----

----

| x | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE ACT OF 1934 |
|---|----------------------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES      EXCHANGE ACT OF 1934 |
|---|--------------------------------------------------------------------------------------------------------------|

| California                                          | 77-0254621               |
|-----------------------------------------------------|--------------------------|
| (State      or Other Jurisdiction of                | (I.R.S.      Employer    |
| Incorporation      or Organization)                 | Identification      No.) |
|                                                |                     |
| 3545      North First Street                        |                     |
| San      Jose, California 95134                     | 95134                    |
|  (Address      of Principal Executive Offices) | (Zip      Code)          |

|   | Title      of Each Class             | Name      of Exchange on Which Registered |   |
|--------|--------------------------------------|-------------------------------------------|--------|
|   | Common      Stock                    | The      NASDAQ Stock Market LLC          |   |
|   |                                 |                                      |   |
|   | Preferred      Share Purchase Rights | The      NASDAQ Stock Market LLC          |   |

----

----

----

|   |   |   |                                                                                                                        |
|--------|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|
|   | 1.     |   | Financial      Statements                                                                                                   |
|   |   |   |
|   |   |   | Independent      Auditors’ Report to the Directors of Pericom Technology    Inc.                                      |
|   |   |   |
|   |   |   | Consolidated      Balance Sheets as of June 30, 2008 and June 30, 2007                                                      |
|   |   |   |
|   |   |   | Consolidated      Statements of Operations for each of the three fiscal years in the period      ended June 30, 2008        |
|   |   |   |
|   |   |   | Consolidated      Statements of Changes in Equity for each of the three fiscal years in the      period ended June 30, 2008 |
|   |   |   |
|   |   |   | Consolidated      Statement of Cash Flows for each of the three fiscal years in the period      ended June 30, 2008         |
|   |   |   |
|   |   |   | Notes      to the Financial Statements                                                                                      |

----

|                                              | Page   |
|---------------------------------------------------|--------|
|                                              |   |
| Independent      Auditor’s Report           | 1      |
|                                              |   |
| Consolidated      Balance Sheets                  | 2      |
|                                              |   |
| Consolidated      Statements of Operations        | 3      |
|                                              |   |
| Consolidated      Statements of Changes in Equity | 4      |
|                                              |   |
| Consolidated      Statements of Cash Flows        | 5      |
|                                              |   |
| Notes      to Consolidated Financial Statements   | 6      |

----

|   | PCP      CPA Limited                    |
|--------|-----------------------------------------|
|   | Certified      Public Accountants       |
|   | Hong      Kong,                         |
|   |                                    |
|   | Chua      Suk Lin, Ivy                  |
|   | Practising      Certificate No.: P02044 |
|   |                                    |
|   | May      20, 2009                       |

----

|                                                             |   |   |   |   | (Unaudited) |   |
|------------------------------------------------------------------|--------|--------|--------|--------|-------------|--------|
|                                                             |   | Note   |   |   | 2008        |   |   | 2007 |   |
|                                                             |   |   |   |   | US$         |   |   | US$ |   |
| ASSETS                                                           |   |   |   |   |        |   |   |   |   |
|                                                             |   |   |   |   |        |   |   |   |   |
| Non-current      assets                                          |   |   |   |   |        |   |   |   |   |
| Property,      plant and equipment                               |   |   | 5      |   |        |   | 1,750,779 |   |   |   | 1,820,944 |   |
| Land      use rights                                             |   |   | 6      |   |        |   | 405,761 |   |   |   | 383,234 |   |
| Investment      in an associate                                  |   |   | 7      |   |        |   | - |   |   |   | 73,825 |   |
|                                                             |   |   |   |   |        |   | 2,156,540 |   |   |   | 2,278,003 |   |
| Current      assets                                              |   |   |   |   |        |   |   |   |   |   |   |   |
| Inventories                                                      |   |   | 8      |   |        |   | 1,809,475 |   |   |   | 1,628,342 |   |
| Other      financial assets at fair value through profit or loss |   |   | 9      |   |        |   | 4,692,941 |   |   |   | 3,042,979 |   |
| Trade      receivables                                           |   |   | 10     |   |        |   | 1,722,438 |   |   |   | 1,681,348 |   |
| Other      receivables and prepayments                           |   |   | 10     |   |        |   | 347,593 |   |   |   | 387,137 |   |
| Tax      recoverable                                             |   |   |   |   |        |   | 13,374 |   |   |   | - |   |
| Amount      due from a related company                           |   |   | 22     |   |        |   | 97,932 |   |   |   | 28,281 |   |
| Cash      and cash equivalents                                   |   |   | 11     |   |        |   | 8,757,438 |   |   |   | 8,389,959 |   |
|                                                             |   |   |   |   |        |   | 17,441,191 |   |   |   | 15,158,046 |   |
|                                                             |   |   |   |   |        |   |   |   |   |   |   |   |
| Total      assets                                                |   |   |   |   |        |   | 19,597,731 |   |   |   | 17,436,049 |   |
|                                                             |   |   |   |   |        |   |   |   |   |   |   |   |
| EQUITY                                                           |   |   |   |   |        |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |        |   |   |   |   |   |   |   |
| Capital      and reserves                                        |   |   |   |   |        |   |   |   |   |   |   |   |
| Share      capital                                               |   |   | 12     |   |        |   | 18,951,736 |   |   |   | 18,922,658 |   |
| Other      reserves                                              |   |   |   |   |        |   | 791,458 |   |   |   | 393,516 |   |
| Accumulated      losses                                          |   |   |   |   |        |   | (1,712,506 | ) |   |   | (3,012,796 | ) |
|                                                             |   |   |   |   |        |   |   |   |   |   |   |   |
| Total      equity                                                |   |   |   |   |        |   | 18,030,688 |   |   |   | 16,303,378 |   |
|                                                             |   |   |   |   |        |   |   |   |   |   |   |   |
| LIABILITIES                                                      |   |   |   |   |        |   |   |   |   |   |   |   |
|                                                             |   |   |   |   |        |   |   |   |   |   |   |   |
| Current      liabilities                                         |   |   |   |   |        |   |   |   |   |   |   |   |
| Trade      payables                                              |   |   | 13     |   |        |   | 698,442 |   |   |   | 572,048 |   |
| Accruals      and other payables                                 |   |   |   |   |        |   | 741,908 |   |   |   | 407,894 |   |
| Amount      due to a shareholder                                 |   |   | 22     |   |        |   | 122,534 |   |   |   | 117,706 |   |
| Amount      due to a related company                             |   |   | 22     |   |        |   | 4,159 |   |   |   | - |   |
| Tax      payables                                                |   |   |   |   |        |   | - |   |   |   | 35,023 |   |
|                                                             |   |   |   |   |        |   | 1,567,043 |   |   |   | 1,132,671 |   |
|                                                             |   |   |   |   |        |   |   |   |   |   |   |   |
| Total      liabilities                                           |   |   |   |   |        |   | 1,567,043 |   |   |   | 1,132,671 |   |
|                                                             |   |   |   |   |        |   |   |   |   |   |   |   |
| Total      equity and liabilities                                |   |   |   |   |        |   | 19,597,731 |   |   |   | 17,436,049 |   |

