S3's Savage4 Selected for IBM Consumer PCs; S3 Supplies IBM with Volume Graphics Solutions

Business Wire, May 13, 1999

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 13, 1999--

Continuing its success in the volume, mainstream PC market, S3(R) Incorporated (Nasdaq:SIII) today announced that IBM (NYSE:IBM) has selected its Savage4 accelerator to power IBM's next-generation consumer PCs.

One of the largest shipping PC platforms worldwide, IBM's consumer PCs will build on the visually stunning 3D performance of the Savage4 accelerator to deliver the industry's hottest graphics technology.

"S3's Savage4 accelerator provides the high-performance graphics solution that enhances the consumer's e-lifestyle application experience," said Brian Connors, general manager, IBM Worldwide Consumer Systems. "S3 offers consistent value and high product quality with a reputation for service and support. Their technology enhances our latest Intel processor based product offerings with stunning 3D performance and image quality."

"IBM's selection of Savage4 highlights the widespread industry adoption of Savage4 as the graphics standard for 1999," said Dan Karr, vice president of Worldwide Sales for S3 Incorporated. "Based on this continuing success, S3 is well on its way toward its goal of reclaiming its spot as the market leader in PC graphics."

More details on IBM's forthcoming consumer PCs with Savage4 will be made public once the systems are officially released later this year.

About the Savage4 Solution

Targeted at the commercial and consumer PC markets, Savage4 is designed to deliver 3D rendering capabilities equivalent to high-end, niche gaming solutions, as well as leading 2D graphics and video acceleration. Built around a new 128-bit super pipelined 3D engine, Savage4 provides AGP 4X technology, true 32-bit 3D rendering, S3TC, trilinear filtered single-pass multi-texturing, hardware accelerated DVD, 32MB memory support and complete digital flat panel support.

Spanning all volume mainstream PC price segments, Savage4 comes in two configurations: the Savage4 PRO and the Savage4 GT. Targeted for mid-range volume PC markets, the Savage4 PRO offers industry-first AGP 4X technology, 143MHz memory support and up to a 32MB local frame buffer, while the Savage4 GT offers AGP 2X technology, 125MHz memory support and up to a 16MB local frame buffer for low-end PC markets.

Based on its feature set, expected performance level and price point, S3 believes that the Savage4 accelerator is the mainstream graphics platform to beat in 1999.

About S3 Incorporated

One of the largest suppliers of graphics and video accelerators in the world, 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 IBM's consumer PCs production schedule, and the availability of products incorporating 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, customers' product marketing timelines, design, competitive product and other factors that may affect current and potential customers' decisions to use Savage4 product, and other risks detailed from time to time in S3's SEC reports, including its Annual Report on Form 10-K for the year ended December 31, 1998.

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.