Nike and S3's Rio Division Ship PSA/Play 120 Digital Audio Player

Business Wire, Sept 12, 2000

Business/High Tech Editors

VANCOUVER, Wash.--(BUSINESS WIRE)--Sept. 12, 2000

All-New, Digital Audio Player for Sports and Fitness, Preloaded

With Music From Snoop Dogg and the Newest

Single "You're an Ocean" by FastBall

Nike, Inc. (NYSE:NKE) and S3(R)'s Rio Division(TM) (Nasdaq:SIII) announced today they have shipped the Nike PSA/Play 120, a portable, ergonomically designed digital audio player geared toward fitness enthusiasts.

"This player is perfect for the sports-minded consumer who wants a quality, skip-free music experience while working out," said Mike Reed, vice president of marketing with S3's Rio Division. "This player is another great example of how we are carefully tailoring the device to the desires of consumers."

"Nike has stuck a wire in sports with the PSA/Play," said Clare Hamill, vice president of Nike Equipment. "This is what athletes really want -- a small, portable, skip-free player to wear or carry every time they exercise or train."

Nike PSA/Play 120, featuring Rio Audio

This player is specifically designed to meet the needs of the athletic community and includes the following features:

      --  Ergonomic Design -- Rounded edges make it comfortable to store
        in your pocket or wear in the included arm band.

      --  Sightless Control -- Raised buttons for fast forward, rewind,
        play and stop as well as volume control that is easily
        recognized by touch make the PSA/Play 120 easy to use without
        looking at the player.

      --  Rio Audio -- Built on S3's Rio Audio technology, the PSA/Play
        120 will provide consumers with a digital music experience
        consistent with the rest of S3's market-leading Rio players.

      --  Embedded, Expandable Memory -- 64 MB of built-in memory will
        provide 120 minutes of Rio Audio-quality digital music. A
        memory expansion slot is available on the back of the player
        to boost music storage to 210 minutes.

      --  Remote Control -- A fully functional, wearable remote control
        with a dot matrix LCD display improves the player's usability
        while streamlining it for comfort.

      --  Music Format Support -- The Nike PSA/Play 120 will support
        Windows Media (WMA) and MP3, featuring an upgradeable
        processor to support emerging formats as they are available.

Platinum Winning Artists Featured on Nike PSA/Play 120

S3 continues its relationship with recording labels by offering top tier content on the Nike PSA/Play 120. Each player is preloaded with several tracks from TVT Records: "Got Beef" by Snoop Dogg & The Eastsidaz, "Waffle" by Sevendust, "I Preach to Party" by Pills and "I'm the Man Who Murdered Love" by XTC. S3 also partnered with Hollywood Records in order to showcase "You're An Ocean," the newest single from FastBall, on the Nike PSA/Play 120.

Nike PSA Play/60 Ships on Heels of 120

The newest member of the family of players, also the result of a collaboration between Nike and S3, called the Nike PSA Play[60 will be available soon after the release of the Nike PSA/Play 120. This entry-level sports and fitness player comes with 32 MB of memory for 60 minutes of music.

The Nike PSA/Play 60 will feature two artists from DreamWorks Records, "Last Resort" by Papa Roach and "Illumination" by Rollins Band as well as two artists from Sire Records, "Bullet in a Gun" by Paul Oakenfold and "Wake Up" by Grand Theft Audio.

Pricing and Availability

The Nike PSA/Play 120 shipped to North American retail outlets with a suggested retail price of $299.95. The Nike PSA/Play 60 has a suggested retail price of $199.95. Each package ships with all necessary software and cables, belt clip and arm band, premium headphones, plus player and remote.

Rio Audio Branding Program

The Nike agreement is a substantial element of S3's Rio Audio branding program. The program allows a select group of consumer product-focused companies to market digital audio devices that appeal to various lifestyles and market segments, while still offering a consistent music experience. Based on extensive testing and user feedback, key elements of the Rio music experience include familiar user control and interface, edgy product style, superior sound quality, access to music industry-supported formats, and compatibility with home-networked audio and software on the PC and Mac. Consumers who purchase these co-branded devices will enjoy a consistent experience through a variety of products.

About S3's Rio Division

Following its acquisition of Diamond Multimedia and the transfer of its graphics chip assets to a joint venture company, S3 has been re-launched 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, which 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. For more information on S3, contact Tracy Perry, Investor Relations, 408/588-8086, ir@s3.com.