21,030  | (5)(a) |                    |  | 0.4                  |             |                       |  | 4.532      |                        |                    |    | 2010 |  |     |  | 59,939  |  |  |  | 151,896   | 
|                |  |                      | 68,450  | (5)(b) |                    |  | 1.3                  |             |                       |  | 4.532      |                        |                    |    | 2010 |  |     |  | 195,093 |  |  |  | 494,403   | 
|                |  |                      | 118,970 | (5)(c) |                    |  | 2.3                  |             |                       |  | 4.12       |                        |                    |    | 2015 |  |     |  | 308,257 |  |  |  | 781,183   | 
|                |  |                      | 331,550 | (5)(d) |                    |  | 6.4                  |             |                       |  | 4.12       |                        |                    |    | 2015 |  |     |  | 849,061 |  |  |  | 2,177,030 | 
|Robert L. Blair |  |                      | 346,666 | (6)    |                    |  | 6.6                  |             |                       |  | 4.12       |                        |                    |    | 2015 |  |     |  | 898,228 |  |  |  | 2,276,285 | 
|James B. Boyd   |  |                      | 60,000  | (7)    |                    |  | 1.1                  |             |                       |  | 4.12       |                        |                    |    | 2015 |  |     |  | 155,463 |  |  |  | 393,973   | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | No stock appreciation rights were granted to the Named Executive
    Officers in the last fiscal year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(2) | The potential realizable value illustrates value that might be
    realized upon exercise of the options immediately prior to the
    expiration of their terms, assuming the specified compounded
    rates of appreciation of the market price per share for the date
    of grant to the end of the option term. Actual gains, if any, on
    stock option exercise are dependent upon a number of factors,
    including the future performance of the common stock and the
    timing of option exercises, as well as the optionees
    continued employment throughout the vesting period. There can be
    no assurance that the amounts reflected in this table will be
    achieved.
|   
|(3) | The Company granted stock options representing
    5,219,803 shares to employees in the last fiscal year, of
    which 3,589,503 shares, each with an exercise price of
    $4.12, were Replacement Options granted to employees
    participating in the Exchange Offer.                                                                                                                                                                                                                                                                                                                                                                                                                     
|   
|(4) | The exercise price may be paid in cash, in shares of common
    stock valued at fair market value on the exercise date or
    through a cashless exercise procedure involving a same-day sale
    of the purchased shares, to the extent permissible under
    applicable law.                                                                                                                                                                                                                                                                                                                                                                                                                

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|    |                                                                                                                                                                                                      
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(5) | In consideration of the total of 540,000 Tendered Options, from
    three different option grants, Mr. Chan received a total of
    540,000 Replacement Options with the following vesting schedules:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) 14,020 shares were fully vested on the date of
    grant and 1/12th of the remaining 7,010 shares vest
    monthly on the 3rd day of each month commencing
    June 3, 2006 through May 3, 2007.                                                                                                                                                                                                                                                                                                                                                                                               
|
| | (b) 7,455 shares were fully vested on the date of
    grant and 1/6th of 2,796 shares vest monthly on the
    10th day of each month commencing July 10, 2005
    through December 10, 2005; 1/12th of
    20,182 shares vest monthly on the 10th day of each
    month commencing January 10, 2006 through December 10,
    2006; 1/12th of 21,350 shares vest monthly on the
    10th day of each month commencing January 10, 2007
    through December 10, 2007; 1/2 of 16,667 shares vest
    monthly on the 10th day of each month commencing
    January 10, 2008 through February 10, 2008.
|
| | (c) 45,980 shares were fully vested on the date of
    grant and 1/12th of the remaining 72,990 shares vest
    monthly on the 3rd day of each month commencing
    June 3, 2006 through May 3, 2007.                                                                                                                                                                                                                                                                                                                                                                                              
|
| | (d) 125,878 shares were fully vested on the date of
    grant and 1/6th of 47,204 shares vest monthly on the
    10th day of each month commencing July 10, 2005
    through December 10, 2005; 1/12th of
    79,818 shares vest monthly on the 10th day of each
    month commencing January 10, 2006 through December 10,
    2006; 1/12th of 78,650 shares vest monthly on the
    10th day of each month commencing January 10, 2007
    through December 10, 2007.                                                                                                                            