----

|                                 |   |   |   |   | (Unaudited) |   |       |   | (1     | )      |
|--------------------------------------|--------|--------|--------|--------|-------------|--------|------------|--------|--------|--------|
|                                 |   | Note   |   |   | 2008        |   |       | 2007   |   |   | 2006 |   |
|                                 |   |   |   |   | US$         |   |       | US$    |   |   | US$ |   |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |
| Revenue                              |   |   | 16     |   |        |   | 11,674,828 |   |   |   | 11,332,994 |   |   |   | 12,512,670 |   |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Cost      of sales                   |   |   |   |   |        |   | (5,839,113 | )      |   |   | (5,143,078 | ) |   |   | (5,812,561 | ) |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Gross      profit                    |   |   |   |   |        |   | 5,835,715  |   |   |   | 6,189,916 |   |   |   | 6,700,109 |   |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Other      income                    |   |   | 17     |   |        |   | 251,298    |   |   |   | 426,684 |   |   |   | 504,773 |   |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Share      of losses of an associate |   |   | 7      |   |        |   | (76,525    | )      |   |   | (139,095 | ) |   |   | (19,730 | ) |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Distribution      costs              |   |   |   |   |        |   | (1,335,374 | )      |   |   | (1,121,844 | ) |   |   | (1,218,638 | ) |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Administrative      expenses         |   |   |   |   |        |   | (3,394,200 | )      |   |   | (3,768,464 | ) |   |   | (3,368,237 | ) |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Operating      profit                |   |   |   |   |        |   | 1,280,914  |   |   |   | 1,587,197 |   |   |   | 2,598,277 |   |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Finance      income                  |   |   | 18     |   |        |   | 191,318    |   |   |   | 209,877 |   |   |   | - |   |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Profit      before income tax        |   |   |   |   |        |   | 1,472,232  |   |   |   | 1,797,074 |   |   |   | 2,598,277 |   |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Income      tax expense              |   |   | 19     |   |        |   | (171,942   | )      |   |   | (96,671 | ) |   |   | - |   |
|                                 |   |   |   |   |        |   |       |   |   |   |   |   |   |   |   |   |
| Profit      for the year             |   |   |   |   |        |   | 1,300,290  |   |   |   | 1,700,403 |   |   |   | 2,598,277 |   |

----

|                                                        |   | Sharecapital |       |   | Share      ofreserves      ofassociate |   |   | Share-basedpaymentreserve |   |   | Accumulatedlosses |   |   | Exchangereserve |       |   | Total  |   |
|-------------------------------------------------------------|--------|--------------|------------|--------|----------------------------------------|--------|--------|---------------------------|--------|--------|-------------------|--------|--------|-----------------|------------|--------|--------|--------|
|                                                        |   | US$          |       |   | US$                                    |   |   | US$                       |   |   | US$               |   |   | US$             |       |   | US$    |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |
| Balance      at 1 July 2005                                 |   |         | 18,868,096 |   |                                   |   | -      |                      |   |   | -                 |   |   |            | (7,178,051 | )      |   |   | - |   |   |   | 11,690,045 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Shares      issued on exercise of share options             |   |         | 14,938     |   |                                   |   | -      |                      |   |   | -                 |   |   |            | -          |   |   |   | - |   |   |   | 14,938 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Share-based      payments                                   |   |         | -          |   |                                   |   | -      |                      |   |   | 24,558            |   |   |            | -          |   |   |   | - |   |   |   | 24,558 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Profit      for the year                                    |   |         | -          |   |                                   |   | -      |                      |   |   | -                 |   |   |            | 2,598,277  |   |   |   | - |   |   |   | 2,598,277 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation differences               |   |         | -          |   |                                   |   | -      |                      |   |   | -                 |   |   |            | -          |   |   |   | 12,996 |   |   |   | 12,996 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Balance      at 1 July 2006, as previously reported         |   |         | 18,883,034 |   |                                   |   | -      |                      |   |   | 24,558            |   |   |            | (4,579,774 | )      |   |   | 12,996 |   |   |   | 14,340,814 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Prior      year adjustments                                 |   |         | -          |   |                                   |   | -      |                      |   |   | -                 |   |   |            | (133,425   | )      |   |   | - |   |   |   | (133,425 | ) |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Balance      at 1 July 2006, as restated                    |   |         | 18,883,034 |   |                                   |   | -      |                      |   |   | 24,558            |   |   |            | (4,713,199 | )      |   |   | 12,996 |   |   |   | 14,207,389 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Shares      issued on exercise of share options             |   |         | 36,794     |   |                                   |   | -      |                      |   |   | -                 |   |   |            | -          |   |   |   | - |   |   |   | 36,794 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Share      of reserves of associate                         |   |         | -          |   |                                   |   | 3,932  |                      |   |   | -                 |   |   |            | -          |   |   |   | - |   |   |   | 3,932 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Share-based      payments                                   |   |         | -          |   |                                   |   | -      |                      |   |   | 119,885           |   |   |            | -          |   |   |   | - |   |   |   | 119,885 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Transfer      to share capital on exercise of share options |   |         | 2,830      |   |                                   |   | -      |                      |   |   | (2,830            | )      |   |            | -          |   |   |   | - |   |   |   | - |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Profit      for the year, as restated                       |   |         | -          |   |                                   |   | -      |                      |   |   | -                 |   |   |            | 1,700,403  |   |   |   | - |   |   |   | 1,700,403 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation differences               |   |         | -          |   |                                   |   | -      |                      |   |   | -                 |   |   |            | -          |   |   |   | 234,975 |   |   |   | 234,975 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Balance      at 30 June 2007, as restated                   |   |         | 18,922,658 |   |                                   |   | 3,932  |                      |   |   | 141,613           |   |   |            | (3,012,796 | )      |   |   | 247,971 |   |   |   | 16,303,378 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Balance      at 1 July 2007                                 |   |         | 18,922,658 |   |                                   |   | 3,932  |                      |   |   | 141,613           |   |   |            | (3,012,796 | )      |   |   | 247,971 |   |   |   | 16,303,378 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Shares      issued on exercise of share options             |   |         | 15,095     |   |                                   |   | -      |                      |   |   | -                 |   |   |            | -          |   |   |   | - |   |   |   | 15,095 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Share      of reserves of associate                         |   |         | -          |   |                                   |   | 2,700  |                      |   |   | -                 |   |   |            | -          |   |   |   | - |   |   |   | 2,700 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Share-based      payments                                   |   |         | -          |   |                                   |   | -      |                      |   |   | 43,261            |   |   |            | -          |   |   |   | - |   |   |   | 43,261 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Transfer      to share capital on exercise of share options |   |         | 13,983     |   |                                   |   | -      |                      |   |   | (13,983           | )      |   |            | -          |   |   |   | - |   |   |   | - |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Profit      for the year                                    |   |         | -          |   |                                   |   | -      |                      |   |   | -                 |   |   |            | 1,300,290  |   |   |   | - |   |   |   | 1,300,290 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Foreign      currency translation differences               |   |         | -          |   |                                   |   | -      |                      |   |   | -                 |   |   |            | -          |   |   |   | 365,964 |   |   |   | 365,964 |   |
|                                                        |   |         |       |   |                                   |   |   |                      |   |   |              |   |   |            |       |   |   |   |   |   |   |   |   |   |
| Balance      at 30 June 2008                                |   |         | 18,951,736 |   |                                   |   | 6,632  |                      |   |   | 170,891           |   |   |            | (1,712,506 | )      |   |   | 613,935 |   |   |   | 18,030,688 |   |

