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Technology Stocks : C-Cube
CUBE 36.94-0.8%Dec 1 3:59 PM EST

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To: Ed's Head who wrote (8832)1/20/1997 8:37:00 AM
From: T. L.   of 50808
 
Monday January 20 8:19 AM EDT

Number One Chinese Television Manufacturer Selects C-Cube
for VideoCD Entree and Joins C-Cube Branding Program

C-Cube Expands List of Strategic Partners for VideoCD Players in Asia with Powerhouse Chinese Brand Changhong

MILPITAS, Calif.--(BUSINESS WIRE)--Jan. 20, 1997--C-Cube Microsystems Inc. (NASDAQ:CUBE) announced today that the leading Chinese TV manufacturer Changhong will use decoder technology from C-Cube to build and market solutions for Changhong's new line of VideoCD products. This powerful combination brings together two recognized global leaders from the digital video and consumer electronics
industries. In addition, Changhong will brand their C-Cube-based VideoCD players with the C-Cube seal of top quality. Changhong joins ten other leading Asian consumer electronics manufacturers, including Japan's Aiwa Co. Ltd., Korea's Hyundai, and Idall, one of China's largest VideoCD suppliers, that have already licensed the C-Cube brand for their VideoCD players.

C-Cube's technology provides the highest level of integration and most advanced feature-set available anywhere in the world for the VideoCD player market. It supports any and all VideoCD titles, and its
advanced ClearView technology ensures the very best VideoCD viewing experience. The C-Cube brand on VideoCD players by Changhong ensures consumers the highest level of quality, reliability and
interoperability.

"As the top TV manufacturer in China, the Chinese people have come to rely on us for the highest quality products, so we are very pleased to join with C-Cube," said Zhao Zhi Jian, managing director of the Digital A/V Division. "We know the partnership of the number-one TV manufacturer with the number one supplier of VideoCD solutions will be an unbeatable brand combination to provide the very best quality to our customers. After a year of technical evaluation, we have concluded that C-Cube can provide us with the world's most advanced VideoCD solution."

"The C-Cube quality branding campaign continues to drive consumer demand for our strategic partners products," said Alex Daly, vice president of marketing for C-Cube Microsystems. "We are delighted to see Changhong select and leverage the C-Cube brand to provide consumers a mark of quality they can trust."

Changhong is the largest TV manufacturer in China. Located in Mianyang in the Sichuan province, it employs 18,000 people with 1996 revenues expected to reach 12.5 billion yuan (US $1.4 billion) and annual
production of 4.8 million color TV sets. Revenue has grown at a rate of 50% for 6 consecutive years since 1988.

About C-Cube Microsystems

C-Cube is the leading provider of digital video semiconductor solutions which implement international standards for digital video, including MPEG 1 and MPEG 2. C-Cube's Emmy Award-winning encoder chips
form the heart of digital video networks worldwide. DiviCom Inc. is a wholly owned subsidiary of C-Cube Microsystems and is a leading developer of digital video networking systems for broadcast communications applications.

C-Cube Microsystems is headquartered in Milpitas and has offices in North America, Europe and Asia. The company employs 645 people worldwide. Its stock is traded on the NASDAQ National Market System under the symbol CUBE. C-Cube can be reached at 408/944-6300 or on the World Wide Web at c-cube.com .

Note to Editors: The C-Cube logo is a registered trademark of C-Cube Microsystems Inc. C-Cube is a trademark of C-Cube Microsystems Inc.

Additional information for Editors:

C-Cube's VideoCD Decoder Family: ClearView

C-Cube decoders using ClearView technology are guaranteed to deliver the very best VideoCD picture quality to the end-user, even on VideoCD discs that are dirty, scratched or otherwise flawed. Over time,
VideoCD discs tend to develop scratches and accumulate dust and fingerprints. These can result in picture tearing and blocking as well as other video artifacting. C-Cube has invested over 20 man-years in ClearView technology and in VideoCD compatibility testing with a dedicated team and over 1500 "distressed" discs in their extensive VideoCD library. In addition, ClearView utilizes a special technique of producing two distinct frames for each decoded frame using an advanced interpolation filter, thereby reducing flicker and raster
artifacts on interlaced displays.

The great majority of VideoCD titles worldwide have been authored using C-Cube's Emmy Award-winning encoder products, while most players are based on C-Cube's video decoders. Makers that have licensed
the C-Cube brand must pass rigorous branding tests designed to ensure superior performance and design.

C-Cube launched an extensive consumer branding program for China in May of 1996 to spur consumer demand for its high-quality digital video products, and has extended branding efforts through a successful
promotional campaign.

The C-Cube brand appears on Video CD players as a badge affixed to the front panel, and may also appear on VideoCD media and media packaging. C-Cube has been promoting the C-Cube brand in China through
television and newspaper advertising, publicity campaigns and point-of-sale displays.

In May of 1996, C-Cube announced branding agreements for VideoCD players in China with many of China's largest consumer electronics companies, including Idall, Malata, SAST, Thakral, Jin Jiang, and
Panda. In August, Aiwa Co. Ltd., one of the world's leading consumer electronics manufacturers, signed a licensing agreement to brand its C-Cube-based VideoCD players in Asia. And in December, Hyundai, a
leading consumer electronics company based in Seoul, Korea, joined the branding program.

In addition to the strategic branding partners, C-Cube leads the market with VideoCD customer companies in Asia including well-known international and Chinese brands such as Sony, Samsung, JVC, Panasonic, Marantz, Philips, Wuhan Stone, Gynco, Solive, Wyan, Changling, and Fujian Star.

CONTACT: C-Cube Microsystems
Mary Sharpless-Giani, 408/944-8628
mary.giani@c-cube.com
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