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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?


To: Carl R. who wrote (13120)6/16/1999 9:24:00 AM
From: John Nasser  Respond to of 14577
 
BancBoston just raised S3 to "BUY".



To: Carl R. who wrote (13120)6/16/1999 9:25:00 AM
From: John Nasser  Respond to of 14577
 
NEW DESIGN WIN THIS MORNING... COMPAQ PRESARIO'S....



To: Carl R. who wrote (13120)6/16/1999 9:27:00 AM
From: John Nasser  Read Replies (1) | Respond to of 14577
 
Wednesday June 16, 7:00 am Eastern Time

Company Press Release

S3's Savage4 Featured in
Compaq Presario PCs

Support from the World's Largest
Supplier of PCs Highlights Success of S3's
Savage4 Accelerator

SANTA CLARA, Calif.--(BUSINESS WIRE)--June 16, 1999--S3® Incorporated
(Nasdaq:SIII - news) today announced that Compaq Computer Corporation (NYSE:CPQ -
news) has selected S3's Savage4(TM) accelerator to power its new line of Presario
consumer PCs. Compaq's new line of Internet PCs that incorporate the Savage4 deliver
high-speed 3D graphics performance, photo-realistic image quality, and stunning digital video
playback.

''With the Presario series, we set out to build the best price performance line of consumer
PCs that delivers the latest in PC technology for today's market,'' said Mark Vena, Director
of Product Marketing, Consumer Desktops, Compaq Computer Corporation. ''So, when it
came to the graphics subsystem, we chose S3 as they were the one company that could
provide us with a solution that delivers the best combination of affordability and
performance.''

''Compaq's decision to partner with S3 as the preferred graphics supplier for Presario PCs
is a milestone achievement for S3,'' said Dan Karr, Vice President of Worldwide Sales for
S3 Incorporated. ''This announcement clearly shows that S3 is well on its way toward its
goal of reclaiming its position as the number one PC graphics company.''

About the Savage4 Solution: S3TC Gives Your PC 20/20 Vision

Built around a new 128-bit super pipelined 3D engine, Savage4 provides AGP 4X
technology, true 32-bit 3D rendering, S3 Texture Compression (S3TC), trilinear filtered
single-pass multi-texturing, hardware accelerated DVD, 32MB memory support and
complete digital flat panel support.

S3TC, which was adopted by Microsoft as a standard in DirectX, is a major leap forward
for PC gaming technology as it enables games to utilize up to six times the amount of
textures found in today's games. This radically improves the image quality of tomorrow's
hottest 3D titles and, essentially, gives your PC 20/20 vision for the first time. As a result,
more than 50 software developers and publishers will be including S3TC in their 1999
games.

''To the game player, having an S3TC-enabled game means unbelievable realism,'' said
Mark Rein, Vice President of Epic Games Inc. ''It means 6X the resolution of what they're
used to without a perceivable loss in performance. It means that the gravel is so real, you
can almost reach out and feel the texture. It's just an unbelievable improvement in graphics
and technology!''

About S3 Incorporated

With the world's largest installed base of graphics and video accelerators, S3 Incorporated
has established itself as a market leader in technology excellence, core business strengths,
strategic partnerships and worldwide reach. Building on these strengths, S3 is committed to
delivering targeted products for the Personal Computer, Computing Integration and
Consumer Appliance Markets.

Except for historical information contained herein, the matters set forth in this press release,
such as statements as to S3's ability to become the market leader in PC graphics, Savage4's
competitive advantages, Savage4's and Compaq's consumer PCs production schedule, and
whether Compaq products will account for substantial volume shipments of Savage4, 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 Savage4 products in a timely manner, market
acceptance of the company's and its customers' new products, Compaq's product marketing
timelines, design, competitive product and other factors that may affect Compaq's and other
potential customers' decisions to use Savage4 product, and other risks detailed from time to
time in S3's SEC reports, including its Quarterly Report on Form 10-Q for the three months
ended March 31, 1999.

Note to Editors: S3 is a registered trademark of S3 Incorporated. The S3 corporate logo and
Savage4 are trademarks of S3 Incorporated. Other marks referenced herein are the
property of their respective owners.

Contact:

S3
Paul Crossley, 408/588-8664 (Press Inquiries)
pcross@S3.com
Eugene Anton, 408/588-8086 (Investor Inquiries)
s3.com