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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)
SIII 0.00010000.0%May 12 5:00 PM EST

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To: Chris Tomas who wrote (13068)6/7/1999 8:53:00 AM
From: John Nasser  Read Replies (1) of 14577
 
S3 Revolutionizes PC Graphics With Industry's
First "Desktop-Equivalent" Mobile 3D
Accelerator

.18 Micron Mobile Savage Delivers 3X the 3D Performance of Nearest Competitor and
16MB Memory Support

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 7, 1999-- Bringing true ''desktop-equivalent'' graphics
capabilities to notebook PCs for the first time, S3® Incorporated (NASDAQ: SIII - news) today announced the
Savage/MX(TM) and Savage/IX(TM) 3D mobile accelerators.

With industry-first 16MB integrated memory support, .18 micron design, blazing 3D speed and stunning S3TC image
quality, S3's mobile Savage radically defies the existing notion that PC users must sacrifice graphics performance for
mobility.

''Redesigning the Savage architecture to work within a mobile environment, without sacrificing performance, is a major
milestone in S3's effort to drive the PC graphics industry in new directions,'' said Dr. Andrew Wolfe, chief technology
officer for S3 Incorporated. ''We expect the mobile Savage family to not only move S3 forward, but to move PC
computing forward as well -- delivering no-compromise graphics and no-compromise mobility for the first time ever.''

''Our research indicates there is a rapid expansion in the deployment of 3D controllers in portable computers,'' said Dr.
Jon Peddie, president of Jon Peddie Associates (Tiburon, CA) the leading market research firm tracking digital media..
In Q1'98, we saw 3D represent over 20 percent of the market, and 3D graphics performance on today's notebooks is
far from adequate. S3's mobile Savage will dramatically change that by leapfrogging many of the existing notebook
graphics technology.''

No-Compromise Graphics

S3's mobile Savage delivers ''no-compromise'' graphics with 3X faster 3D performance and stunning image quality,
16MB memory support, complete multi-monitor technology, lightning-fast 2D acceleration and hardware accelerated
DVD playback.

3X Faster 3D Performance and Stunning Image Quality

Based on S3's highly acclaimed Savage desktop architecture, mobile Savage delivers industry-first 3D graphics
technology including:

32-Bit True Color Rendering - Mobile Savage's 32-bit color technology expands on yesterday's 16-bit color
technology to deliver richer more vibrant color without color-banding or dithering artifacts.
High 3D Fill Rate - With its single-cycle trilinear 3D architecture, mobile Savage delivers a pedal-to-the-metal
100 million trilinear-filtered pixels per second 3D fill rate, translating to 60 frames per second (fps) performance
in most 3D applications including Quake II.
S3 Texture Compression (S3TC) - Delivering a 6X increase in image quality and adopted for use in many of this
year's hottest 3D titles, such as Unreal Tournament, Quake III and others, S3TC is a ''must-have'' 3D graphics
technology in 1999.
Triangle Set-Up Engine - Integrating a 5 million triangle per second set-up engine to off-load data intensive
calculations from the host CPU, mobile Savage enables the usage of more detailed 3D objects and
environments, without taxing available system resources.
Complete AGP 2X - Building on S3's desktop AGP technology, mobile Savage provides a complete AGP 2X
implementation with sidebands to deliver higher 3D scene complexity at higher frame rates.

Based on this industry-first 3D technology, S3's mobile Savage crushes the competition with performance marks that
are 3X as high as its nearest ''would-be'' competitor. For a benchmarking analysis of mobile Savage's dominance of
the 3D-notebook graphics market, go to: www.S3.com/mobilesavage/compete.htm.

16MB Memory Support

While today's notebook graphics solutions only support up to 4MB or, in one case, 8MB configurations, S3's mobile
Savage delivers industry-first 16MB memory support in both discrete and integrated packages. A leap forward in
notebook graphics technology, 16MB support allows end-users to gain higher resolution, true color support (up to
1600x1200x32bpp), higher Multi-Monitor mode support (up to 1600x1200x16bpp) and better 3D performance.

Complete Multi-Monitor Technology

Based on S3's DuoView+(TM) technology, mobile Savage allows for the independent display of different images
simultaneously on multiple monitors, providing users with enhanced presentation capabilities and increasing productivity.
In addition, the DuoView+ technology provides greater display flexibility, supporting the simultaneous usage of up to 5
displays (LCD+LCD+CRT+TV+TV). A 3rd generation design, mobile Savage's DuoView+ technology is compatible
with standardized multi-monitor support in Microsoft's latest Windows operating systems.