|    |                                                                                                                                                                                                                                                                                                                                                           
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(6) | In consideration of the total of 346,666 Tendered Options, from
    three different option grants, Mr. Blair received a total
    of 346,666 Replacement Options, of which 273,333 were fully
    vested on the date of grant. The remaining 73,333 options vest
    ratably on the 3rd day of each month commencing
    July 3, 2005 through May 3, 2006.
|   
|(7) | In consideration of the total of 60,000 Tendered Options, from
    two different option grants, Mr. Boyd received a total of
    60,000 Replacement Options with the following vesting schedules:                                                                                                                                                         



| |                                                                                                                                                                                                                                                                                                                                                                                          
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 30,000 options: 1/12th of 5,000 shares vest monthly
    on the 3rd day of each month commencing July 3, 2005
    through June 3, 2006; 1/12th of 15,000 shares
    vest monthly on the 3rd day of each month commencing on
    July 3, 2006 through June 3, 2007; 1/12th of
    10,000 shares vest monthly on the 3rd day of each
    month commencing July 3, 2007 through June 3, 2008.
|
| | 30,000 options: 1/12th of 20,000 shares were fully
    vested on the date of grant; 1/12th of 20,000 shares
    vest monthly on the 3rd day of each month commencing
    July 3, 2005 through May 3, 2006; 1/12th of
    10,000 shares vest monthly on the 3rd day of each
    month commencing June 3, 2006 through May 3, 2007.                                                        

Aggregate Option Exercises In Last Fiscal Year and Fiscal
Year-End Option Values


in-the


|                |  |             |   |  |                |                        |                     |             |                      |                         |               |  |  |             |         |  |               |  |        |  |  |  |   | 
|--------------- |  | ----------- | - |  | -------------- | ---------------------- | ------------------- | ----------- | -------------------- | ----------------------- | ------------- |  |  | ----------- | ------- |  | ------------- |  | ------ |  |  |  | - | 
|                |  |             |   |  |                | Number of Securities   |                     |             |                     
|                |  |             |   |  |                | Underlying Unexercised |                     |             | Value of Unexercised |                        
|                |  | Shares      |   |  |                |                        | Options at          |             |                      | In-the-Money Options at |              
|                |  | Acquired on |   |  |                |                        | Fiscal Year-End (#) |             |                      | Fiscal Year-End ($)(2)  |              
|                |  | Exercise    |   |  | Value Realized |                        |                     |             |                      |                         |               | 
|Name            |  | (#)         |   |  | ($)(1)         |                        |                     | Exercisable |                      |                         | Unexercisable |  |  | Exercisable |         |  | Unexercisable | 
|                |  |             |   |  |                |                        |                     |             |                      |                         |               |  |  |             |         |  |               | 
|Fred S.L. Chan  |  |             |  |  |                |                        |                    |             |                      |                         | 825,000       |  |  |             | 305,000 |  |               |  |       |  |  |  |  | 
|Robert L. Blair |  |             |  |  |                |                        |                    |             |                      |                         | 804,389       |  |  |             | 191,666 |  |               |  | 15,881 |  |  |  |  | 
|James B. Boyd   |  |             |  |  |                |                        |                    |             |                      |                         | 200,000       |  |  |             | 70,000  |  |               |  |       |  |  |  |  | 

8



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|    |                                                                                                                                                                                                                                                                                                                                                                                     
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Value Realized represents the fair market value of
    the shares of common stock underlying the option on the date of
    exercise less the aggregate exercise price of the option.                                                                                                                                                                                              
|   
|(2) | These values, unlike the amounts set forth in the column
    entitled Value Realized, have not been, and may
    never be, realized and are based on the positive spread between
    the respective exercise prices of outstanding options and the
    closing price of the Companys common stock on
    December 30, 2005, the last day of trading for the fiscal
    year 2005.

Employment Contracts, Termination of Employment and
Change-In-Control Arrangements








Compensation of Directors




|                                         |                        |   |       |       | 
|---------------------------------------- | ---------------------- | - | ----- | ----- | 
|Quarterly Retainer                       |                        | $ | 5,000 |      
|                                         | Scheduled Meeting Fee* |   | $     | 2,000 | 
|                                         | Special Meeting Fee**  |   | $     | 500   | 
|Additional Quarterly Committee Retainer: |                        |   |       |      
|                                         | Audit Committee Chair  |   | $     | 4,000 | 
|                                         | Audit Committee Member |   | $     | 2,000 | 
|                                         | Other Committee Chair  |   | $     | 1,000 | 
|                                         | Other Committee Member |   | $     | 500   | 






| |   |                                                                
| | - | ---------------------------------------------------------------
| | * | $1,000 for each scheduled meeting attended via conference call.



|   |                                                                                                           
|-- | ----------------------------------------------------------------------------------------------------------
|** | For each special meeting, attended in person or via conference
    call, where board actions are required.



