ESS TECHNOLOGY acquires PICTOS TECNOLOGIES Inc.

FREMONT, Calif., June 9, 2003 — ESS Technology (Nasdaq: ESST), a leading supplier of silicon solutions for digital video and audio consumer electronics today announced that it has acquired Pictos Technologies Inc. for $27 million in cash. Pictos Technologies, based in Newport Beach, Calif., is a privately held company that designs, manufactures and markets digital imaging semiconductor products. The acquisition expands ESS’s product lines in the digital consumer electronics market with advanced CMOS sensor and image processor solutions for digital still cameras and cellular camera phones.

Pictos Technologies was created in July 2002 when Conexant Systems, Inc spun off its digital imaging semiconductor business and merged it with Zing Networks, an early leader in advanced imaging and connectivity software. Pictos develops and supplies image processors, CMOS image sensors, camera modules and embedded software. Current Pictos consumer products include one of the world’s smallest VGA color sensors, CMOS imaging sensors and modules, as well as the fastest click-to-click, high performance low power image processors that support multiple digital output formats. These product lines cover a wide range of digital still camera and cellular camera phone products.

Cellular camera phones are the fastest growing market segment in consumer products, with an expected volume of 35 million units this year, and 140 million units forecast in 2006.

Digital still cameras also present an attractive market opportunity with 40 million units forecasted for 2006. Pictos’ CMOS sensor and image processor products are well positioned to address both of these exciting markets.

Robert Blair, president and chief executive officer of ESS Technology commented, “We are excited by the opportunities created for ESS by this acquisition. Pictos Technologies has a talented team of employees and exceptional imaging technology for CMOS sensors, image processors, and advanced camera products that complement ESS’s current consumer digital entertainment offerings. This acquisition expands ESS’s digital consumer product lines with advanced technology imaging solutions targeted for the fast growing consumer digital imaging markets.”

“We believe that combining ESS’s strong manufacturing and proven marketing abilities with Pictos’s advanced camera products should enable ESS to become a significant player in this large and rapidly growing new market,” Mr. Blair concluded.

Patrick Henry, president and chief executive officer of Pictos Technologies said, “We are very excited to be joining the ESS family. ESS has a proven track record of providing leading-edge silicon and system solutions to a variety of high volume digital consumer markets. ESS also has well-established market channels and the customer relationships necessary to take Pictos to the next level of growth. By combining Pictos’s leading technology and established market presence with ESS’s strong resources and organizational knowledge of what it takes to win in high volume consumer electronics markets, ESS will be positioned to grow market share and develop new cost effective products for the emerging digital imaging markets.”

Fred Chan, chairman of ESS Technology said, “ESS’s long term strategy is to introduce new products and solutions targeted for the consumer digital entertainment market. Today ESS is the market leader in digital video solutions and this acquisition expands ESS into the growing digital camera market with the addition of a complementary product portfolio. This is an important acquisition that will help ESS continue to execute our vision of providing complete solutions for the consumer digital entertainment market.”

About ESS Technology

ESS Technology, Inc., is a leading supplier of high-performance feature-rich chips, applications and solutions for digital entertainment markets. ESS provides advanced products that enable the emergence of digital home systems that deliver and manage entertainment and information in the home.

ESS, headquartered in Fremont, California, has R&D, sales, and technical support offices worldwide. ESS Technology’s common stock is traded on the Nasdaq National Market under the symbol “ESST”. ESS Technology’s web site address is: http://www.esstech.com.