----

|                                                                                     |   | Note   |   |   | 2008   |   |       | 2007   |   |   | 2006       |   |
|------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|------------|--------|
|                                                                                     |   |   |   |   | US$    |   |       | US$    |   |   | US$        |   |
| Cash      flows from operating activities                                                |   |   |   |   |   |   |       |   |   |   |       |   |
| Net      cash generated from operations                                                  |   |   | 20     |   |   |   | 2,258,370  |   |   |   | 4,363,700  |   |   |   | 927,646 |   |
| PRC      enterprise income tax paid                                                      |   |   |   |   |   |   | (220,339   | )      |   |   | (61,648    | )      |   |   | - |   |
|                                                                                     |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      cash generated from operating activities                                        |   |   |   |   |   |   | 2,038,031  |   |   |   | 4,302,052  |   |   |   | 927,646 |   |
|                                                                                     |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      flows from investing activities                                                |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Purchase      of property, plant and equipment                                           |   |   |   |   |   |   | (470,456   | )      |   |   | (1,104,589 | )      |   |   | (376,446 | ) |
| Purchase      of financial assets at fair value through profit or loss                   |   |   |   |   |   |   | (2,550,390 | )      |   |   | (1,001,845 | )      |   |   | - |   |
| Proceeds      on disposals of financial assets at fair value through profit or      loss |   |   |   |   |   |   | 1,008,362  |   |   |   | 2,234,395  |   |   |   | 1,565,259 |   |
| Repayment      to an associate                                                           |   |   |   |   |   |   | -          |   |   |   | -          |   |   |   | (228,718 | ) |
| Interest      received                                                                   |   |   |   |   |   |   | 191,318    |   |   |   | 209,877    |   |   |   | 187,202 |   |
|                                                                                     |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      cash (used in)/generated from investing activities                              |   |   |   |   |   |   | (1,821,166 | )      |   |   | 337,838    |   |   |   | 1,147,297 |   |
|                                                                                     |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      flows from financing activities                                                |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Proceeds      from shares issued on exercise of share options                            |   |   |   |   |   |   | 15,095     |   |   |   | 36,794     |   |   |   | 14,938 |   |
| Increase/(decrease)      in amount due to a shareholder                                  |   |   |   |   |   |   | 4,828      |   |   |   | (231,756   | )      |   |   | 293,600 |   |
|                                                                                     |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Net      cash generated from/(used in) financing activities                              |   |   |   |   |   |   | 19,923     |   |   |   | (194,962   | )      |   |   | 308,538 |   |
|                                                                                     |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Increase      in cash and cash equivalents                                               |   |   |   |   |   |   | 236,788    |   |   |   | 4,444,928  |   |   |   | 2,383,481 |   |
| Cash      and cash equivalents at 1 July                                                 |   |   |   |   |   |   | 8,389,959  |   |   |   | 3,975,816  |   |   |   | 1,579,339 |   |
| Effect      on changes in foreign exchange rate                                          |   |   |   |   |   |   | 130,691    |   |   |   | (30,785    | )      |   |   | 12,996 |   |
|                                                                                     |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      and cash equivalents at 30 June                                                |   |   |   |   |   |   | 8,757,438  |   |   |   | 8,389,959  |   |   |   | 3,975,816 |   |
|                                                                                     |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Analysis      of balances of cash and cash equivalents                                   |   |   |   |   |   |   |       |   |   |   |       |   |   |   |   |   |
| Cash      and bank balances                                                              |   |   | 11     |   |   |   | 8,757,438  |   |   |   | 8,389,959  |   |   |   | 3,975,816 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 1  | General      information |
|---------|--------------------------|

|   | These      consolidated financial statements are presented in United States dollars      (“US$”), unless otherwise stated.  These consolidated financial      statements have been approved for issue by the board of directors on 10      October 2008. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2  | Principal      accounting policies |
|---------|------------------------------------|

|   | The      principal accounting policies applied in the preparation of these      consolidated financial statements are set out below.  These      policies have been consistently applied to all the years presented, unless      otherwise stated. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.1  | Basis      of preparation |
|-----------|---------------------------|

| 2.2 | Consolidation |
|-----|---------------|

|   | The      consolidated financial statements include the financial statements of the      Company and all its subsidiaries made up to 30  June. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

| 2 | Principal accounting policies      (Continued) |
|---|------------------------------------------------|

| 2.2  | Consolidation      (Continued) |
|-----------|--------------------------------|

| 2.3  | Foreign      currency translation |
|-----------|-----------------------------------|

|  | (a)  | Functional      and presentation currency |
|--|-----------|-------------------------------------------|

|  | (b)  | Transactions      and balances |
|--|-----------|--------------------------------|

|  | (c)  | Group      companies |
|--|-----------|----------------------|

|  | (i) | assets      and liabilities for each balance sheet presented are translated at the      closing rate at the date of that balancesheet; |
|--|-----|----------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 2 | Principal      accounting policies (Continued) |
|---|------------------------------------------------|

| 2.3 | Foreign      currency translation (Continued) |
|-----|-----------------------------------------------|

|   | (ii) | income      and expenses for each income statement are translated at average exchange      rates (unless this average is not a reasonable approximation of the      cumulative effect of the rates prevailing on the transaction dates, in      which case income and expenses are translated at the dates of the      transactions); and |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | all      resulting exchange differences are recognised as a separate component of      equity. |
|--------|-------|------------------------------------------------------------------------------------------------|

| 2.4  | Property,      plant and equipment |
|-----------|------------------------------------|

| Buildings                                     | 30      years  |
|-----------------------------------------------|----------------|
| Leasehold      improvement                    | 10%      - 20% |
| Office      equipment, furniture and fixtures | 20%      - 33% |
| Motor      vehicles                           | 20%            |
| Tools      and mould                          | 2      years   |

|   | The      assets’ residual values and useful lives are reviewed, and adjusted if      appropriate, at each balance sheetdate. |
|--------|------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 2  | Principal      accounting policies (Continued) |
|---------|------------------------------------------------|

| 2.5  | Impairment      of non-financial assets |
|-----------|-----------------------------------------|

| 2.6  | Financial      assets |
|-----------|-----------------------|

| 2.7  | Inventories |
|-----------|-------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 2 | Principal      accounting policies (Continued) |
|---|------------------------------------------------|

| 2.8  | Trade      and other receivables |
|-----------|----------------------------------|

|   | Trade      and other receivables are recognised initially at fair value. A provision      for impairment of trade and other receivables is established when there is      objective evidence that the Group will not be able to collect all amounts      due according to the original terms of the      receivables.  Significant financial difficulties of the debtor,      probability that the debtor will enter bankruptcy of financial      reorganisation, and default or delinquency in payments are considered      indicators that the trade receivable is impaired.  The amount of      the provision is the difference between the asset’s carrying amount and      the present value of estimated future cash flows.  The carrying      amount of the assets is reduced through the use of an allowance account      and the amount of the loss is recognised in the income      statement.  When a trade receivable is uncollectible, it is      written off against the allowance account for trade      receivables.  Subsequent recoveries of amounts previously      written off are credited in the income  statement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.9 | Cash      and cash equivalents |
|-----|--------------------------------|

|   | Cash      and cash equivalents include cash in hand, deposits held at call with      banks and other short-term highly liquid investments with original      maturities of three months of less. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.10 | Share      capital |
|------|--------------------|

| 2.11  | Trade      and other payables |
|------------|-------------------------------|

| 2.12 | Current      and deferred income tax |
|------|--------------------------------------|

