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 Today's News On The Net - Business Wire's full file on the Internet                           with Hyperlinks to your home page.                           URL: businesswire.com
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