During the quarter ended December 31, 2005, we were not a party to any material legal proceedings.
However, we may be subject to other legal proceedings, as well as demands,
claims and threatened litigation, that arise in the normal course of our business. For example, in August 2005, our subsidiary, SiRF Technology, Inc., filed a complaint against u-Nav Microelectronics, or u-Nav, in the United States District Court
for the Central District of California. The complaint alleges infringement by u-Nav of three patents assigned to SiRF Technology, Inc. and seeks both monetary damages and an injunction to prevent further infringement. In January 2006, u-Nav
counterclaimed by alleging that one of its patents was infringed by our subsidiary. The outcome of any litigation, including the lawsuit against u-Nav, is uncertain and either favorable or unfavorable outcomes could have a material impact.
Regardless of the outcome, litigation may be time-consuming and expensive and could divert managements attention from our business.