|   | The      current income tax charge is calculated on the basis of the tax laws      enacted or substantively enacted at the balance sheet date in the      countries where the Company and its subsidiaries and associates operate      and generate taxable income. Management periodically evaluates positions      taken in tax returns with respect to situations in which applicable tax      regulation is subject to interpretation and establishes provisions where      appropriate on the basis of amounts expected to be paid to the tax      authorities. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 2 | Principal      accounting policies (Continued) |
|---|------------------------------------------------|

| 2.12 | Current      and deferred income tax (Continued) |
|------|--------------------------------------------------|

| 2.13 | Employee      benefits |
|------|------------------------|

|  | (a)  | Employee      leave entitlements |
|--|-----------|----------------------------------|

|  | (b)  | Pension      obligations |
|--|-----------|--------------------------|

| 2.14  | Provisions |
|------------|------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 2 | Principal      accounting policies (Continued) |
|---|------------------------------------------------|

| 2.15 | Revenue      recognition |
|------|--------------------------|

|   | The      Group recognises revenue when the amount of revenue can be reliably      measured, it is probable that future economic benefits will flow to the      entity and specific criteria have been met for each of the Group’s      activities as described below.  The amount of revenue is not      considered to be reliably measurable until all contingencies relating to      the sale have been resolved. Revenue is shown net of value-added tax,      returns, rebates and discounts and after eliminating sales within the      Group. The Group bases its estimates on historical results, taking into      consideration the type of customer, the type of transaction and the      specifics of each arrangement. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) | Sale      of goods |
|--------|-----|--------------------|

|   | (b) | Interest      income |
|--------|-----|----------------------|

| 2.16 | Operating      leases |
|------|-----------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 3  | Financial      risk management |
|---------|--------------------------------|

| 3.1  | Financial      risk factors |
|-----------|-----------------------------|

|  | (a)  | Foreign      exchange risk |
|--|-----------|----------------------------|

|  | (b)  | Credit      risk |
|--|-----------|------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 3  | Financial      risk management (Continued) |
|---------|--------------------------------------------|

| 3.1  | Financial      risk factors (Continued) |
|-----------|-----------------------------------------|

|  | (c)  | Liquidity      risk |
|--|-----------|---------------------|

|  | (d)  | Cash      flow interest rate risk |
|--|-----------|-----------------------------------|

| 3.2 | Capital      risk management |
|-----|------------------------------|

|   | The      Group’s objectives when managing capital are to safeguard the Group’s      ability to continue as a going concern in order to provide returns for      shareholders and benefits for other stakeholders.  In order to      maintain an optimal capital structure to reduce the cost of capital, the      Company may adjust the amount of dividends paid to shareholders, return      capital to shareholders, issue new shares or sell assets to reduce      debt. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.3  | Fair      value estimation |
|-----------|----------------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 4  | Critical      accounting estimates and judgements |
|---------|---------------------------------------------------|

| (a)  | Useful      lives of property, plant andequipment |
|-----------|---------------------------------------------------|

| (b)  | Impairment      of trade and other receivables |
|-----------|------------------------------------------------|

| (c)  | Income      taxes |
|-----------|-------------------|

| (d)  | Employee      benefits – share-based payments |
|-----------|-----------------------------------------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 5 | Property,      plant and equipment |
|---|------------------------------------|

|                                                 |   | Buildings |     |   | Leaseholdimprovement |   |     | Officeequipment,furnitureand      fixtures |   |   | MotorVehicles |   |   | Tools      and mould |    |   | Total  |   |
|------------------------------------------------------|--------|-----------|----------|--------|----------------------|--------|----------|--------------------------------------------|--------|--------|---------------|--------|--------|---------------------------|---------|--------|--------|--------|
|                                                 |   | US$       |     |   | US$                  |   |     | US$                                        |   |   | US$           |   |   | US$                       |    |   | US$    |   |
|                                                 |   |      |     |   |                 |   |     |                                       |   |   |          |   |   |                      |    |   |   |   |
| Year      ended 30th June 2007                       |   |      |     |   |                 |   |     |                                       |   |   |          |   |   |                      |    |   |   |   |
| Opening      net book amount, as previously reported |   |      | 364,440  |   |                 |   | 531,064  |                                       |   |   | 362,449       |   |   |                      | 11,467  |   |   |   | - |   |   |   | 1,269,420 |   |
| Prior      year adjustments                          |   |      | 8,155    |   |                 |   | (141,580 | )                                          |   |   | -             |   |   |                      | -       |   |   |   | - |   |   |   | (133,425 | ) |
| Reclassification                                     |   |      | -        |   |                 |   | -        |                                       |   |   | -             |   |   |                      | -       |   |   |   | 210,222 |   |   |   | 210,222 |   |
|                                                 |   |      |     |   |                 |   |     |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| Opening      net book amount, as restated            |   |      | 372,595  |   |                 |   | 389,484  |                                       |   |   | 362,449       |   |   |                      | 11,467  |   |   |   | 210,222 |   |   |   | 1,346,217 |   |
| Exchange      differences                            |   |      | 12,691   |   |                 |   | 11,382   |                                       |   |   | 7,618         |   |   |                      | 350     |   |   |   | 5,053 |   |   |   | 37,094 |   |
| Additions                                            |   |      | -        |   |                 |   | 278,704  |                                       |   |   | 472,196       |   |   |                      | -       |   |   |   | 353,689 |   |   |   | 1,104,589 |   |
| Depreciation,      as restated                       |   |      | (20,846  | )      |                 |   | (37,606  | )                                          |   |   | (219,932      | )      |   |                      | (8,274  | )      |   |   | (380,298 | ) |   |   | (666,956 | ) |
|                                                 |   |      |     |   |                 |   |     |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| Closing      net book amount                         |   |      | 364,440  |   |                 |   | 641,964  |                                       |   |   | 622,331       |   |   |                      | 3,543   |   |   |   | 188,666 |   |   |   | 1,820,944 |   |
|                                                 |   |      |     |   |                 |   |     |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
|                                                 |   |      |     |   |                 |   |     |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| At      30th June 2007                               |   |      |     |   |                 |   |     |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| Cost                                                 |   |      | 529,314  |   |                 |   | 731,311  |                                       |   |   | 2,502,570     |   |   |                      | 42,473  |   |   |   | 880,758 |   |   |   | 4,686,426 |   |
| Accumulated      depreciation, as restated           |   |      | (164,874 | )      |                 |   | (89,347  | )                                          |   |   | (1,880,239    | )      |   |                      | (38,930 | )      |   |   | (692,092 | ) |   |   | (2,865,482 | ) |
|                                                 |   |      |     |   |                 |   |     |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| Net      book amount                                 |   |      | 364,440  |   |                 |   | 641,964  |                                       |   |   | 622,331       |   |   |                      | 3,543   |   |   |   | 188,666 |   |   |   | 1,820,944 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 5 | Property,      plant and equipment (Continued) |
|---|------------------------------------------------|

