Warning Issued to Shareholders of Silicon Storage Technology, Inc.

On January 20, 2005, the law firm of Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") (http://www.lerachlaw.com/cases/siliconstorage/) filed a complaint on behalf
of purchasers of Silicon Storage Technology, Inc. ("Silicon Storage")
(Nasdaq: SSTI). The complaint alleges serious claims associated with the
company's accounting and false statements and follows a lengthy investigation
conducted by Lerach Coughlin. Since that time, Schatz & Nobel has issued a
press release claiming to offer "information" about joining the suit. Be
advised that this firm has not even filed a complaint. Rather, the press
release appears to be an advertisement designed to solicit clients so that the
firm can participate in this case.

Lerach Coughlin, a 140-lawyer firm with offices in San Diego, San
Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Houston,
Philadelphia and Seattle, is active in major litigations pending in federal
and state courts throughout the United States and has taken a leading role in
many important actions on behalf of defrauded investors, consumers, and
companies, as well as victims of human rights violations. Lerach Coughlin
lawyers have been responsible for more than $20 billion in aggregate
recoveries. The Lerach Coughlin Web site (http://www.lerachlaw.com) has more
information about the firm.

If you purchased Silicon Storage common stock between March 30, 2004 and
December 20, 2004, and wish to serve as lead plaintiff, you must move the
Court no later than 60 days from today. If you wish to discuss this action or
have any questions concerning this notice or your rights or interests, please
contact plaintiff's counsel, William Lerach or Darren Robbins of Lerach
Coughlin at 800/449-4900 or 619/231-1058, or via e-mail at wsl@lerachlaw.com.
If you are a member of this class, you can view a copy of the complaint as
filed or join this class action online at
http://www.lerachlaw.com/cases/siliconstorage/. Any member of the purported
class may move the Court to serve as lead plaintiff through counsel of their
choice, or may choose to do nothing and remain an absent class member.