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DIRECTOR COMPENSATION


|                |  |                  |        |  |               |  |        |    
|--------------- |  | ---------------- | ------ |  | ------------- |  | ------ | ---
|                |  | Fees Earned or   |        |  | Option Grants | 
|Name            |  | Paid in Cash ($) |        |  | (#)(1)        | 
|                |  |                  |        |  |               | 
|Gary L. Fischer |  |                  | 45,500 |  |               |  | 20,000 | (2)
|David S. Lee    |  |                  | 43,000 |  |               |  | 15,000 | (3)
|Peter T. Mok    |  |                  | 40,500 |  |               |  | 15,000 | (3)
|Alfred J. Stein |  |                  | 37,000 |  |               |  | 15,000 | (3)






|    |                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | These options grants were awarded at $4.00 per share, the
    fair market value of the Companys common stock on
    June 27, 2005, the date of the 2005 annual shareholder
    meeting.                                 
|   
|(2) | 10,000 options are awarded as a Subsequent Grant as defined
    above, 5,000 options are awarded for serving on the Audit
    Committee and 5,000 options are awarded for serving as Chairman
    of the Audit Committee.
|   
|(3) | 10,000 options are awarded for a Subsequent Grant as defined
    above and 5,000 options are awarded for serving on the Audit
    Committee.                                                                             

10



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|         |                                                                                                   
|-------- | --------------------------------------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management and Related Shareholder Matters



|                                                                  |                                  |                     |           |      |         |  |                |                 |  |  |           |  | 
|----------------------------------------------------------------- | -------------------------------- | ------------------- | --------- | ---- | ------- |  | -------------- | --------------- |  |  | --------- |  | 
|                                                                  |                                  | Shares Beneficially |           |      |        
|                                                                  |                                  | Owned(1)            |           |      |        
|                                                                  |                                  |                     |           |      | Options | 
|                                                                  |                                  |                     |           | % of |         |  | Exercisable on |                
|                                                                  |                                  | Number of           |           |      | Common  |  |                | or Before       | 
|Name and Address                                                  |                                  | Shares              |           |      | Stock   |  |                | May 29, 2006(1) | 
|                                                                  |                                  |                     |           |      |         |  |                |                 | 
|Fred S.L. Chan, Chairman(2)                                       |                                  |                     | 4,403,677 |      |         |  | 11.3           | %               |  |  | 875,000   | 
|Annie M.H. Chan(2)                                                |                                  |                     | 4,403,677 |      |         |  | 11.3           | %               |  |  |          | 
|FMR Corp.(3)                                                      |                                  |                     | 3,956,700 |      |         |  | 10.1           | %               |  |  |          | 
|                                                                  | 82 Devonshire St.                |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | Boston, MA 02109                 |                     |           |      |         |  |                |                 |  |  |           |  | 
|Royce & Associates LLC(4)                                         |                                  |                     | 2,283,900 |      |         |  | 5.8            | %               |  |  |          | 
|                                                                  | 1414 Avenue of the Americas      |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | New York, NY 10019               |                     |           |      |         |  |                |                 |  |  |           |  | 
|Brandes Investment Partners, L.P.(5)                              |                                  |                     | 2,375,510 |      |         |  | 6.1            | %               |  |  |          | 
|                                                                  | 11988 El Camino Real, Suite 500  |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | San Diego, CA 92130              |                     |           |      |         |  |                |                 |  |  |           |  | 
|Robert L. Blair, Director, President and CEO                      |                                  |                     | 902,148   |      |         |  | 2.3            | %               |  |  | 879,388   | 
|James B. Boyd, CFO, Senior Vice President and Assistant Secretary |                                  |                     | 217,507   |      |         |  | *              |                 |  |  | 214,583   | 
|Gary L. Fischer, Director                                         |                                  |                     | 40,210    |      |         |  | *              |                 |  |  | 40,210    | 
|                                                                  | c/o eRide, Inc.                  |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | 3450 California St.              |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | San Francisco, CA 94118          |                     |           |      |         |  |                |                 |  |  |           |  | 
|David S. Lee, Director                                            |                                  |                     | 83,542    |      |         |  | *              |                 |  |  | 83,542    | 
|                                                                  | c/o Spark Technology Corporation |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | 185 Martinvale Lane              |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | San Jose, CA 95119               |                     |           |      |         |  |                |                 |  |  |           |  | 
|Peter T. Mok, Director                                            |                                  |                     | 52,292    |      |         |  | *              |                 |  |  | 52,292    | 
|                                                                  | c/o KLM Capital Management, Inc. |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | 10 Almaden Blvd., Suite 988      |                     |           |      |         |  |                |                 |  |  |           |  | 
|                                                                  | San Jose, CA 95113               |                     |           |      |         |  |                |                 |  |  |           |  | 
|Alfred J. Stein, Director                                         |                                  |                     | 51,875    |      |         |  | *              |                 |  |  | 51,875    | 
|All executive officers and directors as a group(6)                |                                  |                     | 5,751,251 |      |         |  | 13.6           | %               |  |  | 2,196,890 | 






