THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

Silicon Storage Technology, Inc. (SSTI)

4/28/2006 Proxy Information

BUSINESS RELATIONSHIPS

Mr. Yeh is a member of the board of directors of Silicon Technology Co., Ltd, or Silicon Technology, one of our customers. As of December 31, 2005, we owned a 9% interest in Silicon Technology. In 2005, Silicon Technology accounted for $3.7 million, or 0.9%, of our net product revenues.

Mr. Yeh is a member of the board of directors of Apacer Technology, Inc. or Apacer, one of our customers. As of December 31, 2005, we owned a 10% interest in Apacer. In 2005, Apacer accounted for $2.2 million, or 0.6%, of our net product revenues.

Mr. Yeh is a member of the board of directors of Professional Computer Technology Limited, or PCT, a Taiwanese public company. PCT and its wholly-owned subsidiary Silicon Professional Alliance Corporation, or SPAC, are two of our manufacturersÕ representatives. As of December 31, 2005, we owned a 12% interest in PCT. PCT has a separate company and wholly-owned subsidiary, Silicon Professional Technology Ltd., or SPT, which provides forecasting, planning, warehousing, delivery, billing, collection and other logistic functions for us in Taiwan, China and other Southeast Asia countries. In 2005, PCT and its subsidiaries SPT and SPAC together accounted for $230.7 million, or 58.5%, of our net product revenues. At December 31, 2005, we had net accounts receivable from SPT of $53.8 million.

Mr. Yeh is a member of the board of directors of Powertech Technology, Inc., or PTI, a Taiwanese public company. PTI is one of our vendors. As of December 31, 2005, we owned a 2% interest in PTI. Our purchases from PTI are made pursuant to purchase orders at prevailing market prices. At December 31, 2005, we had net accounts payable to PTI of $5.9 million.

Mr. Yeh is a member of the board of directors of Grace Semiconductor Manufacturing Corporation, or GSMC. Shanghai Grace Semiconductor Manufacturing Corporation, or Grace, is a wholly-owned subsidiary of GSMC. Grace is one of our vendors. As of December 31, 2005, we owned a 10% interest in GSMC. Our purchases from Grace are made pursuant to purchase orders at prevailing market prices. At December 31, 2005, we had net accounts payable to Grace of $4.9 million.

Mr. YehÕs brother is the General Manager of SST International Macao Commercial Offshore Co. Ltd, our processing center. In 2005, he was paid $59,000 in compensation and was granted an option to purchase 2,287 shares of common stock at an exercise price of $4.90 per share.

INDEMNITY AGREEMENTS

We have entered into indemnity agreements with each of our executive officers and directors which provide, among other things, that we will indemnify these persons, under the circumstances and to the extent provided for therein, for expenses, damages, judgments, fines and settlements he or she may be required to pay in actions or proceedings which he or she is or may be made a party by reason of his or her position as our director, officer or agent, and otherwise to the full extent permitted under California law and our bylaws.

As a matter of policy, all transactions between us and any of our officers, directors or principal shareholders will be approved by a majority of the independent and disinterested members of the Board of Directors, and will be on terms no less favorable to us than could be obtained from unaffiliated third parties and will be in connection with our bona fide business purposes.