Denon Nippon Columbia Co. and MasPar Computer Corporation Introduce MPEG-1 MPEG-2 Video Encoding Systems.

SAN FRANCISCO--(BUSINESS WIRE)--Feb. 8, 1995--Denon/Nippon Columbia Co. Ltd. and MasPar Computer Corporation introduced today a professional quality, high-performance video encoding system suitable for MPEG-1 and MPEG-2 international video compression standards and targeted at high-end post-production houses and packaged media producers.

Denon and MasPar have been jointly developing the software encoding system for the past year. The MPEG encoding system integrates the Denon MPEG video compression algorithm, video and audio merging technology with MasPar's scalable high performance computer. The MasPar system provides up to 68,000 MIPS of processing power and high performance data input and distribution of up to 1 Gigabyte/second. This very high performance allows the system to implement sophisticated and adaptive compression algorithms in software.

The MPEG encoding system employs preprocessing and psycho-visual enhancement algorithms licensed from PRISM Interactive Corporation, a multimedia and compression technology development company located in Wheaton, Illinois. These algorithms result in significant motion picture quality improvements for the Denon/Nippon Columbia/MasPar MPEG encoding system.

Denon has purchased three MasPar systems, which are currently being employed in both Japan and the United States to produce video-CDs based on the MPEG-1 standard. Denon and MasPar plan to market the MPEG encoding system and associated services initially in Japan and the US, then to the rest of the world markets.

The Denon/MasPar video encoding system will be commercially available in June 1995. Entry level pricing for a complete system starts at $600,000, which includes the MasPar scalable computer, encoder software, as well as the video and audio capture hardware.

Key features of the Denon/MasPar software-based encoding system include:

-- Upgradable from MPEG-1 to MPEG-2 on the same MasPar platform.

-- Psycho-visual enhancements based on unique algorithms and special processes achieve superior quality digital video suitable for professional application.

-- Development environment for other compression technologies and

video effects.

-- Algorithm enhancements, changes in industry standards, and adaptations to special user requirements or decoder characteristics are easily accommodated.

Denon and MasPar are nearing the completion of an MPEG-2 encoding system which they expect to introduce later in 1995. In conjunction with the emerging universal digital video disc (DVD) format, this system will allow production of superior quality packaged media digital video movies for consumer use.

MasPar Computer Corporation, headquartered in Sunnyvale, California, markets high performance scalable computers, using thousands of processors working in unison. MasPar has shipped over 240 revenue systems since introduction in January 1990. MasPar products are used extensively in industry for data-intensive applications ranging from decision support/data warehouse to computational biology applications.

Headquartered in Akasaka, Tokyo, Japan, Nippon Columbia, traded on the Tokyo Stock Exchange, is an 84 year old audio-visual technology company. Products and services are known under the brand names of Denon abroad and Columbia in Japan. As a music recording and multi media engineering company, Nippon Columbia was a pioneer in the development and manufacture of digital audio and video CD media and playback hardware. The Denon consumer electronics products are known throughout the world for their sophisticated design and high level of performance. Denon produces classical and jazz recordings in various locations throughout Japan, Europe and the United States. Denon sales offices are located in major cities worldwide.

PRISM Interactive Corporation, founded in 1989 by Dr. Richard Bruno, a former Philips Electronics N.V. executive, is a development and licensing company for digital audio and video signal processing, restoration and compression technology. PRISM has refined compression methods compatible with MPEG which achieve significant audio and video quality improvements for use on new compact discs.

CONTACT: MasPar Computer Corporation

Scott R. Humphrey, 408/736-3300

Denon/Nippon Columbia

Almon H. Clegg, 404/663-0654