DVMatics Software Suite Revolutionizes Audio, Video on PC.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 12, 2000

Mediamatics, a division of National Semiconductor (NYSE:NSM), today announced the DVMatics(TM) entertainment software suite, a complete family of audio and video software for recording, viewing, and editing files on Microsoft Windows-based PCs. This new product suite will strengthen Mediamatics' position as the number one supplier of DVD software for the PC.

DVMatics is a software-only entertainment suite that enables Windows-based PC platforms to provide a complete set of digital audio and video features in a unified all-in-one application. The suite is available in a variety of packages that provide DVD, VCD and SVCD playback; PVR (personal video recording); analog and digital TV (both DTV and HDTV) viewing; video editing; and DVD/web authoring. The complete DVMatics package also features a robust audio entertainment suite that includes CD conversion and MP3 encoding, MP3 playback, karaoke mixing and a variety of audio effects.

"The introduction of DVMatics will revolutionize what consumers can do with audio and video on their home computer," said Pier Del Frate, vice president of the PC software product line for Mediamatics. "Until now, computer manufacturers have had to go to multiple vendors to get DVD playback, video editing and home DVD authoring software packages. Users typically have to learn three different products before they can perform simple tasks with their home videos; DVMatics presents home computer users with multiple functions and a very simple and consistent user interface in one package.

DVMatics will be marketed to computer manufacturers and other third party companies who will bundle DVMatics in their own product and market it to PC makers or through retail channels. DVMatics is available as a complete suite or in five smaller components.

-- DV Television -- MPEG1 and MPEG2 encoding and decoding, time-shifting, HDTV,
standard TV (analog and digital)

-- DVMatics Producer -- video and audio encoding, recording, decoding, editing
and authoring in DVD and HTML formats with navigation menus

-- DVMatics DVD -- DVD, VCD, SVCD, updated GUI and skins (replaces current DVD
Express offering), audio effects that includes Dolby AC-3, Dolby Headphones and
others.

-- DVMatics Audio -- MP3, Karaoke, Dolby Headphones, 3D audio, DVD Audio, DTS

-- DVMatics Express -- MPEG 1&2 video and audio decoders

DVMatics DVD and DVMatics Express are currently shipping. DVMatics Producer, Television, and Audio packages will be available to ship to customers in early 2001.

The DVMatics Producer application is a first in the market: it combines the software necessary to record, edit and author video with navigation menus into DVD or HTML formats. This unified package is beneficial to manufacturers because it saves them time, effort and cost of integrating and shipping multiple products from different vendors, as well as eliminating issues of software incompatibility.

"The market for digital processing in DTV, HDTV, DVD and the new class of consumer audio products is exploding in both consumer and PC segments," said Dr. Jon Peddie, president of Jon Peddie Associates, the leading market research company tracking digital media. "We believe the Entertainment PC, with its ability to handle multiple media streams, will be one of the leading platforms in this market expansion. The DVMatics software suite will position Mediamatics to leverage its already strong presence in the PC entertainment software market by providing a single source for all of the many functions now called for to support a rich digital experience."

Continuing the convergence of entertainment devices and the PC, DVMatics Television offers an affordable alternative to viewing HDTV and DTV broadcasts. It can decode inputs from TV/HDTV tuners, cable, broadcast, satellite, composite and S-Video sources. The software supports all 18 Advanced Television Systems Committee (ATSC) video display formats; most PC screens today provide the high resolution recommended for optimal HDTV clarity.

"B2C2 has been using Mediamatics' software to provide Digital TV playback from digital video broadcasts (DVB) on our shipping systems " said Edward Bach, President and CEO of B2C2. "We are looking forward to using the new DTV capabilities that have been added to the DVMatics product."

Mediamatics has worked closely with industry software and hardware leaders to develop and support standards and is recognized for its software expertise. DVMatics fully implements the Microsoft's DirectX VA standard for video acceleration and is fully compatible with Microsoft's Digital TV architecture. Its video and audio decoders have been widely certified by Microsoft's WHQL. Microsoft Corp. selected Mediamatics' audio and video decoder technologies for the Microsoft digital TV technology demonstrations at the Western Cable Show two weeks ago. Mediamatics also has worked closely with several leading hardware makers, including receiver manufacturers Broadlogic and Conexant; Stream Machines, a designer of USB and PCI TV tuners and MPEG encoders; and tuner card manufacturer ATI.

Mediamatics has the leading market share in the PC DVD entertainment software market from its existing DVDExpress and MPEGExpress products, with a customer list that includes IBM, Sony, Toshiba, Compaq, HP, and Acer. All Mediamatics DVD software programs support the six programming regions and 24 languages.

About Mediamatics

Mediamatics, a division of National Semiconductor Corporation, delivers consumer quality digital video and audio hardware/software solutions for the consumer, PC and convergence markets. Mediamatics' software and system expertise is integrated into the emerging home entertainment market comprising of entertainment PCs and DVD players. Its software products are licensed by Microsoft and major PC OEM manufacturers, making Mediamatics the world's largest supplier of MPEG products. www.national.com/appinfo/dvd.

Note to Editors: DVMatics is a trademark of National Semiconductor Corporation. All other brand or product names are trademarks or registered trademarks of their respective holders.