NVIDIA

Sony Computer Entertainment Inc. and NVIDIA Announce Joint GPU Development for SCEI's Next-Generation Computer Entertainment System

For further information, contact:

David Roman  
NVIDIA Corporation 
Tel: 408-486-6250 
droman@nvidia.com

Sony Computer Entertainment Inc.
Corporate Communications (in Tokyo)
Tel: 03-6438-8686    

FOR IMMEDIATE RELEASE:

TOKYO and SANTA CLARA, CA—DECEMBER 7, 2004—Sony Computer Entertainment Inc. (SCEI) and NVIDIA Corporation (Nasdaq: NVDA) today announced that the companies have been collaborating on bringing advanced graphics technology and computer entertainment technology to SCEI’s highly anticipated next-generation computer entertainment system. Both companies are jointly developing a custom graphics processing unit (GPU) incorporating NVIDIA’s next-generation GeForce™ and SCEI’s system solutions for next-generation computer entertainment systems featuring the Cell* processor.

This collaboration is made under a broad, multi-year, royalty-bearing agreement.  The powerful custom GPU will be the graphics and image processing foundation for a broad range of applications from computer entertainment to broadband applications.  The agreement will encompass future Sony digital consumer electronics products.

“In the future, the experience of computer entertainment systems and broadband-ready PCs will be fused together to generate and transfer multi-streams of rich content simultaneously.  In this sense, we have found the best way to integrate the state-of-the-art technologies from NVIDIA and SCEI,” said Ken Kutaragi, executive deputy president and COO, Sony Corporation, and president and Group CEO, Sony Computer Entertainment Inc.  “Our collaboration includes not only the chip development but also a variety of graphics development tools and middleware, essential for efficient content creation.”

“We are thrilled to partner with Sony Computer Entertainment to build what will certainly be one of the most important computer entertainment and digital media platforms of the twenty-first century,” added Jen-Hsun Huang, president and CEO, NVIDIA. “Over the past two years NVIDIA has worked closely with Sony Computer Entertainment on their next-generation computer entertainment system. In parallel, we have been designing our next-generation GeForce GPU. The combination of the revolutionary Cell processor and NVIDIA’s graphics technologies will enable the creation of breathtaking imagery that will surprise and captivate consumers.”

The custom GPU will be manufactured at Sony Group’s Nagasaki Fab2 as well as OTSS (joint fabrication facility of Toshiba and Sony). 

Note:
* “Cell” is the code-name for an advanced microprocessor under development by IBM, Toshiba and Sony Group.

About Sony Computer Entertainment Inc.
Recognized as the global leader and company responsible for the progression of consumer-based computer entertainment, Sony Computer Entertainment Inc. (SCEI) manufacturers, distributes and markets the PlayStation(R) game console and PlayStation(R)2 computer entertainment system. PlayStation has revolutionized home entertainment by introducing advanced 3D graphic processing, and PlayStation 2 further enhances the PlayStation legacy as the core of home networked entertainment. SCEI, along with its subsidiary divisions Sony Computer Entertainment America Inc., Sony Computer Entertainment Europe Ltd., and Sony Computer Entertainment Korea Inc. develops, publishes, markets and distributes software, and manages the third party licensing programs for these two platforms in the respective markets worldwide. Headquartered in Tokyo, Japan, Sony Computer Entertainment Inc. is an independent business unit of the Sony Group.

About NVIDIA
NVIDIA Corporation is a worldwide leader in graphics and digital media processors. The Company’s products enhance the end-user experience on consumer and professional computing devices. NVIDIA graphics processing units (GPUs), media and communications processors (MCPs), and wireless media processors (WMPs) have broad market reach and are incorporated into a variety of platforms, including consumer and enterprise PCs, notebooks, workstations, PDAs, mobile phones, and video game consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 2,000 people worldwide. For more information, visit the Company’s Web site at www.nvidia.com.

Certain statements in this press release including, but not limited to, statements as to the development of the custom GPU, the benefits of the collaboration, the benefits, uses, and capabilities of the custom GPU and computer entertainment systems featuring the Cell processor, the fusion of computer entertainment systems and broadband systems, the agreement between the parties, and the manufacture of the custom GPU are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations.  Such risks and uncertainties include, but are not limited to whether SCEI and NVIDIA continue the collaboration, whether SCEI continues to use the NVIDIA custom GPU as the foundation for a broad range of its applications, market acceptance of SCEI’s next-generation computer entertainment system,, market acceptance of new products and technology, delays in ramping new products into production, manufacturing delays and defects, incompatibility of technologies, reliance on third-party manufacturers, general industry trends including cyclical trends in the semiconductor market, delays in integration of our products, the impact of competitive products and pricing alternatives, and other risks detailed from time to time in the NVIDIA reports filed with the Securities and Exchange Commission including its Form 10-Q for the quarter ended October 24, 2004. These forward-looking statements speak only as of the date hereof. NVIDIA disclaims any obligation to update these forward-looking statements.

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