3D Chip Shipments Continue Strong Increase; New Report from JPA Shows 3D Chip Shipments are Up 11% Over Q2 99 and Up 24% From the Same Period Last Year.

TIBURON, Calif.--(BUSINESS WIRE)--Dec. 15, 1999--

Jon Peddie Associate's (JPA) newly released, 3rd quarter report on the graphics chip and AIB (add-in board) market, The Quarterly Report on Semiconductor and Add-in Board Shipments, shows desktop graphics controller shipments grew by 3% during the quarter.

3D continues to account for the majority of those shipments showing an increase 11% from the previous quarter and are up 24% over the same period last year.

The market for desktop graphics controllers continues to grow despite the coming ramp of integrated graphics core chipsets. However, JPA expects desktop controller companies and add-in board companies in particular to be pressed by integrated chipsets in the next two to three quarters.

"The lower cost of high performance 3D graphics controllers continues to bring high-performance capabilities to a much broader set of users in 1999," said Dr. Jon Peddie, president of JPA. "The result has been a significant increase in units shipped, and a tremendous increase in overall graphic's chip revenue outpacing the rest of the semiconductor industry."

This edition of JPA's Quarterly Report on Semiconductor and Add-in Board Shipments covers the market activity of PC-based graphics controllers for the third quarter of 1999. This is the 45th consecutive quarter JPA has prepared this report covering all the popular types of desktop and notebook display controllers based primarily on VGA. -0-

     Other Key Findings

--   Over 29.26 million desktop controllers were shipped in the third
     quarter of 1999. Nearly 98% of the shipments were 3D with just
     about 2% VGC.
--   44% of graphics chips were on the motherboard this quarter -- up
     a few points from the previous quarter.
--   Brand names account for 75% of the add-in board (AIB) volume,
     with the top five vendors accounting for 72%.
--   Desktop controller unit shipments are expected to grow by 5% in
     the fourth quarter driven by traditionally strong fourth quarter
     consumer demand and lead-in order for the first quarter of 2000.

     About the Report

     JPA's Quarterly Report on Semiconductor and Add-in Board
Shipments provides specific data on:

--   Desktop graphics controllers: (VGC, 3D, and Multimedia
     Controllers) for all types of PCs and Windows NT-based
     workstations
--   Flat panel display controllers: (VGC, 3D, and Multimedia
     Controllers) for portable computer and CRT replacement markets
--   Graphics add-in boards: (branded and non-branded)

-0-

The data is expressed in units shipped for the third quarter 1999, worldwide.

The report also includes forecasts of graphics semiconductor and add-in board unit shipments through the third quarter of 2000 and shows a comparison of last quarter's forecast of desktop graphics controllers with the actual results.

JPA's Quarterly Report on Semiconductor and Add-in Board Shipments can be purchased for $500 a copy ($2,000 for a one year subscription). For more information or to purchase, contact Carol Robinson at 415/383-1582 or at [e-mail]. Or visit the website at www.jpa.com.

About Jon Peddie Associates

Jon Peddie Associates (JPA) has been monitoring and reporting on the digital media technology since 1984. JPA's analysis and market research is relied on by computer industry senior management and professionals, venture capital and financial institutions, and trade publications and press. JPA publishes other market studies, including the Digital Entertainment Box/convergence Market Study, the Add In Graphics Board Market Studies and Software Tools and Applications Quarterly Reports, as well as The Peddie Report and Multimedia Weekly.

Jon Peddie Associates is located at 4 Saint Gabrielle Court, Tiburon, CA 94920. Telephone: [phone]. Fax: [phone]. Web: http://www.jpa.com. Email: [e-mail]

JPA is a division of Penton Media, Inc. Penton Media, Inc. (NYSE: PME) is a leading diversified business media company that produces market-focused magazines, Web sites, trade shows, and conferences, and provides marketing and business development services. Penton serves the electronics; Internet/IT; design/engineering; food/retail; government/compliance; leisure/hospitality; management; manufacturing; mechanical systems/construction; and supply chain/aviation markets. For more information, visit the Penton Media Web site at www.penton.com.

Note to Editors: Charts and tables are available. For copies, or to set up an interview, contact Debbie Nelson 415/455-9533.