Kenwood Selects Sage's FLI2200/2220 Display Processor Products for 2001 Progressive Scan DVD Players and DVD Changers.

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--Feb. 28, 2001

Powered by Sage Deinterlacer and Video Enhancer, Kenwood's DVD 

Players and Changers Offer Significant Video Advancements

Sage Inc. (Nasdaq:SAGI), a leading provider of digital display processors for consumer technology and PC-display products, today announced that Kenwood Corporation, a leading manufacturer of audio and video products, has selected the Sage FLI2200 deinterlacer and the FLI2220 digital video enhancer for use in its 2001 model-year progressive scan DVD players and DVD changers. Kenwood was able to achieve a higher quality video in their DVD players and changers by implementing Sage's award-winning video processing technology, thus enabling the highest video quality at reduced system costs.

"The performance and quality of the Sage deinterlacer and video enhancer give our progressive scan DVD players superior video performance," stated Bob Law, vice president of Kenwood USA Corporation. "We were impressed by the ability of Sage's Directional Correlational Deinterlacing technology to produce smooth, natural images and eliminate the staircasing and jaggies produced by all other deinterlacing technologies."

The FLI2200 is the world's first 10-bit single-chip motion adaptive deinterlacer that incorporates recently acquired Faroudja Laboratories' Emmy award-winning de-interlacing and post-processing algorithms to convert standard interlaced video signals into progressive scan signals. Deinterlacing provides markedly improved video quality in a variety of consumer technology and PC-display products ranging from DVD players and TVs to flat-panel monitors. The FLI2200 boasts a number of industry-first features including proprietary Directional Correlational Deinterlacing (DCDi(TM)). The DCDi algorithm eliminates the jagged edges seen on moving angled lines in video images. Other advanced performance capabilities include motion adaptive deinterlacing with optimal filtering on a per pixel basis and motion adaptive cross color suppression. It also features film mode for proper handling of 3:2 and 2:2 pulldown as well as bad edit detection/correction, technologies invented and patented by Faroudja Laboratories. The FLI2200 supports 8/10-bit ITU-R BT656, 16/20-bit YUV and 24/30-bit RGB, YCrCb and YPrPb interlaced inputs and progressive outputs with auto-detection of NTSC/PAL/SECAM inputs.

The FLI2220 video enhancer, unlike conventional video sharpening circuits, enhances the image both horizontally and vertically to create the clearest possible image. The patented non-linear algorithms enhance the small details and colors in images, and improve depth perception by sharpening large edges without introducing visual artifacts or distorting the image.

"Selection of the FLI2200 and FLI2220 by Kenwood, a leading manufacturer of audio and video products, reaffirms the unparalleled picture quality and value offered by the entire product family," said Dr. Nikhil Balram, vice president and general manager of consumer products at Sage. "With proprietary features such as DCDi, film mode and the non-linear algorithms of the video enhancer, the FLI product family offers unrivaled video quality based on the strong Faroudja patent portfolio and its long history of video excellence. Kenwood's selection of the deinterlacer and enhancer chip set is another important design win that continues the momentum Sage is realizing with the entire product family," added Balram.

According to CIBC, the overall DVD market is expanding rapidly and is estimated to grow from thirty-one million units in 2001 to seventy-one million units in 2004. "With the rapid market growth, we expect progressive scan DVD players, progressive scan DVD changers and progressive scan TVs to provide a significant market opportunity for the FLI product family," added Balram.

The new Kenwood progressive scan DVD players and changers will be available worldwide in the second half of 2001.

About the Companies:

Kenwood

As a leading manufacturer of home and car audio components, car navigation systems, mobile phones, and communications systems, KENWOOD is boundless in its exploration of the information technology era. With its newly developed digital products, KENWOOD readily accommodates today's PC-oriented lifestyles to satisfy users around the world.

Sage

Headquartered in Milpitas, