Fujitsu Selects S3's Savage3D for its New Line of High-End Gaming PCs.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 11, 1999--

Support from the World's Seventh Largest Supplier of PCs

Highlights Savage3D's Growing Success in the Market

S3 Incorporated (Nasdaq: SIII) today announced that Fujitsu Computers Limited has selected S3's Savage3D graphics accelerator to power its new line of high-end multimedia PCs targeted at the PC gamer. Scheduled to ship in February, the new range of high-performance multimedia PCs delivers stunning 3D graphics and DVD/video playback through S3's award-winning Savage3D accelerator.

"Fujitsu is an exciting and aggressive company and we are extremely pleased to have established a close partnership with them," said Dan Karr, vice president of worldwide sales for S3 Incorporated. "Savage3D's performance, feature set and cost structure is an ideal solution for Fujitsu's new range of multimedia PCs and we anticipate future Savage products to match nicely to their requirements as well."

"When gamers use a high-end multimedia Fujitsu PC we want them to have the most realistic gaming experience at a price they can afford." said Gunther Maass, Product Manager Consumer PCs Europe. "We chose Savage3D because it performed significantly better than competitive products and was the only chip to support Microsoft's texture compression in DirectX 6 and high quality motion compensation for DVD."

About the Savage3D Accelerator

Savage3D outperforms all shipping 3D accelerators in AGP performance, trilinear mip-mapping, texture compression and DVD/video processing. In addition, Savage3D is the first 3D accelerator to include S3 Texture Compression (S3TC), which was selected by Microsoft as the standard compression technique in DirectX. By compressing data up to 1/6 the normally required space, S3TC enables Savage3D to deliver 4X AGP performance and essentially doubles the chip's frame buffer size by allowing more textures to be stored.

Savage3D design wins have been announced by over 35 add-in card, motherboard and PC manufacturers, including AOpen, Hercules Computer Technology and STB Systems. For more detailed information about Savage3D and to access detailed white papers, photos, screen shots from Epic MegaGames' Unreal , product sheets and press releases, log onto the S3 website at www.S3.com and click on the Savage3D logo located on the front page.

About Fujitsu Computers

Fujitsu Limited is a leading provider of information technology products and solutions for the global marketplace. Founded in Japan in 1935 as a telephone equipment maker, the Fujitsu Group had consolidated revenues of $37.7 billion in the fiscal year ended March 31, 1998. With over 500 group companies, including Amdahl and ICL, Fujitsu is one of the world's largest suppliers of computers and information systems solutions, telecommunications and semiconductor products, software and services. The Fujitsu Group has 180,000 employees worldwide and operations in more than 100 countries. Fujitsu Computers is an independent company and forms part of Fujitsu's global Personal Systems operation. The company is responsible for the development, manufacture and sales of a wide range of Personal Computer and Server systems for the corporate, business and home markets across Europe. It has manufacturing and development facilities in Finland, Germany and the UK.

About S3 Incorporated

S3 Incorporated, founded in 1989 with headquarters in Santa Clara, California, is a premier supplier of multimedia acceleration hardware and its associated software. S3 is committed to applying its expertise in 2D graphics, 3D graphics, and video to create innovative and affordable products for the home, desktop and mobile markets.

Except for historical information contained herein, the matters set forth in this press release, such as statements as to future Savage products' ability to match with Fujitsu's PCs, are forward-looking statements that are subject to risk and uncertainties, including the design, competitive product, and other factors that may affect Fujitsu's decision to use future Savage products, the impact of competitive products and pricing and of alternative technological advances, market acceptance of the company's and its customers' new products, and other risks detailed from time to time in S3's SEC reports, including its Quarterly Report on Form 10-Q for the quarter ended September 30, 1998. S3 is a registered trademark of S3 Incorporated. The S3 corporate logo is a trademark of S3 Incorporated. Other marks referenced herein are the property of their respective owners.