PortalPlayer and Acer Collaborate with Initiative to Extend Notebook Use to Full Day on One Charge; Industry Leaders Join Forces to Bring Preface and Windows SideShow to Notebook Computers

Business Wire, June 8, 2006

TAIPEI, Taiwan -- PortalPlayer, Inc. (Nasdaq:PLAY) and Acer today announced during Computex Taipei 2006 that the two companies are collaborating to redefine how individuals access information and entertainment content on their notebook computers, extending the usefulness of the notebook for several additional hours on a single charge. A key enabler of this initiative is a new feature supported by the Microsoft Windows Vista operating system called Windows SideShow, which enables useful information and entertainment content from the notebook to be easily selected and viewed on a secondary display or device. PortalPlayer, with its Windows SideShow compatible technology platform called Preface(TM), is working with notebook leader Acer to incorporate a second display and user interface into the design of Acer's notebook computers.

This new addition, called a Personal Media Display (PMD), will enable Acer to provide its customers with Always On access to data and content stored on the notebook including e-mail, calendars, contacts, music and photos without having to turn on and boot the system or worry about running out of battery power.

"Acer is committed to bringing fresh technology to our customers and empowering them to achieve more," said David Lee, head of notebook products management, Acer Inc. "With PortalPlayer's Preface technology, Acer is redefining a new notebook mobile experience by incorporating features similar to those in low-power portable products such as the PDA or personal media player, where critical information is at your fingertips wherever you go."

"Gartner ranked Acer as one of the fastest growing branded notebook vendors and No. 3 in worldwide notebook shipments for the fourth quarter of 2005," said Michael Maia, vice president and general manager of the Personal Media Display Division of PortalPlayer. "By combining our high-performance multimedia experience with Acer's quality and value, we will innovate in the notebook space to offer consumers the next level of portable productivity and entertainment."

In addition to being a productivity tool, the notebook is quickly becoming a storage, management and play-back center for personal entertainment content. The challenge is that it can be cumbersome to access these applications while on the go because of the time it takes to boot the system and because of the notebooks' limited battery life. Through this new level of access, PortalPlayer and Acer will increase the value of notebooks and change the way people use them in their everyday lives. The two companies are sharing their knowledge and expertise to create implementations of these technologies that will appeal to enterprises, small and medium businesses, and home users.

PortalPlayer expects Preface and Windows SideShow-equipped solutions to be available with the upcoming release of Windows Vista. For more information about PortalPlayer and its Preface technology please visit www.portalplayer.com/preface. For more information about Acer and its award winning notebooks, please visit http://global.acer.com/products/notebook/index.htm.> About Acer

Acer ranks as the world's No. 4 branded PC vendor, designing easy, dependable IT solutions that empower people to reach their goals and enhance their life. Since spinning-off its manufacturing operation, Acer has focused on globally marketing its brand-name products: mobile and desktop PCs, servers and storage, LCD monitors and high-definition TVs, peripherals, and e-business solutions for business, government, education, and home users. Acer's unique Channel Business Model has been instrumental in the company's latest success. The model encourages partners and suppliers to collaborate in a winning formula of supply-chain management, allowing Acer to provide customers with fresh technologies, competitive pricing, and quality service. Established in 1976, Acer Inc. employs 5,600 people supporting dealers and distributors in more than 100 countries. Revenues in 2005 reached US$9.7 billion. Please visit www.acer.com.

About PortalPlayer

PortalPlayer develops semiconductor, firmware and software platforms for portable multimedia products such as personal media players and secondary display enabled notebook computers. PortalPlayer products empower consumers to quickly and easily manage, enjoy and have access to multimedia content and other forms of information. PortalPlayer is headquartered in San Jose, Calif., with offices in Kirkland, Wash.; Taipei, Taiwan; and Hyderabad, India. For more information, visit http://www.portalplayer.com.

PortalPlayer and the PortalPlayer logo are trademarks of PortalPlayer Inc. All other product and company names herein may be trademarks of their registered owners.

Forward-Looking Statements

Except for the historical information contained herein, the matters set forth in this press release, including, but not limited to, statements regarding the availability of Windows Vista and Windows SideShow, the availability of notebook computers with Preface technology platform functionality, the timing of the introduction of Acer notebook computers containing the Preface technology platform, the compatibility of notebook computers containing the Preface technology platform with Windows Sideshow, the creation of new mini-applications or Gadgets that work with the Preface platform, the ability for Acer notebook computers to provide users with instant access to critical data or multimedia, or to change the way people manage their lives, and the anticipated performance of implementations by Acer of the Preface technology platform are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expect," "believes," "anticipates," "plans," "expects," "will," "designed to," "forward," "have the potential to" and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance. Actual results could differ materially from those discussed in these forward-looking statements as a result of risks and uncertainties, including, among others, the market acceptance of Acer notebook computers containing the Preface technology platform, the functionality and performance of Acer notebook computers that contain the Preface technology platform, the development of gadgets that work with the Acer notebook computers, manufacturing and supply risks, the timing and introduction of Windows Vista and Windows SideShow products, and other risks and uncertainties detailed in PortalPlayer's quarterly report on Form 10-Q for the quarter ended March 31, 2006 and from time to time in PortalPlayer's SEC filings. These forward-looking statements speak only as of the date hereof. PortalPlayer does not undertake any obligation to update forward-looking statements.