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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: stock talk who started this subject9/12/2000 9:24:52 AM
From: Jim Muskett  Read Replies (1) of 14577
 
Finally, news about the PSA 120 .... it's SHIPPING.

VANCOUVER, Wash.--(BUSINESS WIRE)--Sept. 12, 2000--

All-New, Digital Audio Player for Sports and Fitness, Preloaded
With Music From Snoop Dogg and the Newest
Single "You're an Ocean" by FastBall

Nike, Inc. (NYSE:NKE.N) and S3(R)'s Rio Division(TM) (Nasdaq:SIII.O)
announced today they have shipped the Nike PSA/Play 120, a portable,
ergonomically designed digital audio player geared toward fitness
enthusiasts.
"This player is perfect for the sports-minded consumer who wants a
quality, skip-free music experience while working out," said Mike
Reed, vice president of marketing with S3's Rio Division. "This player
is another great example of how we are carefully tailoring the device
to the desires of consumers."
"Nike has stuck a wire in sports with the PSA/Play," said Clare
Hamill, vice president of Nike Equipment. "This is what athletes
really want -- a small, portable, skip-free player to wear or carry
every time they exercise or train."

Nike PSA/Play 120, featuring Rio Audio

This player is specifically designed to meet the needs of the
athletic community and includes the following features:
-0-
*T
-- Ergonomic Design -- Rounded edges make it comfortable to store
in your pocket or wear in the included arm band.

-- Sightless Control -- Raised buttons for fast forward, rewind,
play and stop as well as volume control that is easily
recognized by touch make the PSA/Play 120 easy to use without
looking at the player.

-- Rio Audio -- Built on S3's Rio Audio technology, the PSA/Play
120 will provide consumers with a digital music experience
consistent with the rest of S3's market-leading Rio players.

-- Embedded, Expandable Memory -- 64 MB of built-in memory will
provide 120 minutes of Rio Audio-quality digital music. A
memory expansion slot is available on the back of the player
to boost music storage to 210 minutes.

-- Remote Control -- A fully functional, wearable remote control
with a dot matrix LCD display improves the player's usability
while streamlining it for comfort.

-- Music Format Support -- The Nike PSA/Play 120 will support
Windows Media (WMA) and MP3, featuring an upgradeable
processor to support emerging formats as they are available.
*T
Platinum Winning Artists Featured on Nike PSA/Play 120

S3 continues its relationship with recording labels by offering
top tier content on the Nike PSA/Play 120. Each player is preloaded
with several tracks from TVT Records: "Got Beef" by Snoop Dogg & The
Eastsidaz, "Waffle" by Sevendust, "I Preach to Party" by Pills and
"I'm the Man Who Murdered Love" by XTC. S3 also partnered with
Hollywood Records in order to showcase "You're An Ocean," the newest
single from FastBall, on the Nike PSA/Play 120.

Nike PSA Play/60 Ships on Heels of 120

The newest member of the family of players, also the result of a
collaboration between Nike and S3, called the Nike PSA Play 1/860 will be
available soon after the release of the Nike PSA/Play 120. This
entry-level sports and fitness player comes with 32 MB of memory for
60 minutes of music.
The Nike PSA/Play 60 will feature two artists from DreamWorks
Records, "Last Resort" by Papa Roach and "Illumination" by Rollins
Band as well as two artists from Sire Records, "Bullet in a Gun" by
Paul Oakenfold and "Wake Up" by Grand Theft Audio.

Pricing and Availability

The Nike PSA/Play 120 shipped to North American retail outlets
with a suggested retail price of $299.95. The Nike PSA/Play 60 has a
suggested retail price of $199.95. Each package ships with all
necessary software and cables, belt clip and arm band, premium
headphones, plus player and remote.

Rio Audio Branding Program

The Nike agreement is a substantial element of S3's Rio Audio
branding program. The program allows a select group of consumer
product-focused companies to market digital audio devices that appeal
to various lifestyles and market segments, while still offering a
consistent music experience. Based on extensive testing and user
feedback, key elements of the Rio music experience include familiar
user control and interface, edgy product style, superior sound
quality, access to music industry-supported formats, and compatibility
with home-networked audio and software on the PC and Mac. Consumers
who purchase these co-branded devices will enjoy a consistent
experience through a variety of products.

About S3's Rio Division

Following its acquisition of Diamond Multimedia and the transfer
of its graphics chip assets to a joint venture company, S3 has been
re-launched as a digital media company focused on creating products
and partnerships that help build the digital home. Combining
significant financial assets with a strong technology portfolio, which
includes the Rio family of digital audio players and the HomeFree
series of home networking solutions, S3 is uniquely positioned to
capitalize on high growth opportunities in the rapidly converging
Internet and consumer device markets. For more information on S3,
contact Tracy Perry, Investor Relations, 408/588-8086, ir@s3.com.
Companies interested in partnering with S3 may contact Kerry
Sobol, Director Global Channel Development, S3's Rio Division,
360/604-1456 or kerrys@s3.com.
Those interested in music content partnerships should contact
Sherman Tam, Market Development Manager, S3's Rio Division,
360/604-1461 or shermant@s3.com.

About Nike

Nike, Inc. headquartered in Beaverton, OR, markets its products in
more than 100 countries and is the world's leading sports and fitness
company.
Nike is also diversifying their market base with the creation of
nike/techlab -- where athlete-inspired innovation and technology come
together to create cutting-edge tools and apparel for the fitness
consumer. Nike has created a line of clothing that accommodates the
players, which will be available exclusively through nike.com for the
holidays.
Further information about Nike, Inc. can be obtained at
www.nikebiz.com.

Except for historical information contained herein, the matters
set forth in this press release are forward-looking statements that
are subject to risk and uncertainties, including the impact of
competitive products and pricing and of alternative technological
advances, the ability of S3 to produce and move product into its
distribution channels and the cooperation of it distribution channel
partners, the ability of S3 to secure deals with record labels, and
other risks detailed from time to time in S3's SEC reports, including
its quarterly report on Form 10-Q for the quarter ended June 30, 2000.
S3 is a registered trademark of S3 Incorporated. The S3 corporate
logo, Diamond Multimedia and HomeFree are trademarks of S3
Incorporated. Rio is a trademark of RioPort.com, Inc. and is used by
S3 under license from RioPort.com, Inc. Other marks referenced herein
are the property of their respective owners.

NOTE TO EDITORS: Throughout this release the forward bracket
symbol in the product name PSA/Play, PSA Play/60 and nike/techlab has
been changed to a "/", since the forward bracket causes transmission
problems on many systems.

--30--BP/se*

CONTACT: For Nike and S3
Porter Novelli Convergence Group
Nancy Sonju, 206/727-2880
nancy.sonju@pnicg.com
or
Nike USA Communications
Claudine Leith, 503/671-3028
claudine.leith@nike.com

KEYWORD: OREGON WASHINGTON
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS MUSIC HARDWARE SPORTS
MARKETING AGREEMENTS
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