Hardware Accelerated DVD Playback

Building on S3's proven video strength, mobile Savage is an optimal hardware accelerated DVD solution with a 2nd
generation motion compensation engine for lower CPU utilization, subpicture alpha blending and highlights for
consumer-level DVD functionality and integrated Macrovision Copy Protection as required for DVD playback on a
TV. In addition to this rich feature set, S3 has worked closely with numerous software DVD partners such as
Mediamatics, Quadrant International, Xing, Cyberlink and Zoran -- as well as being a Microsoft Hardware Video
Acceleration development partner -- to ensure industry-wide compatibility and optimized support for mobile Savage's
DVD solution.

No Compromise Mobility

Tailoring its competition-crushing graphics performance to excel in a mobile environment, S3's mobile Savage delivers
ultimate design flexibility, low power and a highly integrated architecture.

Ultimate Design Flexibility

Offering both the Savage/MX discrete memory design as well as the Savage/IX Multi Chip Module (MCM)-based
integrated memory design, mobile Savage is an optimal graphics solution for any notebook form factor. Additionally,
based on the software and hardware compatibility of the Savage/MX and Savage/IX designs, mobile Savage provides
notebook manufacturers with a quick and easy upgrade path for both discrete and integrated designs.

''Mobile Savage is taking the PC notebook industry by storm,'' said Rick Bergman, vice president and general
manager, Mobile Products Group, S3 Incorporated. ''Whether it's a Desktop Replacement design or a Thin & Light
design, customer demand for mobile Savage is high with numerous top-tier PC manufacturers already redesigning their
NeoMagic or ATI-based notebook layouts to use either S3's Savage/MX or Savage/IX accelerators.''

Low Power

Based on the graphics industry's first .18 micron design as well as optimal power management technology, S3's mobile
Savage runs at 1.8 core voltage and dissipates less than 1.5 watts in full 3D operation. A testament to S3's engineering
strengths, mobile Savage's desktop-equivalent performance is delivered well within notebook power constraints.

Highly Integrated Architecture

Beyond requiring low power, notebook designs also demand space-conscious solutions. Easily meeting this challenge,
S3's mobile Savage is a highly integrated architecture, combining all the elements of a typical desktop graphics add-in
board into a single-chip mobile package. By integrating the memory, TV-out, hardware DVD with copy protection and
LVDS technology, the mobile Savage design saves power, space and cost, while also greatly reducing Electro
Magnetic Interference (EMI).

Pricing and Availability

Sampling since January, Savage/MX and Savage/IX are scheduled to be in mass production by the end of June and
mobile Savage-based notebooks are expected to be on retail shelves beginning in September. Savage/MX is priced at
$42 (USD), while Savage/IX is priced at $49 (USD) for a 4MB version, $56 (USD) for an 8MB version and $68
(USD) for a 16MB version in quantities of 1,000 units.

For more detailed information regarding S3's Savage/MX and Savage/IX technology, including product photos, screen
shots, white papers, data sheets, and a competitive analysis, go to S3's website at www.S3.com and click on the
mobile Savage logo on the front page.

About S3 Incorporated

With the world's largest installed base of graphics and video accelerators, S3 Incorporated has established itself as a
market leader in technology excellence, core business strengths, strategic partnerships and worldwide reach. Building
on these strengths, S3 is committed to delivering targeted products for the Personal Computer, Computing Integration
and Consumer Appliance Markets

Except for the historical information contained herein, the matters set forth in this press release, such as statements
relating to the expected availability of mobile Savage, mobile Savage's competitive advantages, and the availability of
products incorporating mobile Savage, are forward-looking statements that are subject to risk and uncertainties that
may cause actual results to differ materially, including the impact of competitive products and pricing and of alternative
technological advances, design, competitive product and other factors that may affect S3's current and potential
customers' decisions to use mobile Savage, the ability of S3's foundries to manufacture mobile Savage products in a
timely manner in high volumes and with acceptable yields, customers' product marketing timelines, market acceptance
of S3's and its customers' new products, and other risks detailed from time to time in S3's SEC reports, including its
Quarterly Report on Form 10-Q for the three months ended March 31, 1999. These forward-looking statements
speak only as of the date hereof. S3 disclaims any intent or obligation to update these forward-looking statements. S3
is a registered trademark of S3 Incorporated. The S3 corporate logo, DuoView+, Savage, Savage/MX and Savage/IX
are trademarks of S3 Incorporated. Other marks referenced herein are the property of their respective owners.
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