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NVIDIA and S3 Agree to Enter into Broad Cross-License Agreement


For Further Information Contact:  
Rich Black
Public Relations Manager
NVIDIA Corporation

Paul Crossley
Corporate Public Relations
S3 Corporation

For Immediate Release 

SANTA CLARA, CA – February 9, 2000 – NVIDIA™ Corporation (Nasdaq: NVDA) and S3 Incorporated (Nasdaq: SIII) today announced that they have agreed to enter into a seven-year mutual broad patent cross-license agreement. As part of this agreement, NVIDIA and S3 have agreed to dismiss their pending patent infringement suits against each other.

"With this announcement we have reached an agreement that is mutually beneficial to both companies," said Jen-Hsun Huang, president and CEO of NVIDIA Corporation. "Over the years, S3 has developed and acquired a rich portfolio of technologies in graphics, multimedia, microprocessors and system logic. Our license agreements with SGI and S3, combined with NVIDIA's rich technology patent portfolio, gives us a strong technology base on which to build winning products."

"Access to intellectual property is rapidly becoming the highest barrier to entry in today's PC graphics market," said Andrew Wolfe, Chief Technology Officer for S3 Incorporated. "Over the past ten years, S3 has built an incredibly strong IP portfolio through internal development, as well as through licensing agreements with Intel, Exponential, Cirrus and now NVIDIA. Based on our IP strength, S3 and NVIDIA rank as possibly the only two companies positioned to win long-term in the PC graphics market." 
The computing industry recognizes NVIDIA as the global leader in advanced graphics processing technology for mainstream platforms, awarding the company the most awards in the history of the PC industry. The unmatched breadth of the NVIDIA product family enables gripping multimedia experiences for the entire desktop computer market from workstations to internet-enabled appliances. In use by large corporations, small- to medium-sized businesses, and home-based consumers, NVIDIA products are the solutions of choice for the top PC OEMs, add-in card designers, and system builders worldwide. NVIDIA graphics processors deliver superior performance and crisp visual quality for PC based applications such as manufacturing, science, e-business, entertainment, and education. For more information, please visit the Company's web site at

About S3 Incorporated
Building on the technology, distribution and brand strengths of its Communications, Multimedia and Professional Graphics divisions, S3 is committed to delivering targeted products for the Personal Computer and Consumer/Internet Appliance markets. Rounding out its PC silicon offerings, S3's recent acquisition of Diamond Multimedia adds consumer brands such as the DMM Underground, Viper and Stealth series of graphics accelerators, the Rio series of Internet audio appliances, the Supra series of modems, and the HomeFree line of home networking products.

NVIDIA Safe Harbor
Certain statements in this press release, including the statements relating to the Company's performance expectations for NVIDIA's family of products and expectations of continued revenue growth, 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, manufacturing and other delays relating to new products, difficulties in the fabrication process and dependence of the Company on third party manufacturers, general industry trends, including cyclical trends in the PC and semiconductor industries, the impact of competitive products and pricing alternatives, market acceptance of the Company's new products and the Company's dependence on third party developers and publishers. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Factors Affecting Operating Results," for a fuller discussion of these and other risks and uncertainties.

Notes to Editors: The recommended way of writing NVIDIA is all CAPITALS. NVIDIA and the NVIDIA logo are trademarks of NVIDIA Corporation. Other company and product names may be trademarks of the respective companies with which they are associated.

S3 Safe Harbor
Except for historical information contained herein, the matters set forth in this press release, including statements as to S3's ability to win long-term in the PC graphics market, are forward-looking statements that are subject to risk and uncertainties, including the execution of a definitive settlement and license agreement, impact of competitive products and pricing and of alternative technological advances, S3's ability to exploit it's IP portfolio, market acceptance of S3's products, 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 September 30, 1999. S3 is a registered trademark of S3 Incorporated. The S3 corporate logo, Diamond Multimedia, Viper, Stealth, Rio, Supra and HomeFree are trademarks of S3 Incorporated. Other marks referenced herein are the property of their respective owners.