| |   |                                                                                   
| | - | ----------------------------------------------------------------------------------
| | * | Less than one percent of the outstanding shares of the
    Companys common stock.



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Unless otherwise indicated below, the persons and entities named
    in the table have sole voting and sole investment power with
    respect to all shares shown as beneficially owned, subject to
    community property laws where applicable and except as indicated
    in the other footnotes to this table. As of March 31, 2006,
    39,094,452 shares of the Companys common stock were
    issued and outstanding. Shares of common stock subject to
    options that are currently exercisable or exercisable within
    60 days after March 31, 2006 are deemed to be
    outstanding and to be beneficially owned by the person holding
    such options for the purpose of computing the percentage
    ownership of such person but are not treated as outstanding for
    the purpose of computing the percentage ownership of any other
    person.

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(2) | Fred S. L. Chan and Annie M. H. Chan are husband and wife (the
    Chans). This amount includes 3,248,677 shares
    held by the Annie M.H. Chan Living Trust for the benefit of
    Annie M. H. Chan. This amount also includes 280,000 shares
    held by a trust for the benefit of Michael Y.J. Chan, a minor
    child who resides with the Chans. This amount does not include
    shares held in separate trusts for the benefit of Edward Y.C.
    Chan and David Y.W. Chan who are adult children of the Chans and
    do not reside with the Chans.                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(3) | The Schedule 13G Amendment 2 filed by FMR Corp. (a parent
    holding company) and Edward C. Johnson 3d on February 14,
    2006 indicates that on December 31, 2005 Fidelity
    Management & Research Company (Fidelity), a
    wholly-owned subsidiary of FMR Corp. and an investment adviser
    registered under Section 203 of the Investment Advisers Act
    of 1940, is the beneficial owner of 3,956,700 shares of the
    Companys common stock held by the Fidelity Low Priced
    Stock Fund (the Fund). Edward C. Johnson 3d and FMR
    Corp. through their control of Fidelity and its funds each has
    sole power to dispose of the 3,956,700 shares owned by the
    Fund. Neither FMR Corp. nor Edward C. Johnson 3d has the sole
    power to vote the shares owned directly by the Fidelity funds.
    Fidelity carries out the voting of the shares under written
    guidelines established by the Fidelity funds Board of
    Trustees.
|   
|(4) | The Schedule 13G Amendment 1 filed by Royce &
    Associates LLC (Royce) on January 18, 2006
    indicates that Royce is an Investment Adviser registered under
    Section 203 of the Investment Advisers Act of 1940 and is
    the beneficial owner of 2,283,900 shares of the
    Companys common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(5) | The Schedule 13G statement filed on February 14, 2006
    by Brandes Investment Partners, L.P., an Investment Adviser
    registered under the Investment Advisers Act of 1940, its
    control persons (Brandes Investment Partners, Inc., Charles H.
    Brandes, Glenn R. Carlson and Jeffrey A. Busby) and its holding
    company (Brandes Worldwide Holdings, L.P.) (collectively
    referred to as the Group) indicate that the Group is
    deemed to beneficially hold shared dispositive power of
    2,375,510 shares and shared voting power of
    2,128,060 shares of the Companys common stock. The
    control persons disclaim any direct ownership of the shares
    except for an amount that is substantially less than one percent
    of the number of shares reported.                                                                                                                                                                      
|   
|(6) | Includes 280,000 shares held by an entity affiliated with a
    certain director as described in Note (2).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             



