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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (805)	12/17/1998 9:37:00 AM
From: Rande Is	Respond to of 57584

S3 Announces 10-Year Cross Licensing Agreement With Intel; Intel to Purchase Warrants for S3 Shares; S3 to be an Intel AGP 4X Validation Partner 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. Note to Editors: S3 is a registered trademark of S3 Inc. The S3 corporate logo is a trademark of S3 Inc. Other marks referenced herein are the property of their respective owners.