Broadcom and S3 collaborate on Networked RIO Audio Devices; Broadcom's iLine10 Links S3's New Rio Digital Audio Receiver to Music on Home PC

Business Wire, May 24, 2000

Business Editors/High Tech Writers

IRVINE, Calif. and VANCOUVER, Wash.--(BUSINESS WIRE)--May 24, 2000

Broadcom Corporation (NASDAQ: BRCM), the leading provider of integrated circuits enabling high-speed broadband communications to and throughout the home and S3 Incorporated (NASDAQ: SIII), the leader in digital audio and Internet appliances, announced today a collaboration to provide a home networking solution for the new Rio home audio system.

Now, digital music distribution throughout the home is made possible with Broadcom's iLine10(tm) home networking solution and S3's Rio Digital Audio Receiver(tm).

S3's new Rio Receiver eliminates the need for multiple stereo systems or moving CDs from room-to-room in the home, which means time-consuming music duplication is no longer necessary. The Rio Receiver, embeds the latest home phoneline networking standard, HomePNA 2.0, giving consumers quick access to locally-stored digital audio files residing on a connected PC or residential gateway.

"Until now, digital audio in the home has been tied to the PC," said Jim Cady, President for S3's Rio Audio Group. "Our new Rio Receiver with Broadcom's home networking solution allows consumers to quickly pipe and listen to their digital music collections throughout the house."

This new category of home entertainment is fed through an embedded Broadcom iLine10 home networking silicon system (basis for HomePNA 2.0 standard) giving S3 products ability to play locally-stored digital music content anywhere in the home. Forrester Research estimates that by the year 2003, 32 million portable digital audio devices will be sold.

"Our customers are extremely interested in building Internet-connected devices that offer consumer entertainment content in real time or on demand over the home network," said Jeff Thermond, vice president and general manager of Broadcom's Home Networking Business Unit. "The ability to network S3's receiver exemplifies this new category of Internet Entertainment devices now available to the consumer. Incorporating standardized home networking with a Quality of Service element means simultaneous shared Internet access and streaming digital music content is a reality today," added Thermond.

About S3 Incorporated

Following its acquisition of Diamond Multimedia and the transfer of its graphics chip assets to a joint venture company, S3 has been relaunched as a digital media company focused on creating products and partnerships that help build the digital home. Combining significant financial assets with a strong technology portfolio, that includes the Rio family of digital audio players and the HomeFree series of home networking solutions, S3 is uniquely positioned to capitalize on high growth opportunities in the rapidly converging Internet and consumer device markets.

About Broadcom

Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, video and data to and throughout the home and within the business enterprise. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies integrated circuits for a number of the most significant broadband communications markets, including the markets for cable set-top boxes, cable modems, high-speed office networks, home networking, Voice over Internet Protocol (VoIP), residential broadband gateways, direct broadcast satellite and terrestrial digital broadcast, and digital subscriber line (xDSL). Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at www.broadcom.com.

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 and other risks detailed from time to time in S3's SEC reports, including its quarterly report on Form 10-Q for the quarter ended March 31, 2000. S3 is a registered trademark of S3 Incorporated. The S3 corporate logo, Diamond Multimedia and HomeFree are trademarks of S3 Incorporated. Rio is a trademark of RioPort.com, Inc. and is used by S3 under license from RioPort.com, Inc. Other marks referenced herein are the property of their respective owners.

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