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To: coopie who wrote (27755)1/8/1998 11:40:00 AM
From: BillyG   of 50808
 
Oak Technology Introduces First Single-Chip VideoCD Karaoke
Controller; Turnkey Solution Enables Lower-Cost VideoCD Technology
for Consumer Electronics Manufacturers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 8, 1998--

OTI-257 Enables Full-Featured VideoCD Applications; Brings Low Power Consumption, Small Form Factor to
Manufacturers, Resulting in Smaller Players

Oak Technology (NASDAQ:OAKT), a leading provider of multimedia semiconductor technology, today announced the
availability of the industry's first single-chip VideoCD karaoke controller, enabling full-featured VideoCD karaoke players to
reach the end user at a decidedly lower price. The OTI-257 is the first and only controller on the market to combine an
MPEG-1 audio/video decoder, audio DSP for karaoke functions, on-screen display and a TV encoder that supports
NTSC/PAL standards on a single chip. Available in a 100-pin PQFP package, the OTI-257 supports a small form-factor,
enabling the manufacturer to develop smaller VideoCD players requiring less power consumption. Unlike other solutions, the
OTI-257 includes a rich feature set on a highly integrated chip which allows manufacturers to differentiate their solutions from
those of competitors through superior audio and video signal quality. The OTI-257 is currently available for sampling, priced
at $15 in volumes of 10,000. OEMs and developers can also view Oak's web site for additional information on the OTI-257
and Oak's other VideoCD products at www.oaktech.com . Oak will demonstrate the OTI-257 in a VideoCD karaoke player
at Winter CES '98 show in Las Vegas, Nevada, Jan. 8-11, in booth 3619 at the Las Vegas Convention Center. VideoCD is
most popular in Asia, where it acts as an adjunct or substitute to conventional television. "The VideoCD player has become
the must-have home electronic appliance for the Asian marketplace; for Asian consumers, VideoCD is as vital as the VCR is
to Americans," said Dr. Wen Hsu, Director of Oak's Imaging Business Unit. "The OTI-257's high level of integration is the
industry's most comprehensive solution and it enables manufacturers to bring the lowest cost VideoCD players to market,
expanding the technology to more consumers." The OTI-257's single chip design combines an integrated 32-bit multimedia
RISC architecture, a multi-standard TV encoder with composite and S-video output, full-screen 64-color on-screen display
(OSD) and full-featured multilingual karaoke playback function with integrated DSP supporting high-fidelity sound effects. The
combination of these key functions and features enables the OEM to deliver the lowest cost VideoCD karaoke player without
sacrificing quality and feature-richness. Additionally, the OTI-257 allows the OEM to highly differentiate its solutions within its
product line and from other solutions in the market. The OTI-257's 64-color OSD provides increased color variation, rather
than the usual black and white display for messages or instructions, while the full-screen playback offers a higher-end
look-and-feel than many solutions on the market. The OTI-257 also supports "wide sound" for a realistic movie experience, a
variety of sound effects for customized environments, and karaoke key controls to match the singer's voice with the proper
vocal key. Due to the highly integrated design of the OTI-257, power consumption is kept lower than a non-integrated
component solution.

Oak Continues Video CD Tradition

Oak's OTI-257 is the third generation of the company's MPEG-1 product line, building on the strong VideoCD tradition
launched by the company's OTI-207 highly integrated MPEG-1 decompression processor and the OTI-201, Oak's first
MPEG-1 decoder. The OTI-257 conforms to VideoCD 2.0 standards, enabling manufacturers to deliver fully compliant
VideoCD solutions at the lowest prices.

The foregoing statements may consist of forward-looking statements that involve risks and uncertainties. These statements may
differ materially from actual future events or results. Factors that could cause actual outcome to differ materially from those set
forth include, without limitation, the economic conditions in the Asian market, the rate of adoption of new technology, market
acceptance of the product, competitive pricing actions and marketing programs, among others. For a discussion of such risks,
see the company's most recent SEC form 10-K and 10-Q.

About Oak Technology

Founded in 1987, Oak Technology Inc. designs, develops and markets high-performance multimedia semiconductors and
related software to original equipment manufacturers worldwide who serve the PC, consumer electronics, and digital office
equipment markets. Oak has a software design center in Boca Raton, Fla.; a mixed signal design center in Austin, Texas; and
subsidiaries in Japan (Oak Technology K.K.), Taiwan (Oak Technology, Taiwan), and Andover, Mass. (Pixel Magic Inc.).
The company completed its initial public offering in February 1995. Additional information about Oak Technology and its
products can be found on the World Wide Web at www.oaktech.com .

Note to Editors: Oak Technology and the Oak logo are registered trademarks of Oak Technology Inc. Pixel Magic is a
trademark of Oak Technology. All other product names or company names are mentioned for identification purposes only,
and may be trademarks of their respective owners.

CONTACT: McGrath/Power Public Relations
Carolyn Rohrer/Jonathan Bloom, 408/727-0351
carolyn_rohrer@mcgrathpowerpr.com
jonathan_bloom@mcgrathpowerpr.com
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