SST > SST Nominates Bryant R. Riley for Election to its Board of Directors; Annual Meeting to be Held June 27, 2008

SST Nominates Bryant R. Riley for Election to its Board of Directors; Annual Meeting to be Held June 27, 2008

News Release

For More Information Contact:

Leslie Green
Green Communications Consulting, LLC
(650) 312-9060

SUNNYVALE, Calif., May 23, 2008 -- SST (Silicon Storage Technology, Inc.) (NASDAQ: SSTI), a leader in flash memory technology, today announced that pursuant to a settlement agreement with entities and persons affiliated with Riley Investment Management, LLC, it will include Bryant R. Riley on management’s slate of directors for election at the company’s annual meeting of shareholders to be held on June 27, 2008. If elected by the company’s shareholders, Riley will join the Board at the annual meeting and will be appointed to the Nominating and Corporate Governance Committee and the Compensation Committee. Pursuant to the settlement agreement, Riley Investment Management, LLC and related affiliates will withdraw their proposed slate of directors for election at the annual meeting of shareholders.

"I appreciate the opportunity to join the Board of SST," said Bryant R. Riley. "Over the last few days, I have met the independent directors and feel confident that we can work together to enhance value for shareholders. As part of the Nominating Committee, I have numerous candidates that I believe would be a strong fit for the Board and I will be actively involved in this process. I look forward to working closely together with the other directors to find a strong fit for the benefit of the company, its shareholders and customers."

"We are pleased to nominate Bryant to the Board of Directors," said Bing Yeh, president and CEO of SST. "SST is executing on a strategy of diversification that we believe will allow for better growth opportunities for our company and more return for our shareholders. We look forward to drawing upon Bryant’s experience and expertise as we continue to build upon the strong foundation we have laid."

About Silicon Storage Technology, Inc.
Headquartered in Sunnyvale, California, SST designs, manufactures and markets a diversified range of memory and non-memory products for high volume applications in the digital consumer, networking, wireless communications and Internet computing markets. Leveraging its proprietary, patented SuperFlash technology, SST is a leading provider of nonvolatile memory solutions with product families that include various densities of high functionality flash memory components and flash mass storage products. The Company also offers its SuperFlash technology for embedded applications through its broad network of world-class manufacturing partners and technology licensees, including TSMC, which offers it under its trademark Emb-FLASH. SST’s non-memory products include NAND controller-based products, smart card ICs and modules, flash microcontrollers and radio frequency ICs and modules. Further information on SST can be found on the Company's Web site at http://www.sst.com.

Forward-Looking Statements
Except for the historical information contained herein, this news release contains forward-looking statements regarding memory and non-memory market conditions, SST’s future financial performance, the performance of new products, growth opportunities, SST’s licensing business, SST’s ability to diversify its business, the transition of SST’s products to smaller geometrics, SST’s ability to bring new products to market and shareholder returns, all of which involve risks and uncertainties. These risks may include timely development, acceptance and pricing of new products, the terms, conditions and revenue recognition issues associated with licensees’ royalty payments, the impact of competitive products and pricing, and general economic conditions as they affect SST’s customers, as well as other risks detailed from time to time in the SST’s SEC reports, including the Annual Report on Form 10-K for the year ended December 31, 2007 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2008. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, SST disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

For more information about SST and the company’s comprehensive list of product offerings, please call 1-888/SST-CHIP. Information can also be requested via email to literature@sst.com or through SST’s Web site at http://www.sst.com. SST’s head office is located at 1171 Sonora Court, Sunnyvale, Calif.; telephone: 408/735-9110; fax: 408/735-9036.

The SST logo and SuperFlash are registered trademarks of Silicon Storage Technology, Inc. All other trademarks or registered trademarks are the property of their respective holders.

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