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Wednesday April 1, 6:36 pm Eastern Time
Company Press Release
Faroudja Inc. and S3 Agree to Drop PC Exclusivity
SUNNYVALE, Calif.--(BUSINESS WIRE)--April 1, 1998---Faroudja Inc. (Nasdaq
NMS:FDJA - news) Wednesday announced that the exclusivity provisions of the
company's license with S3 Inc. [Nasdaq:SIII - news] will end at the close of the first
quarter of this year.
Last year, Faroudja signed a licensing agreement with S3 which gave S3 the right to
develop integrated circuits incorporating Faroudja's video processing technology and
S3's graphics accelerators for use in personal computers (PCs). The license had been
exclusive for certain technologies for certain markets, provided that minimum royalty
payments were made.
S3 has informed the company that it will not make the license payments necessary to
maintain its exclusive license rights with respect to any periods after March 31, 1998.
License fees from S3 will represent approximately 23 percent of the company's
revenues for the first quarter of 1998.
''With the release of the exclusivity provision with S3, Faroudja may now license
additional companies,'' stated Michael Moone, president and chief executive officer.
''Our strategy now encompasses the license of Faroudja technology to other companies
in the PC market, as well as the sale of chipsets to PC manufacturers for use in
multimedia PCs and PC/TV convergence products, and the sale of chipsets to PC
board manufacturers.''
Faroudja is recognized around the world for its superior video processing technology;
the company holds more than 50 patents. Faroudja's growing number of consumer and
commercial products is designed to bring HDTV-quality images to the digital broadcast,
display, PC/TV convergence and home theater markets.
Faroudja products improve picture quality dramatically, by increasing the number of
display lines reproduced on screen, by increasing displayed bandwidth and by
correcting noise, color and motion errors.
Except for historical information contained herein, the matters set forth in this news
release, such as statements relating to the company's ability to drive technological
developments and the acceptance and timing of product introductions, are
forward-looking statements that are subject to risks and uncertainties, including timely
development and acceptance of new products, the impact of competitive products and
pricing, the timely development and release of products by suppliers, and other risks set
forth under the caption, ''Factors Affecting Future Operating Results'' in the company's
annual report on Form 10-K for the year ended Dec. 31, 1997 filed with the Securities
and Exchange Commission.
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Contact:
Faroudja Inc., Sunnyvale
Michael Hoberg or Kenneth Boschwitz, 408/735-1492
or
OPUS Group
Mary McCarthy, 310/440-8600
mmmcc@pacbell.net
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More Quotes
and News: Faroudja, Inc (Nasdaq:FDJA - news)
S3 Inc (Nasdaq:SIII - news)
Related News Categories: computers, internet, retail, semiconductors
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