SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 17, 1998--S3 Inc.
(Nasdaq:SIII) today announced a long-term agreement with Intel Corp.
(Nasdaq:INTC) which includes a 10-year cross-license agreement for all S3
and Intel patents for development of certain semiconductor products, a bus
license for current and future Intel general purpose processors, and the
selection of S3 as an Intel AGP 4X validation partner.
S3 also announced that Intel is to purchase warrants to buy S3 shares under
undisclosed terms.
"Through this multi-faceted agreement with Intel and its 1999 product
roadmap, S3 intends to re-establish its position as the number one supplier
to high-volume OEMs and add-in-card manufacturers," said Ken Potashner,
President and CEO of S3.
"The company plans to uniquely support these customers through its IP
strength, strong product line-up, and high-volume manufacturing capabilities.
S3 also plans to pursue various levels of integration in response to customer
demands for increased functionality, added differentiators and high-volume
cost competitiveness." While specific terms of the agreement are not being
disclosed, Potashner added, "Our agreement with Intel is another milestone
in S3's long-term strategy to regain its leadership position in graphics and
penetrate other new markets through integration. By bringing more value to
our customers in terms of technology, support and industry relationships, we
believe we can capture a significant amount of OEM and AIC design wins in
1999 and beyond."
S3's Plan for Integration
S3 is currently the world's second largest supplier of single-chip 2D, 3D, and
video accelerators for the desktop and mobile markets. Through this newly
acquired technology base as well as its industry-first .18 micron process
capability announced last week, S3 plans to broaden its product offering to
incorporate additional functionality onto its accelerator chips.
The types of technologies that will be integrated will be driven by OEM and
AIC requirements and are scheduled to be unveiled over the next 12 months.
In addition to the graphics space, S3 also intends to pursue new markets
that represent substantial growth opportunities for the company. Targeted
products in these new markets may include set-top boxes, WinCE
machines, consumer appliances, industrial point-of-sale systems, and
automotive GPS systems, among others.
Intel Selects S3 as an AGP 4X Validation Partner
As an Intel AGP 4X validation partner, S3 is well positioned to be
first-to-market with AGP 4X-compliant products in an industry that is rapidly
transitioning from AGP 2X to AGP 4X. Based on data from Mercury
Research, a leading research firm located in Scottsdale, Ariz., AGP 4X is
expected to capture more than 40 percent of the entire PC market in the
second half of 1999.
According to Dean McCarron, principal with Mercury Research, "We see the
PC market rapidly transitioning to AGP 4X in the second half of 1999. Similar
to the recent transition from PCI to AGP 2X, we expect key system
manufacturers to migrate to AGP 4X early as a differentiator, leading the
industry and driving volume AGP 4X shipments."
About S3 Inc.
S3 Inc., founded in 1989 with headquarters in Santa Clara, is a premier
supplier of multimedia acceleration hardware and its associated software. S3
is committed to applying its expertise in 2D graphics, 3D graphics, and video
to create innovative and affordable products for the home, desktop and mobile
markets.
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 the company's foundries to
manufacture any newly-developed products in a timely manner, market
acceptance of the company's and its customers' new products, customers'
product marketing timelines, and other risks detailed from time to time in
S3's SEC reports, including its Quarterly Report on Form 10Q for the quarter
ended June 30, 1998. |
