NCTI Subsidiary Licenses 32-Bit Processor Core to STMicroelectronics for Use in Smartcard Applications

Business Wire, Nov 23, 1998

STAMFORD, Conn.--(BUSINESS WIRE)--Nov. 23, 1998--

Licensee is Leading Manufacturer of Smartcard Chips

Advancel Logic Corporation (ALC), the newly acquired wholly-owned subsidiary of NCT Group, Inc. (NASDAQ: NCTI), today announced that STMicroelectronics (formerly SGS-THOMPSON, NYSE: STM) will license the T2J (Tiny Turbo-J(tm) for Java(tm))-Processor Core to combine it with its proven secure architecture and advanced nonvolatile memory technology, to offer a new generation of secure microcontrollers for smartcard applications.

The T2J-Processor Core is the ideal architecture to accelerate the execution of Javacard(tm)-based smartcard applications. In addition, the core architecture provides the flexibility and performance to meet virtual machine requirements, independent of the language used to develop operating systems and applications, surpassing in performance all currently existing solutions.

"We are proud that STMicroelectronics, the undisputed worldwide leader in smartcards products, has embraced our technology," said Anand Sheel, President, Advancel. "STM has earned this leadership position through its unrivaled track record in security, its excellent technology platform and its world-class manufacturing capability."

Michael J. Parrella, President, NCTI added, "The agreement with STMicroelectronics is consistent with our strategy of emphasizing Java-based technologies." NCTI is an authorized Java licensee of Sun Microsystems, Inc. (NASDAQ: SUNW).

According to published market data, 1.15 billion smartcard chips were shipped in 1997. The total chip market is anticipated to exceed $1.4 billion in the year 2000.

A smartcard contains an embedded integrated circuit that can process information on the card once inserted and powered by a card reader. Examples of microcontroller smartcards are the electronic purse credit/debit card functions, ID cards that provide authorized access to networks and subscriber identification modules (SIM) that secure certain PCS cellular phones against fraud. The emergence of multi-function/multi-application needs in various application fields requires higher complexity, larger memory sizes and higher performance chip architectures.

STMicroelectronics is a global independent semiconductor company with strong European roots listed on the New York Stock Exchange (NYSE: STM) and on the Bourse de Paris. It designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronics applications, including telecommunications systems, computer systems, consumer products and industrial automation and control systems. In 1997, the company was recognized as one of the world's best companies by Industry Week and Upside Magazine. Further information on STMicroelectronics can be found at www.st.com.

Advancel Logic Corporation, a wholly-owned subsidiary of NCT Group, Inc. is located in San Jose, California. Advancel is a developer of algorithm-specific microprocessor cores with native Java execution. The company offers a family of highly-optimized processors for embedded applications. For more information, refer to the company's World Wide Web site at http://www.advancel.com.

NCTI is a leading technology developer with an extensive portfolio of proprietary algorithms and a wide variety of product offerings for consumer, commercial and industrial applications. The Company specializes in the utilization of sound and signal waves to reduce noise, improve signal-to-noise ratio and enhance sound quality. For more information, refer to the company's World Wide Web site at http://www.nct-active.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain information contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"), which became law in December 1995. In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, the Company wishes to caution investors and prospective investors about significant factors, which among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and cause them to differ materially from those expressed in any such forward-looking statements. Investors and prospective investors should read this press release in conjunction with the Company's most recent Form 10-K and Forms 10-Q.

Java and Javacard are trademarks of Sun Microsystems.