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Technology Stocks : C-Cube
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To: Scotsman who wrote (37319)11/18/1998 10:34:00 AM
From: BillyG   of 50808
 
Sichuan New Tech Digital Equipment Corp. of China to Use LSI Logic
DVD Decoder Chip in New DVD Player Family

Provincial Government Backs NTC in Developing Local DVD Expertise

MILPITAS, Calif., Nov. 18 /PRNewswire/ -- Sichuan New Tech Digital Equipment Corp. (NTC), of Shendu, China,
has selected LSI Logic's L64020 DVD Decoder system-on-a-chip as the basis for a new family of DVD player systems
it plans to bring to market in the fourth quarter of this year.

The L64020 DVD Decoder technology will enable NTC to develop a low-cost, high-performance DVD player while
maintaining compatibility with China's huge installed base of players which use the older, lower-performance VCD (video
compact disk) standard that became prevalent in China over the last decade.

"This OEM agreement, along with the financial backing it has obtained from the Szechuan provincial government, will
enable NTC to build solid domestic engineering and manufacturing expertise in the DVD arena," said Alain Bismuth, LSI
Logic's director of Consumer DVD Products. "This will result in both a boost for the consumer electronics industry
within China and the creation of exportable products based on the emerging worldwide DVD technology standard."

The Chinese VCD player market, which represented approximately 15 million units in 1997, is expected to grow to
almost 20 million units this year. With strong support from the Chinese government, major VCD manufacturers are
planning to complete the transition from VCD to the new DVD standard by the year 2000, with most planning to start
volume production in time for the 1998 Christmas and 1999 Chinese New Year seasons.

The OEM agreement occurs in conjunction with the opening last summer of LSI Logic's first office in Beijing, China. "As
one of the first beneficiaries of LSI Logic local technical support in China, NTC will have an edge on ramping up
production of its DVD players and getting units to market quickly," Bismuth added.

Mr. Chen Shi Ping, President of Sichuan New Tech Digital Equipment Co. commented that he was pleased to see a
successful cooperation between NTC and LSI Logic (NYSE: LSI) in the area of DVD players, and that he hoped that
this current collaboration will help strengthen the ties between the two companies in the future.

Mr. Chen pointed out that NTC was speeding up its final test and validation process in order to ensure volume
production before the end of this year.

The LSI Logic L64020 DVD Decoder, introduced in October 1996, provides the industry's highest-quality trick-play
features, including picture search, freeze frame, frame advance and reverse, variable-speed, and synchronized
fast-forward of video and audio, and zoom. The chip eliminates "fade to black" in search functions and video "tearing" in
fast-forward searches. System designers can customize these trick-play modes and the player's user interface to address
specific market requirements. Fully compliant with industry standards, the L64020 also features the industry's lowest
available power consumption.

The L64020 is supported by a comprehensive range of DVD player reference design and manufacturing kit, designed to
speed up OEMs entry into the DVD player market, by providing them with, ready-to-production solutions which include
all the hardware and system software necessary to build highly cost effective DVD/VCD players.

About LSI Logic

LSI Logic Corporation, the System on a Chip Company(R), is a leading supplier of custom high-performance
semiconductors, with operations worldwide. The company enables customers to build complete systems on a single chip
with its CoreWare(R) design program, thereby increasing performance, lowering system costs and accelerating time to
market. LSI Logic develops application-optimized products in partnership with trendsetting customers, and operates
leading-edge, high-volume manufacturing facilities to produce submicron chips. LSI Logic is headquartered at 1551
McCarthy Boulevard, Milpitas, California 95035, 408-433-8000, www.lsilogic.com.

Reader inquiries should be directed to 800-574-4286 within the US and Canada, or 32-11-300351 within Europe, or
408-433-7700 for all other countries. Ask for Dept. CPNR14.

NOTE: The LSI Logic logo design, CoreWare and The System on a Chip Company are registered trademarks of LSI
Logic Corporation. All other brand or product names may be trademarks or registered trademarks of their respective
companies.

SOURCE LSI Logic Corporation

/NOTES TO EDITOR:

1. Copies of LSI Logic news releases can be obtained through FAXLOGIC at
800-457-4286.

2. Please do not assign a Reader Service number to this release./

/CONTACT: Alain Bismuth of LSI Logic, 408-954-4920, or bismuth@lsil.com;
or Matthew Quint, or Janis Ulevich, both of Ulevich & Orrange, Inc.,
650-329-1590, or info@u-o.com, for LSI Logic/

/Company News On-Call: prnewswire.com or fax,
800-758-5804, ext. 516675/

/Web site: lsilogic.com

(LSI)
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