The following forward-looking statements reflect GigaMedia's expectations as of August 12, 2008. Given potential changes in economic conditions and consumer spending, the evolving nature of gaming software, online games and broadband, and various other risk factors, including those discussed in the company's 2007 Annual Report or 20-F filing with the U.S. Securities and Exchange Commission referenced below, actual results may differ materially.

Gaming software business. GigaMedia expects strong revenue growth in its gaming software business for the full year 2008. Nonetheless, the company expects third-quarter revenues to be slightly lower than those of the second quarter, in line with a general industry slowdown due to summer seasonality. The seasonal slowdown may be offset in part by the launch of new products and integration of the Everest casino and poker platform.

Asian online games business. The company expects revenues to increase in the second half of 2008 and into 2009, driven by major new game launches including Holic, NBA STREET Online, and Warhammer.

Broadband ISP business. GigaMedia has retained financial advisors to assist with the potential disposal of this legacy business unit and remains in discussions with identified buyers concerning a proposed sale of the business.

This outlook reflects GigaMedia's current and preliminary view, which is subject to change.