SANTA CLARA, Calif.--(BUSINESS WIRE)--March 10, 1997--National
Semiconductor Corporation today announced it has signed an agreement
to acquire Mediamatics, Inc., a Fremont, California company that is
the world's largest supplier of MPEG audio/video decoders to the
personal computer market. The acquisition will accelerate National's
entry into the rapidly growing world of home entertainment appliances
based on new technologies such as digital versatile disc (DVD)-based
video players and digital video broadcasting (DVB) set-top boxes.
Under the terms of the agreement National Semiconductor will
acquire 100 percent of Mediamatics' stock in exchange for
approximately 3.4 million shares of National Semiconductor common
stock. The acquisition has been approved by National's Board of
Directors and is expected to close before the end of March 1997.
Mediamatics, founded in 1993, provides leadership software and
semiconductor products enabling full-motion video and CD quality
audio using industry standards defined by the Moving Pictures
Expert's Group (MPEG). Mediamatics' key differentiation is its
unique scaleable approach to system partitioning to achieve optimum
system balance between hardware and software components. The goal is
to provide the highest quality playback performance while maintaining
mass market cost objectives. Mediamatics' products are licensed by
Microsoft and are now an integral part of Windows 95. They are also
bundled with products supplied by major system manufacturers and
software companies such as Compaq, Diamond Multimedia, Gateway2000,
Hewlett-Packard, Hitachi, IBM, Micron, NEC Technologies, Sony and
Toshiba. Microsoft and Mediamatics are currently working together to
develop MPEG-2/DVD playback technology for Microsoft Windows.
"Mediamatics provides us with three key components of our
system-on-a-chip strategy: world-class MPEG expertise, balanced
hardware/software systems know-how and their home connectivity
building-block intellectual property," said Brian L. Halla,
National Semiconductor's Chairman, President and CEO.
"Mediamatics' competency in digital media processing fits right
between National's competencies in information access and human
interface technologies based on our analog and mixed signal
expertise," Halla added. "This combination sits at the center of
the convergence of the consumer, computer and communications
technologies and enables National to offer the complete system
demanded by our customers in these key markets," Halla said.
Doug McBurnie, senior vice president of National's Communications
and Consumer Group, said the acquisition of Mediamatics will
significantly speed up National's thrust into the consumer-oriented
home information appliance market.
The products and technologies that Mediamatics provides serve as
a key link in the home connectivity market. They decompress and
process digital information from a variety of sources, such as DVD
ROMs, satellite and cable networks into viewable images and sounds we
can understand. The value of silicon used in compression
applications is forecast to grow from $327 million in 1995 to more
than $1.9 billion in the year 2000, according to Dataquest.
Mediamatics has about 40 employees. The unit will retain its
identity as Mediamatics and will operate as a wholly owned subsidiary
of National Semiconductor. Prem Nath, Mediamatics' President and
CEO, will serve as president of the new subsidiary and as a National
vice president reporting to McBurnie.
"This acquisition further strengthens our existing customer
relationships and validates our vision for the convergence of
entertainment PCs, DVD players and set-top boxes," Nath said.
"National's strengths and global support structure, coupled with
Mediamatics' leading-edge technology, provide the combination our
customers have been asking us to supply."
National Semiconductor produces analog and mixed-signal based
silicon solutions for the information highway, communications,
personal systems and consumer markets. In January 1997, National
signed an agreement to sell its Fairchild Semiconductor business for
$550 million. After the sale, National will have 12,300 employees
and annual sales of approximately $2.0 billion. Final closing of the
transaction is expected by the end of March 1997.
Additional company and product information is available on
National's World Wide Web site at www.national.com, and on
Mediamatics' site at: www.mediamatics.com .
CONTACT:
National Semiconductor
Bill Callahan, 408/721-2871 (PR)
Jim Foltz, 408/721-5693 (Financial)
bill.callahan@nsc.com
invest.group@nsc.com |
