ESS Technology Licenses MPEG Encoder Technology From NEC Corporation
ESS to Integrate MPEG2 Encoder and Decoder Technology Into Single-Chip Solutions
FREMONT, Calif., May 14 /PRNewswire-FirstCall/ -- ESS Technology (Nasdaq: ESST - News), a leading provider of silicon solutions for digital video, digital home systems, and home networking solutions, announced today that it has licensed NEC Corporation's (Nasdaq: NIPNY; FTSE: 6701q.l; TSE: 6701) production-proven MPEG2 encoder technology. In this agreement, ESS will receive NEC's design database and associated software necessary to build home entertainment products.
ESS plans to integrate MPEG2 and MPEG4 encoder and decoder capability into single-chip solutions. The integrated encoder and decoder (Codec) product family will enhance the functionality of already popular consumer entertainment devices, such as DVD players and digital Set-Top Boxes (STBs), by adding digital video and audio recording functionality. These new products will support both Digital Video Recording (DVR) products with hard disk drives and recordable DVD disk applications. ESS expects to begin sampling its integrated Codec product family in early 2003.
According to an April 2002 report from Jon Peddie Research, the market for DVD recorders was 1.3 million units in 2001 and growing to over 50 million in 2005, a compound growth rate of 150 percent over the five-year period. DVR adoption is expected to expand in a number of directions simultaneously as digital video and audio recordability are integrated into set-top boxes, DVD players, and televisions.
Hidetoshi Kosaka, general manager, networking system LSI development division, NEC Corporation, stated, "We are extremely pleased with the expanded product development relationship between ESS Technology and NEC Corporation. Our two companies have worked closely on set-top-box products for rollout in the third quarter of 2002. We are excited by the high-growth opportunities for both companies in the expanding area of DVD recordability. We believe ESS has the technical capabilities, market channels, and reputation for quality that we think will be required to become a leader in the digital media market."
Patrick Ang, executive vice president and chief operating officer at ESS Technology stated, "The integration of the NEC encoder technology with our Vibratto(TM) DVD decoder technology makes it easy for our customers to significantly enhance the capabilities and value of their products at attractive price points. In addition, the integration of the MPEG2 encoder with ESS's decoder will help expand the use of ESS chips beyond traditional DVD players into the next-generation of consumer electronics applications. We think that this new MPEG encoder technology is an enabling technology for the future advanced consumer electronic products and will help ESS Technology continue to develop new Digital Home System (DHS(TM)) solutions and grow in the future."
About ESS Technology
ESS Technology, Inc., is a leading supplier of high-performance feature-rich chips for the rapidly expanding DVD and digital entertainment markets. The company is also a leading provider of solutions for applications in the growing consumer entertainment market. ESS solutions enable the emergence of digital home systems that deliver and manage entertainment and information in the home.
ESS, headquartered in Fremont, California, has R&D, sales, and technical support offices worldwide. ESS Technology's common stock is traded on the Nasdaq under the symbol ESST. ESS Technology's web site address is: esstech.com.
About NEC Corporation
NEC Corporation is one of the world's leading providers of Internet, broadband network, and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, through its three market-focused, in-house companies: NEC Solutions, NEC Networks, and NEC Electron Devices. NEC Corporation employs more than 140,000 people worldwide. The company had net sales of approximately $39 billion in the fiscal year ended March 2002. For additional information, please visit the NEC home page at: nec.com.
The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the impact of competitive products and pricing, the timely availability and acceptance of the Company's new products, the dependence on continued growth in demand for consumer multimedia products, and the other risks detailed from time to time in the SEC reports of ESS, including the reports on Form 10-K and Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.
NOTE: Vibratto and DHS are trademarks of ESS Technology.
SOURCE: ESS Technology, Inc. |
