Cirrus Logic Launches Laguna3D Graphics Accelerators; New Chip Solutions Highlight Company's Commitment to Multimedia Market Leadership.

FREMONT, Calif.--(BUSINESS WIRE)--Sept. 24, 1996--Cirrus Logic Inc. (Nasdaq: CRUS) today unveiled two new multimedia chips that deliver superior 3D graphics performance to mainstream PCs at affordable prices.

The company's highly integrated Laguna3D(TM) accelerators take direct aim at the burgeoning 3D graphics chip market, which Cirrus Logic expects to exceed $500 million by the end of 1997.

As the latest entries to Cirrus Logic's Laguna product family, the two new 3D graphics chips (CL-GD5464 and CL-GD5465) underscore the company's strategy to offer PC manufacturers the "best of breed" in multimedia solutions, supporting emerging applications ranging from 3D PC games to Internet 3D and video. The new 3D graphics chips come on the heels of other key multimedia announcements from Cirrus Logic including the FastPath(TM) telephony chipsets, designed to boost modem speed, throughput and connectivity to the highest levels, and new 3D CrystalClear audio solutions that deliver unrivaled sound quality for PCs.

Cirrus Logic's Laguna3D multimedia strategy and chipsets were disclosed today at a special press briefing that also included industry executives from Creative Labs Inc., Intel Corp., Microsoft Corp., and Rambus Inc. These companies were on hand to endorse Cirrus Logic's achievement in driving high-performance 3D graphics into the mainstream PC market.

According to Michael L. Hackworth, president and CEO of Cirrus Logic, "Our strategy has always been to anticipate transitions in mass markets, and we believe we've done just that in the 3D multimedia market for PCs. Analysts see this market expanding in 1997, with sales volume beginning to ramp in Christmas 1996. With our Laguna3D chips and other key multimedia product offerings now shipping, we believe that we have entered the market at the right time to reinforce our strong PC multimedia market position."

Based on industry estimates for the growth in PC shipments, Cirrus Logic believes the market for 3D graphics chips could represent a $1.5 billion market opportunity by the year 2000. Priced at $29.50 in high volume today, Cirrus Logic's GD-5464 Laguna3D chip expects to penetrate this market by enabling OEMs to develop arcade-action graphics add-in boards that target retail price points significantly under $200. Additionally, the company expects its Laguna3D graphics capabilities to become embedded on the PC motherboard of leading computer developers as a standard feature.

Creative Labs Adopts Laguna3D Architecture

Also disclosed at today's briefing, Creative Labs, the world's leading retailer of add-in boards, has chosen Cirrus Logic's Laguna3D architecture for its next-generation 3D multimedia product developments. Creative Labs expects to introduce a Laguna3D-based add-in board for the Christmas 1996 buying season.

"Creative's Graphics Blaster line of accelerator cards achieve outstanding performance with Cirrus Logic's powerful chips," said Hock Leow, vice president of graphics and audio for Creative Labs. "With Laguna3D, we will offer an excellent 2D/3D solution at a very affordable price, further enabling us to build upon Creative's success in the multimedia market."

Microsoft Direct3D and Intel AGP Support

Employing an innovative architecture that makes the 3D experience more realistic through higher graphics resolution and faster arcade-like action, the new Laguna3D chip solutions are the industry's first to accelerate the Microsoft Direct 3D API while providing support for Intel's Accelerated Graphics Port (AGP), which is expected to emerge in 1997. The new chips enhance the user experience in applications such as games, by providing arcade quality graphics along with fast 2D and motion video. Both Laguna family members deliver more than three times the 3D performance of existing consumer market solutions.

Cirrus Logic is now shipping its first Laguna3D chip (GD5464) with the second AGP-based family member (GD5465) expected to ship in volume by Q1 97.

Cirrus Logic Inc. is a leading manufacturer of advanced integrated circuits for the desktop and portable computing, telecommunications and consumer electronics markets. The company applies its system-level expertise in digital and analog design to innovate highly integrated, software-rich solutions. -0-

Additional information about Cirrus Logic and its subsidiaries can be accessed on the World Wide Web at http://www.cirrus.com/ or via fax-on-demand at 1-800-359-6414 (dial 510/249-4200 from outside the U.S.)

All trademarks noted herein are registered to their respective owners.

CONTACT: Cirrus Logic

Tom Rigoli, 510/226-2259

[e-mail]

or

Tsantes & Associates

John Tsantes, 408/452-8700

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