|                           |   | Buildings |     |   | Leaseholdimprovement |   |      | Officeequipment,furnitureand      fixtures |   |   | MotorVehicles |   |   | Tools      and mould |    |   | Total  |   |
|--------------------------------|--------|-----------|----------|--------|----------------------|--------|-----------|--------------------------------------------|--------|--------|---------------|--------|--------|---------------------------|---------|--------|--------|--------|
|                           |   | US$       |     |   | US$                  |   |      | US$                                        |   |   | US$           |   |   | US$                       |    |   | US$    |   |
|                           |   |      |     |   |                 |   |      |                                       |   |   |          |   |   |                      |    |   |   |   |
| Year      ended 30th June 2008 |   |      |     |   |                 |   |      |                                       |   |   |          |   |   |                      |    |   |   |   |
| Opening      net book amount   |   |      | 364,440  |   |                 |   | 641,964   |                                       |   |   | 622,331       |   |   |                      | 3,543   |   |   |   | 188,666 |   |   |   | 1,820,944 |   |
| Exchange      differences      |   |      | 32,485   |   |                 |   | 67,181    |                                       |   |   | 79,249        |   |   |                      | 150     |   |   |   | 11,469 |   |   |   | 190,534 |   |
| Additions                      |   |      | -        |   |                 |   | 32,814    |                                       |   |   | 174,765       |   |   |                      | -       |   |   |   | 262,877 |   |   |   | 470,456 |   |
| Disposals                      |   |      | -        |   |                 |   | (5,075    | )                                          |   |   | (799          | )      |   |                      | -       |   |   |   | (63,933 | ) |   |   | (69,807 | ) |
| Depreciation                   |   |      | (20,979  | )      |                 |   | (97,672   | )                                          |   |   | (289,138      | )      |   |                      | (3,693  | )      |   |   | (249,866 | ) |   |   | (661,348 | ) |
|                           |   |      |     |   |                 |   |      |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| Closing      net book amount   |   |      | 375,946  |   |                 |   | 639,212   |                                       |   |   | 586,408       |   |   |                      | -       |   |   |   | 149,213 |   |   |   | 1,750,779 |   |
|                           |   |      |     |   |                 |   |      |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| At      30th June 2008         |   |      |     |   |                 |   |      |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| Cost                           |   |      | 582,212  |   |                 |   | 1,174,331 |                                       |   |   | 2,315,666     |   |   |                      | 47,162  |   |   |   | 994,245 |   |   |   | 5,113,616 |   |
| Accumulated      depreciation  |   |      | (206,266 | )      |                 |   | (535,119  | )                                          |   |   | (1,729,258    | )      |   |                      | (47,162 | )      |   |   | (845,032 | ) |   |   | (3,362,837 | ) |
|                           |   |      |     |   |                 |   |      |                                       |   |   |          |   |   |                      |    |   |   |   |   |   |   |   |   |   |
| Net      book amount           |   |      | 375,946  |   |                 |   | 639,212   |                                       |   |   | 586,408       |   |   |                      | -       |   |   |   | 149,213 |   |   |   | 1,750,779 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 6  | Land      use rights - Group |
|---------|------------------------------|

|                      |   | 2008   |    |   | 2007   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|
|                      |   | US$    |    |   | US$    |   |
|                      |   |   |    |   |   |   |
| At      1 July            |   |   | 383,234 |   |   |   | 381,255 |   |
| Exchange      differences |   |   | 44,739  |   |   |   | 18,456 |   |
| Amortization              |   |   | (22,212 | )      |   |   | (16,477 | ) |
|                      |   |   |    |   |   |   |   |   |
| At      30 June           |   |   | 405,761 |   |   |   | 383,234 |   |

|                                |   | 2008   |    |   | 2007   |   |
|-------------------------------------|--------|--------|---------|--------|--------|--------|
|                                |   | US$    |    |   | US$    |   |
|                                |   |   |    |   |   |   |
| Outside      Hong Kong, held on:    |   |   |    |   |   |   |
| Leases      between 10 and 50 years |   |   | 405,761 |   |   |   | 383,234 |   |

| 7 | Investment      in an associate |
|---|---------------------------------|

|                     |   | 2008   |    |   | 2007   |   |
|--------------------------|--------|--------|---------|--------|--------|--------|
|                     |   | US$    |    |   | US$    |   |
|                     |   |   |    |   |   |   |
| At      1 July           |   |   | 73,825  |   |   |   | 208,988 |   |
| Share      of loss       |   |   | (76,525 | )      |   |   | (139,095 | ) |
| Exchange      difference |   |   | 2,700   |   |   |   | 3,932 |   |
|                     |   |   |    |   |   |   |   |   |
| At      30 June          |   |   | -       |   |   |   | 73,825 |   |

| (i) | Particulars      of the associate of the Group are asfollows: |
|-----|---------------------------------------------------------------|

| Name of associate                            |   | Place      of incorporationand business |   | Principal      activities |   | Issued      and fully paid      share capital |   | Effectiveshareholding held |
|----------------------------------------------|--------|-----------------------------------------|--------|---------------------------|--------|-----------------------------------------------|--------|----------------------------|
|                                         |   |                                    |   |                      |   |                                          |   |                       |
| Pericom      Electronics (Hong Kong) Limited |   | Hong      Kong                          |   | Investment      holding   |   | HK$4,460,000                                  |   | 40%                        |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 7 | Investment      in an associate (Continued) |
|---|---------------------------------------------|

| (ii) | The      Group’s share of the results of the associate, and its aggregated assets      and liabilities are as follows: |
|------|------------------------------------------------------------------------------------------------------------------------------|

|                      |   | 2008   |    |   | 2007   |   |     | 2006   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|----------|--------|--------|
|                      |   | US$    |    |   | US$    |   |     | US$    |   |
|                      |   |   |    |   |   |   |     |   |   |
| Total      assets         |   |   | 4,132   |   |   |   | 101,676  |   |   |   | 247,897 |   |
| Total      liabilities    |   |   | 4,132   |   |   |   | 27,851   |   |   |   | (38,909 | ) |
|                      |   |   |    |   |   |   |     |   |   |   |   |   |
| Net      assets           |   |   | -       |   |   |   | 73,825   |   |   |   | 286,806 |   |
|                      |   |   |    |   |   |   |     |   |   |   |   |   |
| Revenue      for the year |   |   | 37,612  |   |   |   | 67,136   |   |   |   | 35,628 |   |
| Loss      for the year    |   |   | (76,525 | )      |   |   | (139,095 | )      |   |   | (19,730 | ) |

| 8 | Inventories |
|---|-------------|

|                  |   | 2008   |      |   | 2007   |   |
|-----------------------|--------|--------|-----------|--------|--------|--------|
|                  |   | US$    |      |   | US$    |   |
|                  |   |   |      |   |   |   |
| Raw      material     |   |   | 1,190,857 |   |   |   | 719,086 |   |
| Finished      goods   |   |   | 574,811   |   |   |   | 757,005 |   |
| Work      in progress |   |   | 43,807    |   |   |   | 152,251 |   |
|                  |   |   |      |   |   |   |   |   |
|                  |   |   | 1,809,475 |   |   |   | 1,628,342 |   |

|   | The      cost of inventories recognised as expenses and included in the cost of      sales amounted to US$5,839,113 (2007:  US$5,143,078). |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

| 9  | Other      financial assets at fair value through profit or  loss |
|---------|-------------------------------------------------------------------|

|                                             |   | 2008   |      |   | 2007       |   |
|--------------------------------------------------|--------|--------|-----------|--------|------------|--------|
|                                             |   | US$    |      |   | US$        |   |
|                                             |   |   |      |   | (Restated) |   |
|                                             |   |   |      |   |       |   |
| Marketable      equity securities, at fair value |   |   | 2,990,740 |   |       |   | 1,225,815 |   |
| Marketable      debt securities, at fair value   |   |   | 1,702,201 |   |       |   | 1,817,164 |   |
|                                             |   |   | 4,692,941 |   |       |   | 3,042,979 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 10 | Trade      and other receivables |
|----|----------------------------------|

