CUBE/SAMSUNG DEMONSTRATE CONSUMER DVD RECORDER.

C-Cube Microsystems (Nasdaq:CUBE) and Samsung Electronics Co., Ltd., recently demonstrated a DVD recorder that allows consumers to record video onto a DVD-RAM disc in the MPEG-2 digital format.

The C-Cube/Samsung technology was the first to demonstrate live realtime recording using the DVD Forum's DVD Specification for Video Recording (DVD-VR). The specification defines features such as still picture, video slide show, recording and simple editing features. C-Cube provides both the MPEG-2 video encoding and the formatting information needed for DVD-VR compatibility.

The demonstration was based on a prototype DVD recorder that was developed by Samsung. The prototype uses C-Cube's DVxplore(TM) and ZiVA-3(TM) MPEG-2 encode and decode silicon as well as Samsung's DVD-RAM drive and system design technology.

"Consumer DVD recorders will bring the quality, reliability and ease-of-use of DVD technology to home video recording," said Dong-Ho Shin, director of the Opto-mechatronics Lab at Samsung Electronics. "Optical-based video recording brings features that surpass conventional tape recording, including instant, non-linear access to any recorded location, digital special effects and editing, as well as quality that doesn't degrade from multiple viewings."

"This system demonstrates the power of DVD recording that will soon be available to consumers," said Fermi Wang, general manager of C-Cube's PC/Codec Division. "It also illustrates how C-Cube is bringing the quality and ease-of-use of digital video to new consumer entertainment products."

About C-Cube's DVxplore and ZiVA-3

DVxplore is a single-chip MPEG and DV CODEC (encoder and decoder). The chip encodes (records) in MPEG-2 using the industry's most advanced MPEG-2 compression algorithms for delivery of crisp image quality. DVxplore's encode/decode function also allows video to be input from a DV camera and transcoded into MPEG for storage. This capability provides a seamless connection between digital camcorders and DVD players.

ZiVA-3 is C-Cube's highly integrated DVD decoder. ZiVA-3 incorporates a wide array of trick modes for DVD playback including zoom, pan and scan of live action video. Specifically for the Japan, China and Korea markets, ZiVA-3 offers advanced karaoke features. The device also has the industry's most advanced audio feature set including: Dolby Digital decode, MPEG-2 multi-digital decode, pro-logic decode, DTS digital output and 3D audio.

Samsung Electronics, Co., Ltd., with 1998 sales revenue of U.S. $16.6 billion is a world leader in the electronics industry. The Korea-based firm has operations in 46 countries and employs 42,000 people worldwide. The company consists of three main business divisions: Multimedia and Home Appliances, Semiconductors, and Information and Telecommunications. For more information on Samsung, visit: www.samsungelectronics.com.

C-Cube Microsystems Inc. is the industry leader in the development and delivery of highly integrated digital video silicon solutions that address the communications and consumer markets. C-Cube is headquartered in Milpitas, Ca., with offices in North America, Europe and Asia. Its stock is traded on the NASDAQ National Market System under the symbol CUBE. C-Cube can be reached at 408/490-8000, or on the World Wide Web at http://www.c-cube.com.

For more information, call 408/490-8017.