Leadis Technology Reports Fourth Quarter 2006 Financial Results and Announces Stock Repurchase Program

Looking forward toward 2007, the company intends to build upon the foundation set in 2006 by creating greater value in its display driver business through product innovation and by leveraging its analog/mixed-signal capabilities to diversify into synergistic markets.

The company seeks to create greater value in its display driver business by focusing on three key areas:

     --   Dynamic Backlight Control:  The company has developed a Dynamic
          Backlight Control algorithm that reduces TFT display module power by
          up to 50%.  The company expects to sample the first of its Dynamic
          Backlight Control (PowerLite(TM)) products in the first half of
          2007, with first revenue following approximately 6 months later.
     --   Serial Interfaces:  Introduction of high speed serial interface
          technologies into its display drivers, thus enabling displays to
          keep up with increasing data rates of mobile handsets. The company
          expects the first of these products to sample in the 2nd half of
     --   Technology Node:  Migrating display driver platforms from the 0.18u
          technology node to 0.15u and 0.13u in 2007 and 2008, respectively.
          The company's first 0.l5u product is expected to sample in the first
          half of 2007.

The company also plans to expand its business beyond display driver ICs. Seeking to capitalize on the anticipated synergy with its existing display driver business and its analog and mixed-signal skillsets, the company is launching internal efforts in the following two areas:

     --   LED Drivers:  As discussed above, the first product is expected to
          begin sampling this quarter.
     --   Touch Sensor Technology Products.  The company is expected to begin
          sampling its initial products in the second half of 2007 with
          revenue expected in 2008.

"In conclusion, 2006 was a year of re-investment in Leadis," said Mr. Alvarez. "New product development is back on track and we expect our investments in new display driver intellectual property, as exemplified by our PowerLite(TM) solutions, to start paying off in the second half of 2007. Our team is also excited by the opportunity to re-position Leadis beyond display drivers and into higher margin product areas such as LED drivers and Touch Sensor Technology. Finally, our strong balance sheet and improved internal performance enables us to actively pursue acquisition candidates to further accelerate our diversification."

Conference Call Today

Leadis will broadcast its conference call today, Tuesday, January 30, 2007 at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss its fourth quarter 2006 earnings and provide additional guidance.

To listen to the call, dial 1-800-810-0924 approximately ten minutes before the start of the call. A taped replay will be made available approximately two hours after the conclusion of the call and will remain available for one week. To access the replay, dial 1-888-203-1112. The confirmation code for the replay is 5429166.

A live webcast of the call will be available on the investor relations section of the company's web site, http://ir.leadis.com . An archived webcast of the call will remain available until the company's next earnings call.

About Leadis Technology, Inc.

Leadis Technology, Inc., headquartered in Sunnyvale, California, designs, develops and markets mixed-signal semiconductors that enable and enhance the features and capabilities of small panel displays, focusing on the mobile handset market. Leadis' core products are color display drivers, which are critical components of displays used in mobile consumer electronic devices. Leadis supplies display drivers supporting the major small panel display technologies, including a-Si and LTPS TFT LCD's, color STN LCD's, and color OLED displays. For more information, visit www.leadis.com.

Non-GAAP Financial Measures

Leadis reports financial information in accordance with generally accepted accounting principles (GAAP), but believes that non-GAAP (previously referred to as "pro-forma") financial measures are helpful in evaluating its ongoing operating results and comparing its performance to comparable companies. Leadis has historically reported non-GAAP financial measures, including net income (loss) and non-GAAP basic and diluted net income (loss) per share, which results excluded stock-based compensation expenses. Starting in the first quarter of 2006, Leadis implemented FAS 123(R), "Share-Based Payment." Financial results for prior year periods, however, are not required to be restated for FAS 123(R). Consequently, Leadis has excluded the effect of expensing stock-based compensation in deriving calculations of net income (loss), net income (loss) per share, gross profit or margin, and certain operating expenses (including cost of sales, research and development and selling, general and administrative). Leadis believes the inclusion of these non-GAAP measures enhances the comparability of current results against the results of prior periods. Leadis management uses these non-GAAP financial measures for internal planning and budgeting purposes. Accordingly, these non-GAAP measures will enable investors to evaluate the company's operating results and business outlook in a manner similar to how the company internally analyzes its operating results and makes strategic decisions. Investors should note, however, that the non-GAAP financial measures used by the company may not be the same non-GAAP financial measures, and may not be calculated in the same manner, as that of other companies. The company does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures alone or as a substitute for financial information prepared in accordance with GAAP. A reconciliation of GAAP financial measures to non- GAAP financial measures is included in the financial statements portion of this press release. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure. For additional information on the non-GAAP financial measures, please see the Form 8-K regarding this press release furnished today with the Securities and Exchange Commission.

Cautionary Language

This press release contains forward-looking statements regarding the company's business and financial outlook for the first quarter of 2007 and remainder of fiscal year 2007 based on the company's current expectations. The words "expect," "will," "should," "would," "anticipate," "project," "outlook," "believe," "intend," "confident," "optimistic," and similar phrases as they relate to future events are intended to identify such forward-looking statements. These forward-looking statements reflect the company's current views and assumptions but are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are the following: risks that the company may not be able to maintain its current level of revenue or its gross margin levels; risks that one or more of the company's concentrated group of customers may reduce demand or price for the company's products or a particular product; the company's dependence on a limited number of products; risks that the company's new products may not be able to be completed in a timely fashion or gain market acceptance; risks associated with the company's efforts to expand its business beyond LCD display drivers, including efforts to develop and market LED controllers and touch sensor technology products; risks related to the semiconductor and mobile handset industries; the company's ability to keep up with technological change; risks associated with any strategic transaction undertaken by the company; risks with managing international activities; and other factors. For a discussion of these and other factors that could impact the company's financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to the company's Annual Report on Form 10-K filed with the SEC on March 15, 2006, in the sections titled Risk Factors and Forward-Looking Statements, and the Form 10-Q for the quarter ended September 30, 2006, which are available at www.leadis.com . The projections in this press release are based on information currently available to the company. Although such projections, as well as the factors influencing them, may change in the future, the company undertakes no responsibility to update the information contained in this press release.

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