SPIRIT wins new contract with HTC again

VON San Jose, California - March, 21, 2007 - SPIRIT DSP, the world's leading provider of embedded voice, audio and video software products, announced today that High Tech Computer Corp. (HTC), one of the largest ODMs in the world, extended its partnership with SPIRIT and licensed SPIRIT's TeamSpirit® Mobile Voice Engine to be integrated into HTC new mobile devices. SPIRIT already won several deals with HTC during the last 20 months. SPIRIT's embedded solutions are already acknowledged as the best by many major global mobile OEMs/ODMs, including Quanta, Compal and HTC.

"HTC is definitely one of the pioneers of mass-market mobile VoIP, it started pilot VoIP projects long ago," said Slava Borilin, VP Products at SPIRIT. "As mobile VoIP adoption moves from pilots to world top carriers and services providers, vendors need proven Voice Engine solutions from SPIRIT. As market demand matures, service providers and OEMs need higher voice quality, as quality is tightly related to subscribers' satisfaction and churn/retain rates. Experienced SPs and OEMs measure quality of VoIP solutions in the real environments with industrial VoIP testing equipment, setting high expectations for voice quality that only SPIRIT meets today."

SPIRIT surpasses all competitive solutions, delivering 4.32 MOS quality* for VoIP calls over WiFi in lengthy 30+ minutes calls, according to the test results of a major Asian mobile carrier. The average real conversation voice quality delivered by typical VoIP service providers nowadays is less then 3.9MOS, according to the estimations of a leading European VoIP operator. Mobile video over IP is a next step for mobile devices. SPIRIT with its new product TeamSpirit® Mobile Voice & Video is setting new quality level for the whole industry now, already delivering 3-way video-conference call on mobile feature-phones.

TeamSpirit® Mobile voice engine runs on HTC devices promoted by several largest mobile operators in Asia, Japan and Europe under different brand names. SPIRIT-HTC cooperation has started in 2005, when SPIRIT's voice enhancement software was integrated into HTC Universal (the world's first 3G Video Telephony smart phone based on Windows Mobile 5.0), HTC Breeze and other HTC phones to deliver superior voice quality in full-duplex voice and video conferencing to T-Mobile, Orange, Vodafone and other carriers. The latest SPIRIT - HTC deal signed in 2007 is the natural evolvement of long-term tight cooperation between the 2 companies.

* calculated by a mean opinion score (MOS), a common objective measure of conversational voice quality that rates calls on a scale from one (bad) to five (excellent), and 4.5 MOS is considered to be toll-quality.

About SPIRIT

SPIRIT DSP (www.spiritDSP.com) employs 140 professionals, has been in the international software licensing business since 1992. A bootstrap company, SPIRIT has been profitable for 14 years. For the last 10 years SPIRIT's focus has been voice, audio, video and data communication software products. SPIRIT counts among its customers Adobe, Agere, ARM, Atmel, Compal, Flextronics, Ericsson, HP, HTC, Kyocera, LG, MediaRing, Microsoft, National Semiconductor, NEC, Nortel Networks, Oracle, Paltalk, Panasonic, Philips Semiconductor, Polycom, Radvision, Samsung, Siemens, Texas Instruments, Toshiba and Trinity Convergence, among 200+ other communication OEMs and software vendors. SPIRIT communication software is used in over 80 countries and powers more than 100 million embedded voice channels. SPIRIT DSP is a member of major voice-related developer communities, including Intel® Developer Network, ARM® Connected Community, Philips Nexperia Partnership, TI Third Party Network, TI OMAP Developer Network for Wireless handsets and PDAs. SeeStorm is SPIRIT affiliate for synthetic video conferencing.

About HTC

Founded in 1997, High Tech Computer Corp. (HTC) designs, manufactures and markets innovative, feature rich smartphone and PDA phone devices. Today HTC is the second and the fastest growing (nearly 280% shipment increase during the last year) vendor on the EMEA smart mobile device market. The company is listed on the Taiwan Stock Exchange under ticker 2498. For more information about HTC, please visit www.htc.com