|                                   |   | 2008   |      |   | 2007   |   |
|----------------------------------------|--------|--------|-----------|--------|--------|--------|
|                                   |   | US$    |      |   | US$    |   |
|                                   |   |   |      |   |   |   |
| Trade      receivables                 |   |   | 1,722,438 |   |   |   | 1,681,348 |   |
| Other      receivables and prepayments |   |   | 347,593   |   |   |   | 387,137 |   |
|                                   |   |   | 2,070,031 |   |   |   | 2,068,485 |   |

|   | (a) | The      Group normally grants credit terms to its customers ranging from 30 to 90      days. In certain circumstances, longer credit terms are given based on      negotiated contract terms. Trade receivables that are less than three      months past due are not considered impaired. As of 30 June 2008, trade      receivables of approximately US$526,067 (2007: US$647,492) were past due      but not impaired. These relate to a number of independent customers for      whom there is no recent history of default. The Group’s approach of      managing credit risk is disclosed in Note 3.  The aging analysis      of trade receivables by past due date is as  follows: |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|              |   | 2008   |      |   | 2007   |   |
|-------------------|--------|--------|-----------|--------|--------|--------|
|              |   | US$    |      |   | US$    |   |
|              |   |   |      |   |   |   |
| Not      yet due  |   |   | 1,196,371 |   |   |   | 1,033,856 |   |
| 1 -      30 days  |   |   | 490,131   |   |   |   | 615,692 |   |
| 31      - 60 days |   |   | 21,416    |   |   |   | 31,800 |   |
| 61      - 90 days |   |   | 14,520    |   |   |   | - |   |
|              |   |   | 1,722,438 |   |   |   | 1,681,348 |   |

|   | (b) | The      carrying amounts of trade and other receivables and prepayments are      denominated in the followingcurrencies: |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

|   |   | 2008   |      |   | 2007   |   |
|--------|--------|--------|-----------|--------|--------|--------|
|   |   | US$    |      |   | US$    |   |
|   |   |   |      |   |   |   |
| US$    |   |   | 1,451,590 |   |   |   | 1,520,752 |   |
| RMB    |   |   | 563,561   |   |   |   | 456,475 |   |
| HK$    |   |   | 54,880    |   |   |   | 91,258 |   |
|   |   |   | 2,070,031 |   |   |   | 2,068,485 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 11 | Cash      and cash equivalents |
|----|--------------------------------|

|   |   | 2008   |      |   | 2007   |   |
|--------|--------|--------|-----------|--------|--------|--------|
|   |   | US$    |      |   | US$    |   |
|   |   |   |      |   |   |   |
| US$    |   |   | 4,922,538 |   |   |   | 6,271,975 |   |
| RMB    |   |   | 3,805,427 |   |   |   | 1,913,760 |   |
| HK$    |   |   | 29,473    |   |   |   | 204,224 |   |
|   |   |   | 8,757,438 |   |   |   | 8,389,959 |   |

| 12  | Share      capital |
|----------|--------------------|

|                                             |   | Number      ofshares |      |   | Issued      andfully      paid |   |
|--------------------------------------------------|--------|----------------------|-----------|--------|--------------------------------|--------|
|                                             |   |                 |      |   | US$                            |   |
|                                             |   |                 |      |   |                           |   |
| Series      A preferred shares of US$ 0.5 each   |   |                 |      |   |                           |   |
| Balance      at 30 June 2007 and 2008            |   |                 | 5,054,309 |   |                           |   | 2,527,155 |   |
|                                             |   |                 |      |   |                           |   |   |   |
| Series      B preferred shares of US$ 1.1 each   |   |                 |      |   |                           |   |   |   |
| Balance      at 30 June 2007 and 2008            |   |                 | 5,499,999 |   |                           |   | 6,049,999 |   |
|                                             |   |                 |      |   |                           |   |   |   |
| Series      C preferred shares of US$ 1.667 each |   |                 |      |   |                           |   |   |   |
| Balance      at 30 June 2007 and 2008            |   |                 | 6,000,000 |   |                           |   | 10,002,000 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 12  | Share      capital (Continued) |
|----------|--------------------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 13  | Trade      payables |
|----------|---------------------|

|   |   | 2008   |    |   | 2007   |   |
|--------|--------|--------|---------|--------|--------|--------|
|   |   | US$    |    |   | US$    |   |
|   |   |   |    |   |   |   |
| US$    |   |   | 155,800 |   |   |   | 2,991 |   |
| RMB    |   |   | 542,642 |   |   |   | 569,057 |   |
|   |   |   | 698,442 |   |   |   | 572,048 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 14  | Share      option |
|----------|-------------------|

|               |   | 2008                                           |   |   | 2007                                   |   |
|--------------------|--------|------------------------------------------------|--------|--------|----------------------------------------|--------|
|               |   | Averageexerciseprice      in US$per      share |   |   | Number      of share options |   |   | Averageexerciseprice      in US$per      share |   |   | Number      ofshare options |   |
|               |   |                                           |   |   |                                   |   |   |   |   |   |   |   |
| (1)      Plan 1994 |   |                                           |   |   |                                   |   |   |   |   |   |   |   |
| At      1 July     |   |                                           | 0.25   |   |                                   |   | 1,002,667 |   |   |   | 0.26 |   |   |   | 1,421,167 |   |
| Granted            |   |                                           | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
| Forfeited          |   |                                           | -      |   |                                   |   | - |   |   |   | 0.30 |   |   |   | (299,291 | ) |
| Exercised          |   |                                           | 0.13   |   |                                   |   | (50,000 | ) |   |   | 0.30 |   |   |   | (119,209 | ) |
| Lapsed             |   |                                           | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
|               |   |                                           |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| At      30 June    |   |                                           | 0.25   |   |                                   |   | 952,667 |   |   |   | 0.25 |   |   |   | 1,002,667 |   |
|               |   |                                           |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| (2)      Plan 2006 |   |                                           |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| At      1 July     |   |                                           | 0.30   |   |                                   |   | 322,744 |   |   |   | - |   |   |   | - |   |
| Granted            |   |                                           | 0.40   |   |                                   |   | 100,000 |   |   |   | 0.30 |   |   |   | 346,768 |   |
| Forfeited          |   |                                           | 0.30   |   |                                   |   | (26,358 | ) |   |   | 0.30 |   |   |   | (20,586 | ) |
| Exercised          |   |                                           | 0.30   |   |                                   |   | (28,650 | ) |   |   | 0.30 |   |   |   | (3,438 | ) |
| Lapsed             |   |                                           | -      |   |                                   |   | - |   |   |   | - |   |   |   | - |   |
|               |   |                                           |   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| At      30 June    |   |                                           | 0.33   |   |                                   |   | 367,736 |   |   |   | 0.30 |   |   |   | 322,744 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 14  | Share      option (continued) |
|----------|-------------------------------|

| Fair      value per option    |                          | US$0.48 |
|-------------------------------|-------------------------------|---------|
| Initial      underlying price |                          | US$0.59 |
| Exercise      price per share |                          | US$0.40 |
| Volatility                    |                          | 66.68%  |
| Maturity      Date            | 10      years from Grant date |
| Annual      dividend yield    |                          | 0.00%   |
| Risk-free      interest rate  |                          | 4.36%   |

| 15  | Deferred      income tax |
|----------|--------------------------|

|                                            |   | Accelerated      tax depreciation |    |   | Tax      losses |   |    | Total  |   |
|-------------------------------------------------|--------|----------------------------------------|---------|--------|-----------------|--------|---------|--------|--------|
|                                            |   | US$                                    |    |   | US$             |   |    | US$    |   |
|                                            |   |                                   |    |   |            |   |    |   |   |
| At      1 July 2006                             |   |                                   | 11,556  |   |            |   | (11,556 | )      |   |   | - |   |
| Charged/(credited)      to the income statement |   |                                   | 23,528  |   |            |   | (23,528 | )      |   |   | - |   |
|                                            |   |                                   |    |   |            |   |    |   |   |   |   |   |
| At      30 June 2007                            |   |                                   | 35,084  |   |            |   | (35,084 | )      |   |   | - |   |
| Charged/(credited)      to the income statement |   |                                   | (11,098 | )      |            |   | 11,098  |   |   |   | - |   |
|                                            |   |                                   |    |   |            |   |    |   |   |   |   |   |
| At 30 June      2008                            |   |                                   | 23,986  |   |            |   | (23,986 | )      |   |   | - |   |

| 16  | Revenue |
|----------|---------|

|   | Revenue      represents income from sales of goods received or    receivable. |
|--------|-------------------------------------------------------------------------------|