Equity Compensation Plan Information(1)


|                                                           |       |                         |           |           |                         |                      |                         |                             |  |  |           |           | 
|---------------------------------------------------------- | ----- | ----------------------- | --------- | --------- | ----------------------- | -------------------- | ----------------------- | --------------------------- |  |  | --------- | --------- | 
|                                                           |       |                         |           |           |                         | Number of Securities |                        
|                                                           |       | Number of Securities to |           |           |                         |                      | Remaining Available for |                            
|                                                           |       | be Issued Upon          |           |           | Weighted-Average        |                      |                         | Future Issuance Under       | 
|                                                           |       | Exercise of Outstanding |           |           | Exercise Price of       |                      |                         | Equity Compensation Plans   | 
|                                                           |       | Options, Warrants and   |           |           | Outstanding Options,    |                      |                         | (Excluding Securities       | 
|Plan Category                                              |       | Rights (a)(3)           |           |           | Warrants and Rights (b) |                      |                         | Reflected in Column (a))(c) | 
|                                                           |       |                         |           |           |                         |                      |                         |                             | 
|Equity compensation plans approved by security holders     |       |                         | 7,934,703 |           |                         | $                    | 5.68                    |                             |  |  | 3,322,368 | (2)      
|Equity compensation plans not approved by security holders |       |                         | 1,818,619 |           |                         | $                    | 4.75                    |                             |  |  | 167,551   |          
|                                                           |       |                         |           |           |                         |                      |                         |                             | 
|                                                           | Total |                         |           | 9,753,322 |                         |                      | $                       | 5.51                        |  |  |           | 3,489,919 | 
|                                                           |       |                         |           |           |                         |                      |                         |                             | 






|    |                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes only options outstanding under ESS stock option
    plans, as no stock warrants or rights were outstanding as of
    December 31, 2005.
|   
|(2) | Includes 292,010 shares of common stock reserved for future
    issuance under the ESS Technology, Inc. 1995 Employee Stock
    Purchase Plan.   
|   
|(3) | Includes outstanding options to purchase 26,146 shares
    of ESS common stock assumed through the acquisition of Platform
    Technologies, Inc.

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##### Table of Contents










|         |                                               
|-------- | ----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions












|         |                                       
|-------- | --------------------------------------
|Item 14. | Principal Accountant Fees and Services

Fees Paid to PricewaterhouseCoopers LLP




|               |       |                            |                |           |             |         |         |           |         |         | 
|-------------- | ----- | -------------------------- | -------------- | --------- | ----------- | ------- | ------- | --------- | ------- | ------- | 
|               |       | Fiscal Year                |                |           | Fiscal Year |        
|               |       | 2005                       |                |           | 2004        |        
|               |       |                            |                |           |             |        
|Audit Fees     |       | $                          | 1,027,500      |           |             | $       | 933,200 |          
|Tax Fees:      |       |                            |                |           |             |         |         |          
|               |       | Tax compliance/preparation |                |           | 302,945     |         |         |           | 398,725 |        
|               |       | Other tax services         |                |           | 264,090     |         |         |           | 84,950  |        
|               |       |                            |                |           |             |        
|               |       |                            | Total Tax Fees |           |             | 567,035 |         |           |         | 483,675 | 
|All Other Fees |       |                            | 2,320          |           |             |         | 2,220   |          
|               |       |                            |                |           |             |        
|               | Total |                            | $              | 1,596,855 |             |         | $       | 1,419,095 |        
|               |       |                            |                |           |             |        



| |           
| | ----------
| | Audit Fees

10-Q


13



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##### Table of Contents





| |         
| | --------
| | Tax Fees





| |               
| | --------------
| | All Other Fees








PART IV







|         |                                           
|-------- | ------------------------------------------
|Item 15. | Exhibits and Financial Statement Schedules

Exhibits


10-K.


14



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##### Table of Contents






SIGNATURES


10-K/




| |                     
| | --------------------
| | ESS TECHNOLOGY, INC.
| | (Registrant)        



| |     |                    
| | --- | -------------------
| | By: | /s/ ROBERT L. BLAIR

| | 
| | 
| | 



| |                                      
| | -------------------------------------
| | Robert L. Blair                      
| | President and Chief Executive Officer



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INDEX TO EXHIBITS


|        |    |               |  |                                                                                                        
|------- | -- | ------------- |  | -------------------------------------------------------------------------------------------------------
|Exhibit |    |              
|Number  |    | Exhibit Title
|        |    |              
|        | 31 | .1            |  | Certification of Chief Executive Officer Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.
|       
|        | 31 | .2            |  | Certification of Chief Financial Officer Pursuant to
    Section 302 of the Sarbanes-Oxley Act of 2002.

16