GigaMedia Announces Positive Results from Restructuring

Core initiatives: Game teams as profit centers; new team incentives GigaMedia Limited

announced today positive initial results from an internal restructuring completed in May, a key part of new management's turnaround plans for its online games business. Management's plans to strengthen the financial performance of GigaMedia's FunTown online games operations include the following: 1) a new strategic focus on casual, self-developed games; 2) an internal restructuring of operations; and 3) new strategic partnerships and acquisitions.  The restructuring centers on the creation of new teams for each major product. Teams are organized like individual studios with complete resources, including planning, operations and technology support. Complementing this are new quarterly incentives tied to team performance. "Strong execution of our restructuring is beginning to drive operational improvements," stated GigaMedia Chief Executive Officer Collin Hwang. "In just one month, we are already seeing a faster, more nimble FunTown." "Our MahJong team recently developed and launched a product update in just 26 days -- a process which used to take months," stated CEO Collin Hwang. "In addition, we are currently finalizing plans for a mid-June launch of a new suite of casino games." Following the restructuring, product teams have begun