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To: Ram Seetharaman who wrote (2178)12/8/1998 7:43:00 PM
From: Steve Reinhardt  Read Replies (1) | Respond to of 3493
 
Ram,

The suits between Aureal & Creative does not really
affect ESS. The rumor over in Yahoo is at

messages.yahoo.com@m2.yahoo.com

Here is a portion of it:

"....
Now the rumor part: I heard that CPQ has been draining ESST of sound chips (PCI).
Can't get enough of them. I knew this about a month ago but did not
post it because it is entirely unconfirmed to be of any
truth, just a tidbit I heard along the way. The part I don't know is
how much ESST is selling that Maestro2 chip to them (CPQ) for??? I
wish I knew so that I could crunch some numbers. Oh well, anyway...
if the tidbit is true then at least rev. for the qtr. should be
decent. Chan put that new MIS in place to (to track) so hopefully
costs will have been better managed for the qtr (reduce lost product,
stolen product, manage inventory better, etc)....."

I think the low volume means few people want to trade, few want to
sell or buy. This is not necessarily bad. When good news start to
leak from ESS's OEM customers, you will see stocks move cross $7.00.

The Internet chip set seems not moving in big quantities yet.
The chips that move in big quantities are SVCD chips, VCD chips,
ISA audio chips and PCI audio chips.

My guess and wish are: Good than expected earnings for Q4, 1998
send the stocks over $10.00 when good news start to leak out from
ESS's customers, either in video or audio side.

Steve



To: Ram Seetharaman who wrote (2178)12/9/1998 11:24:00 AM
From: Steve Reinhardt  Read Replies (2) | Respond to of 3493
 
Ram,

This is the chip that ESS's competitors worried the most.
High performance but low priced.

This announcement already moved the stock up 5% this morning.

Steve
..........................................................

biz.yahoo.com

ESS Technology, Inc. Introduces Single Chip DVD
Decoder for Consumer Players

FREMONT, Calif., Dec. 9 /PRNewswire/ -- ESS Technology Inc. (Nasdaq: ESST - news) today announced the
second-generation single chip hostless DVD solution, Swan[tm], targeted for the DVD player market.

The Swan[tm] DVD chip is designed to offer OEMs a high quality, low cost, complete DVD solution for the consumer
electronics market. Its key features include MPEG-2 Audio/Video decoder, Sub-Picture decoder, Dolby[tm] Digital Audio,
Linear PCM audio decoder, DVD navigation software, Content Scrambling System and On-Screen Display.

The Swan[tm] DVD is fully backward compatible with Audio CD, VideoCD 2.0 and Interactive VideoCD 3.0 standards, as
well as the recently approved SuperVCD standard announced by the China government and will allow consumers to select
viewing content from a wide selection of titles in these different formats.

''ESS's affordable single-chip DVD solution could help narrow the price gap between the VCD and DVD players,'' stated
Johnston Chen, Vice President of Consumer Products at ESS. ''Our low cost Swan[tm] DVD solution, which conforms to all
international standards, coupled with an increasing number of DVD titles, will allow OEMs to bring an affordable home theater
experience into the consumer's living room worldwide.''

The Swan[tm] DVD decoder chip offers one of the most complete feature sets available in current DVD chips. The features
include glueless interface for DVD loaders, Karaoke and Smart Zoom[tm] for motion zoom and pan. In addition, the Swan[tm]
DVD single-chip solution integrates CPU, MPEG-2 Audio/Video decoder, Dolby[tm] Digital Audio, CSS, DVD navigation
software and many other features, making it the lowest chip count solution in the industry.

Features
Highly integrated single-chip DVD video decoder
Programmable multimedia processor architecture
Supports MPEG-1 system and MPEG-2 program streams
DVD Navigation 1.0
VideoCD and SuperVCD playback control
Compatible with audio CD and VideoCD 1.1, 2.0, and 3.0, SuperVCD
Sub-Picture decoder
Dolby[tm] Digital (AC-3) 2-channel downmix audio output for Dolby Pro

Logic[tm]

Built-in Content Scrambling System (CSS)
Full Karaoke function
Motion zoom & pan with SmartZoom[tm]
On-Screen Display (OSD)
Pan & Scan and Letter-Box conversions
Trick modes include Slow, Fast Forward, Fast Reverse, Step, and Goto
NTSC to PAL and vice versa with SmartScale[tm]
Video error concealment with SmartStream[tm]
MPEG audio layers 1 & 2
Linear PCM streams for 48 KHz and up to 96 KHz
S/PDIF audio output
SDRAM interface