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 17 | Other      income |
|----|-------------------|

|                                                                                   |   | 2008   |                     |   | 2007   |   |                           | 2006   |   |
|----------------------------------------------------------------------------------------|--------|--------|--------------------------|--------|--------|--------|--------------------------------|--------|--------|
|                                                                                   |   | US$    |                     |   | US$    |   |                           | US$    |   |
|                                                                                   |   |   |                     |   |   |   |                           |   |   |
| Investment      gains                                                                  |   |   |                     |   |   |   |                           |   |   |
| -      Gain on disposal of financial assets at fair value through profit or      loss  |   |   | 113,964                  |   |   |   | 39,986                         |   |   |   | 181,774 |   |
| -      Fair value change in financial assets at fair value through profit or      loss |   |   | (6,030                   | )      |   |   | (23,659                        | )      |   |   | - |   |
| Other      income                                                                      |   |   | 143,364                  |   |   |   | 410,357                        |   |   |   |   |   |
| Investment      interest income                                                        |   |   |                     |   |   |   |                           |   |   |   | 171,010 |   |
| Bank      interest income                                                              |   |   |                     |   |   |   |                           |   |   |   | 16,192 |   |
| Others                                                                                 |   |   |                     |   |   |   |                           |   |   |   | 51,898 |   |
| Exchange      differences                                                              |   |   |           |   |   |   |            |   |   |   | 83,899 |   |
|                                                                                   |   |   | 251,298                  |   |   |   | 426,684                        |   |   |   | 504,773 |   |

| 18 | Finance      income |
|----|---------------------|

|                      |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|---------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                      |   | US$    |    |   | US$    |   |    | US$    |   |
|                      |   |   |    |   |   |   |    |   |   |
| Bank      interest income |   |   | 191,318 |   |   |   | 209,877 |   |   |   | - |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 19 | Income      tax expense |
|----|-------------------------|

|   | The      amount of taxation charged to the consolidated income statement      represents: |
|--------|-------------------------------------------------------------------------------------------|

|                                |   | 2008   |    |   | 2007   |   |   | 2006   |   |
|-------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
|                                |   | US$    |    |   | US$    |   |   | US$    |   |
|                                |   |   |    |   |   |   |   |   |   |
| PRC      enterprise income tax      |   |   |    |   |   |   |   |   |   |
| -      Current                      |   |   | 185,316 |   |   |   | 96,671 |   |   |   | - |   |
| -      Over-provision in prior year |   |   | (13,374 | )      |   |   | -      |   |   |   | - |   |
| Deferred      income tax (note 15)  |   |   | -       |   |   |   | -      |   |   |   | - |   |
| Income      tax expense             |   |   | 171,942 |   |   |   | 96,671 |   |   |   | - |   |

|                                                       |   | 2008   |      |   | 2007   |   |      | 2006   |   |
|------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                       |   | US$    |      |   | US$    |   |      | US$    |   |
|                                                       |   |   |      |   |   |   |      |   |   |
| Profit      before income tax                              |   |   | 1,472,232 |   |   |   | 1,797,074 |   |   |   | 2,598,277 |   |
| Adjust      for: Share of losses of an associate           |   |   | 76,525    |   |   |   | 139,095   |   |   |   | - |   |
|                                                       |   |   | 1,548,757 |   |   |   | 1,936,169 |   |   |   | 2,598,277 |   |
|                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Calculated      at tax rate of 16.5% (2007, 2006: 17.5%)   |   |   | 255,545   |   |   |   | 338,830   |   |   |   | 454,698 |   |
| Effect      of different taxation rates in other countries |   |   | (236,411  | )      |   |   | (129,110  | )      |   |   | (89,218 | ) |
| Income      not subject to taxation                        |   |   | (139,096  | )      |   |   | (400,767  | )      |   |   | (94,777 | ) |
| Expenses      not deductible for taxation purposes         |   |   | 13,455    |   |   |   | 32,626    |   |   |   | 107,048 |   |
| Over-provision      in prior year                          |   |   | (13,374   | )      |   |   | -         |   |   |   | - |   |
| Tax      losses not recognised                             |   |   | 291,823   |   |   |   | 250,045   |   |   |   | 316,929 |   |
| Utilization      of tax loss not previously recognized     |   |   | -         |   |   |   | -         |   |   |   | (694,680 | ) |
| Temporary      differences not recognised                  |   |   | -         |   |   |   | 5,047     |   |   |   | - |   |
| Income      tax expense                                    |   |   | 171,942   |   |   |   | 96,671    |   |   |   | - |   |

----

| 20 | Notes      to the consolidated cash flowstatement |
|----|---------------------------------------------------|

| (a)  | Reconciliation      of profit before taxation to cash generated from  operations |
|-----------|----------------------------------------------------------------------------------|

|                                                                                   |   | 2008   |      |   | 2007   |   |      | 2006   |   |
|----------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
|                                                                                   |   | US$    |      |   | US$    |   |      | US$    |   |
|                                                                                   |   |   |      |   |   |   |      |   |   |
|                                                                                   |   |   |      |   |   |   |      |   |   |
| Profit      before taxation                                                            |   |   | 1,472,232 |   |   |   | 1,797,074 |   |   |   | 2,598,277 |   |
| Adjustments      for:                                                                  |   |   |      |   |   |   |      |   |   |   |   |   |
| -      Fair value change in financial assets at fair value through profit or      loss |   |   | 6,030     |   |   |   | 23,659    |   |   |   | - |   |
| -      Depreciation of property, plant and equipment                                   |   |   | 661,348   |   |   |   | 666,956   |   |   |   | 214,682 |   |
| -      Gain on disposal of financial assets at fair value through profit or      loss  |   |   | (113,964  | )      |   |   | (39,986   | )      |   |   | (181,774 | ) |
| -      Loss on disposal of property, plant and equipment                               |   |   | 69,807    |   |   |   | -         |   |   |   | - |   |
| -      Amortisation of land use right                                                  |   |   | 22,212    |   |   |   | 16,477    |   |   |   | 23,040 |   |
| -      Interest income                                                                 |   |   | (191,318  | )      |   |   | (209,877  | )      |   |   | (187,202 | ) |
| -      Share of losses of an associate                                                 |   |   | 76,525    |   |   |   | 139,095   |   |   |   | 19,730 |   |
| -      Share-based payments                                                            |   |   | 43,261    |   |   |   | 119,885   |   |   |   | 24,558 |   |
| -      Exchange gain                                                                   |   |   | -         |   |   |   | -         |   |   |   | (44,817 | ) |
| -      Allowances for inventories                                                      |   |   | -         |   |   |   | -         |   |   |   | 600,557 |   |
| -      Unrealised loss on other investments                                            |   |   | -         |   |   |   | -         |   |   |   | 46,516 |   |
|                                                                                   |   |   | 2,046,133 |   |   |   | 2,513,283 |   |   |   | 3,113,567 |   |
|                                                                                   |   |   |      |   |   |   |      |   |   |   |   |   |
| Changes      in working capital:                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| (Increase)/decrease      in inventories                                                |   |   | (181,133  | )      |   |   | 634,293   |   |   |   | (1,061,627 | ) |
| (Increase)/decrease      in trade and other receivables and prepayments                |   |   | (1,546    | )      |   |   | 1,190,188 |   |   |   | (1,035,353 | ) |
| Decrease      in amount due from a related company                                     |   |   | (69,651   | )      |   |   | (28,281   | )      |   |   | - |   |
| Increase      in amount due to related company                                         |   |   | 4,159     |   |   |   | -         |   |   |   | - |   |
| Increase/(decrease)      in trade and other payables                                   |   |   | 460,408   |   |   |   | 54,217    |   |   |   | (88,941 | ) |
| Cash      generated from operations                                                    |   |   | 2,258,370 |   |   |   | 4,363,700 |   |   |   | 927,646 |   |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 20 | Notes      to the consolidated cash flow statement  (Continued) |
|----|-----------------------------------------------------------------|

