S3's Savage4 Selected by IBM for New Business PCs; Announcement Marks First Savage4 Xtreme OEM Design Win

Business Wire, Sept 29, 1999

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 29, 1999--

S3(R) Incorporated (Nasdaq:SIII) today announced that IBM (NYSE:IBM) has chosen its Savage4(TM) and Savage4 Xtreme(TM) accelerators to power IBM's newest PC 300PL and PC 300GL series of business systems.

Combining advanced security technology and Intel processors with Savage4 and Savage4 Xtreme-based Number Nine (OTC BB:NINE) SR9 graphics boards(1), IBM's newest business systems deliver optimal productivity and security to today's corporate and home business users.

"S3 continues to win with high volume PC manufacturers such as IBM because we deliver industry-leading technology combined with a superior support infrastructure," said Paul Franklin, president of S3's Multimedia Business Unit. "A key differentiator between S3 and its competitors, this combination of technology and support has been the basis for our rapid return to market leadership in 1999."

About the Savage4 and Savage4 Xtreme Accelerators

Targeted at the commercial and consumer PC markets, Savage4 and Savage4 Xtreme are designed to deliver 3D rendering capabilities equivalent to higher-end, gaming solutions, as well as leading 2D graphics and video acceleration.

Built around a 128-bit super pipelined 3D engine, Savage4 and Savage4 Xtreme provide 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. Raising the performance level of the Savage4 accelerator, the Savage4 Xtreme delivers significantly higher engine and memory clock speeds.

About S3 Incorporated

Building on its proven technology expertise, established worldwide distribution channels, strong brand recognition and strategic partnerships, S3 is committed to delivering targeted products for the Personal Computer, Communications and Consumer/Internet Appliance markets.

Products for these markets currently include its Savage4, Savage4 Xtreme, Savage2000 and mobile Savage graphics chips, the Rio series of audio players; the Stealth III S540, Stealth III S540 Xtreme and Viper II graphics add-in boards; the Monster Sound MX300 audio accelerator; the Fire GL1 professional graphics add-in board; the Supra series of modems; and the HomeFree line of home networking products.

The company's Internet music portal site is at www.RioPort.com and its e-commerce sites are at www.estore.diamondmm.com and eAuction.diamondmm.com.

Except for historical information contained herein, the matters set forth in this press release, such as the statement as to expanding business with IBM, 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, IBM' product marketing timelines, design, competitive product and other factors that may affect IBM'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. 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.

(1) Savage4 Xtreme-based SR9 boards available on select IBM PC 300GL models.