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Technology Stocks : C-Cube
CUBE 37.15+2.4%10:48 AM EST

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To: John Rieman who wrote (27986)1/12/1998 5:03:00 PM
From: BillyG  Read Replies (1) of 50808
 
Divx chip..................

VLSI Data Security Chip Safeguards Divx Movie and Entertainment
Program Content

SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 12, 1998--

Encryption-Based Copy Protection Element of Divx Platform

Satisfies Studios and Content Providers

VLSI Technology, Inc. (NASDAQ:VLSI) will act as the sole design and manufacturing source for a custom data security
processor chip to be included as a standard element in Divx digital video disc players produced by hardware manufacturers
including Matsushita (Panasonic brands), Thomson (RCA, ProScan brands) and LG Zenith.

Independent test lab results show that the security features of the VLSI data security chip significantly limit piracy risks for
movies, videos and entertainment software. Disney, Paramount, Universal and DreamWorks have agreed to provide movie
titles for release on Divx discs.

"Divx will help expand the choice of movies available on DVD," commented Neil Shea, vice president and general manager of
the VLSI Internet and Secure Products Division. "We couldn't ask for a stronger endorsement of VLSI's data security
technology than to be selected as the security chip supplier for the Divx system. It really demonstrates how VLSI's strengths in
data security and consumer digital video technologies are converging to meet the needs of rapidly evolving markets."

Miles Circo, senior vice president and chief technical officer of Digital Video Express LP, the consortium driving the Divx
effort said: "We brought VLSI into the Divx project based on their track record in digital data security chip design and
manufacturing and their involvement in related technologies such as digital satellite video. The VLSI data security chip protects
viewing of content on the Divx disc, making it possible to bring more movies and other programming to the home
entertainment market with full digital quality."

VLSI Divx Data Security Chip

The VLSI Divx data security chip is a custom design created especially to meet the needs of the Divx system. The chip will
decode encrypted digital video signals at speeds high enough to maintain full digital video quality. Design details of the chip are
confidential, but systems integrating the VLSI Divx security chip fall within bounds of current United States Government data
security technology regulations. In addition to incorporating advanced encryption circuit design technology, the VLSI Divx
chip is the first chip to include technology from Dow Corning Corporation -- called ChipSeal(R) -- designed to prevent
breaking open the device to physically examine its circuitry and memory areas.

Divx System

The Divx system offers an easy and innovative way for consumers to access high-quality DVD content. Consumers will buy
Divx discs for a suggested retail price of less than $5.00 each. The price includes a two-day viewing period that begins when
the consumer first plays a movie in a Divx player. Consumers can easily purchase additional viewing periods after the initial
viewing period expires or convert a disk to unlimited viewing. Certain titles will be available for purchase in the store as
unlimited viewing discs. Each Divx DVD contains an encrypted digital video signal and playback control code processed by
the VLSI Divx security chip. Divx DVD machines will also be able to play regular non-encrypted DVDs, but Divx discs will
not work on non-Divx-enabled DVD players. For more information on the Divx system, see the consortium's homepage at
divx.com .

VLSI in the Data Security Market

VLSI began its involvement in the data security market supplying cryptography ICs to U.S. Government agencies and data
security-conscious private companies. With the rise of digital program content transmission over cable, satellite, broadcast and
fiberoptic links, VLSI now actively applies its data encryption and access control technologies to commercial and consumer
applications.

Key commercial applications for VLSI security chips include electronic commerce, cable modems, satellite data transmission,
voice and data communications and consumer video. Through its efforts, VLSI has emerged as the leading high-end data
security chip supplier, with its products delivering the maximum amount of data privacy and protection allowed under U.S. and
international law.

About VLSI Technology, Inc.

VLSI Technology, Inc. designs and manufactures System-Level Silicon(TM) integrated circuits based on its FSB(TM)
functional system blocks(TM) library. Targeting its offerings toward the communications, consumer digital entertainment and
computing markets, the company offers its customers advanced system-level integration capabilities. The company is based in
San Jose, with 1996 revenues from continuing operations of $669 million, and approximately 2,600 employees worldwide.
Visit VLSI's homepage at vlsi.com .

Note to Editors: Divx is a trademark of Digital Video Express, LP. ChipSeal is a registered trademark of Dow Corning
Corporation. All brand or product names are trademarks and/or registered trademarks of their respective owners.

CONTACT: VLSI Technology, Inc.
Martin Chorich, 408/922-5155
martin.chorich@sanjose.vlsi.com

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