| (b) | Proceeds      from disposal of property, plant andequipment |
|-----|-------------------------------------------------------------|

|                                                          |   | 2008   |    |   | 2007   |   |
|---------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                          |   | US$    |    |   | US$    |   |
|                                                          |   |   |    |   |   |   |
| Net      book amount                                          |   |   | 69,807  |   |   |   | - |   |
| Loss      on disposals of property, plant and equipment       |   |   | (69,807 | )      |   |   | - |   |
| Proceeds      from disposals of property, plant and equipment |   |   | -       |   |   |   | - |   |

| 21 | Operating      lease commitments |
|----|----------------------------------|

|                            |   | 2008   |   |   | 2007   |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|
|                            |   | US$    |   |   | US$    |   |
|                            |   |   |   |   |   |   |
| Within      one year            |   |   | 86,920 |   |   |   | 158,302 |   |
| Between      one and five years |   |   | -      |   |   |   | 75,204 |   |
|                            |   |   | 86,920 |   |   |   | 233,506 |   |

| 22 | Related      party transactions |
|----|---------------------------------|

|   | The      major related parties that had transactions with the Group were as      follows: |
|--------|-------------------------------------------------------------------------------------------|

| Name of related      parties           |   | Relationship with the      Group |
|----------------------------------------|--------|----------------------------------|
|                                   |   |                             |
| Pericom      Semiconductor Corporation |   | Shareholder                      |
| eCera      Com Tek                     |   | Related      company             |
| Pericom      Taiwan Limited            |   | Related      company             |

----

|   | NOTES      TO THE CONSOLIDATED FINANCIALSTATEMENTS |
|--------|----------------------------------------------------|

| 22 | Related      party transactions (continued) |
|----|---------------------------------------------|

| (a)  | Transactions      with related parties |
|-----------|----------------------------------------|

|   | The      following transactions were carried out with related parties under the      normal course of the Group’sbusiness: |
|--------|----------------------------------------------------------------------------------------------------------------------------------|

|                                                           |   | 2008   |     |   | 2007   |   |     | 2006   |   |
|----------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                           |   | US$    |     |   | US$    |   |     | US$    |   |
|                                                           |   |   |     |   |   |   |     |   |   |
| Sales      of goods                                            |   |   |     |   |   |   |     |   |   |
| -      eCera Com Tek                                           |   |   | 735,115  |   |   |   | 294,138  |   |   |   | - |   |
| -      Pericom Semiconductor Corporation                       |   |   | 17,515   |   |   |   | 115,857  |   |   |   | 120,825 |   |
|                                                           |   |   |     |   |   |   |     |   |   |   |   |   |
| Purchases      of goods from Pericom Semiconductor Corporation |   |   | (753,877 | )      |   |   | (746,835 | )      |   |   | - |   |
|                                                           |   |   |     |   |   |   |     |   |   |   |   |   |
| Service      income from Pericom Semiconductor Corporation     |   |   | -        |   |   |   | 20,000   |   |   |   | 33,333 |   |
|                                                           |   |   |     |   |   |   |     |   |   |   |   |   |
| Overhead      recharges to Pericom Semiconductor Corporation   |   |   | (74,494  | )      |   |   | (179,764 | )      |   |   | (83,799 | ) |

| (b)  | Year-end      balances |
|-----------|------------------------|

|                                     |   | 2008   |     |   | 2007   |   |
|------------------------------------------|--------|--------|----------|--------|--------|--------|
|                                     |   | US$    |     |   | US$    |   |
|                                     |   |   |     |   |   |   |
| Amount      due from a related company   |   |   |     |   |   |   |
| -      eCera Com Tek                     |   |   | 97,932   |   |   |   | 28,281 |   |
|                                     |   |   |     |   |   |   |   |   |
| Amount      due to a shareholder         |   |   |     |   |   |   |   |   |
| -      Pericom Semiconductor Corporation |   |   | (122,534 | )      |   |   | (117,706 | ) |
|                                     |   |   |     |   |   |   |   |   |
| Amount      due to a related company     |   |   |     |   |   |   |   |   |
| -      Pericom Taiwan Limited            |   |   | (4,159   | )      |   |   | - |   |

----

|  | 2. | Financial Statement      Schedules |
|--|----|------------------------------------|

|  | 3. | See      Item 15(b) |
|--|----|--------------------------|

| (b) | Exhibits |
|-----|----------|

| Exhibit      Number |    | Description      of Documents                                                                                                                                |
|---------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 23.1                |    | Consent      of PCP CPA Limited                                                                                                                              |
|                |         |
| 31.1                |    | Certification      of Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 promulgated      under the Securities Exchange Act of 1934.                |
|                |         |
| 31.2                |    | Certification      of Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 promulgated      under the Securities Exchange Act of 1934.                |
|                |         |
| 32.1                |    | Certification      of Chief Executive Officer in accordance with 18 U.S.C. 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002. |
|                |         |
| 32.2                |    | Certification      of Chief Financial Officer in accordance with 18 U.S.C. 1350, as adopted      pursuant to Section 906 of the Sarbanes-Oxley Act of  2002. |

| (c) | See      Item 15(a)(2) |
|-----|-----------------------------|

----

|   |   | PERICOM      SEMICONDUCTOR CORPORATION                                              |
|--------|--------|-------------------------------------------------------------------------------------|
|   |   |                                                                                |
|   |   |                                                                                |
|   | By:    | /s/   ALEX      C. HUI                                               |
|   |   | Alex      C. Hui                                                                    |
|   |   | Chief      Executive Officer, President and Chairman      of the Board of Directors |
|   |   |                                                                                |
|   | Date:  | June      4, 2009                                                                   |

----

| /s/      PCP CPA LimitedPCP      CPA LimitedCertified      Public Accountants |
|-------------------------------------------------------------------------------|
| Hong      Kong                                                                |
|                                                                          |
| May      20, 2009                                                             |

----