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Companies Enter into a Strategic Alliance that Includes Technology Licenses and the Purchase of Key E&S Patents for Computer Graphics
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Santa Clara, CA and Salt Lake City, UT — OCTOBER 17, 2001 — NVIDIA® Corporation (NASDAQ: NVDA) and Evans & Sutherland Computer Corporation (E&S® ) (NASDAQ: ESCC), today announced the creation of a broad strategic alliance, which includes three key elements: (1) NVIDIA licensed its Shader Technology to E&S; (2) the companies agreed to a broad cross-license of technology; and (3) NVIDIA acquired key 3D graphics patents from E&S.
The NVIDIA Shader Technology is a collection of patented 3D technologies enabling the creation of interactive, cinematic-quality realism through the use of highly programmable processing elements. It is the foundation of NVIDIA’s family of programmable graphics processor units (GPUs), starting with the breakthrough GeForce3 GPU. Several basic components of the NVIDIA Shader Technology, particularly the first-generation programmable vertex and pixel shader, were earlier licensed to Microsoft® for incorporation in the DirectX®8 Application Programming Interface (API) and established as an industry standard.
“Founded in 1968, E&S is the recognized pioneer of real-time 3D graphics technology. Many important milestones and breakthroughs can be traced directly to technologies created at E&S over the past 30 years. Many of these fundamental computer graphics techniques are pervasively used in graphics processors made for game consoles, PCs, and workstations,” stated Jen-Hsun Huang, president and CEO at NVIDIA. “The acquisition of these key E&S graphics patents will dramatically enhance our already formidable patent portfolio.”
“With talented engineers, a growing portfolio of graphics technologies and intense focus, NVIDIA has quickly become a leader in 3D graphics technology,” stated James R. Oyler, President and CEO at E&S. “While E&S has developed many breakthroughs in 3D graphics, we recently divested our workstation graphics business in order to focus on our core business of providing visual systems for simulation and training. This agreement allows our general graphics technology to be leveraged into high volume markets, while adding new capabilities including NVIDIA’s programmable shader technology to E&S’s base of unique technology and patents for the simulation industry.”
Evans & Sutherland produces professional hardware and software to create highly realistic visual images for simulation, training, engineering, and other applications throughout the world. E&S visual systems are used in both military and commercial systems, as well as in planetariums and interactive theaters. Visit the E&S Web site at http://www.es.com.
NVIDIA Corporation (NASDAQ - NVDA), located in Santa Clara, CA, is the global leader in advanced graphics and multimedia processing technology for the consumer and professional computing markets. Its 2D, 3D, video and multimedia capabilities make NVIDIA one of the premier semiconductor companies in the world. NVIDIA offers a wide range of products and services, delivering superior performance and crisp visual quality for PC-based applications such as manufacturing, science, e-business, entertainment and education.
Certain statements in this press release, including the statements relating to the companies’ performance expectations, 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 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 companies’ new products, and the companies’ dependence on third-party developers and publishers. Investors are advised to read the companies’ Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Certain Business Risks," for a fuller discussion of these and other risks and uncertainties.
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