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Bill,

I'm trying to get my arms around GIGAMEDIA and I have a few questions.

1. In January 2007 Gigamedia purchased 40.3% of the shares of T2CN, in addition they have convertable preferred stock and options that will put their ownership at approx. 51% in May 2007. I am having difficulties in finding revenue and net income numbers on T2CN, do you have a link to where I could find this information or if not do you have summary information available?

2. There have been rumors that Everest might be acquired, as the main licensee for Gigamedia's gaming software I would like to find out the terms of the agreement between Everest and Gigamedia and get your thoughts on the concerns of Everest being taken over. Also, to clarify my understanding of Everest (a sub of UIM) is that Gigamedia has no ownership interest in the company, the financial statements are consolidated with Everest because they are a VIE under FIN 46(R).

3. Do you know the expected launch date of the real money MahJong by Carmen Media Group? I have hear that there are technical issues and the launch is delayed.

4. You mentioned in your update of Gigamedia that FunTown users were dropping about 3% a quarter, (117K in 1st quarter, 110K in 2nd quarter, 109K in 3rd quarter, 106K in 4th quarter). The second and third quarters are typically slower periods in this industry, the fourth quarter is of concern, the average monthly rate per user went from $13.82 in the 3rd quarter to $16.58 in the 4th, did they have a price increase? Did this cause the drop in users or is this an on going trend.

5. The PE has been around 20, with EPS estimates at .61 for 2007 the stock would price out at around $12, what do you think the PE should be?
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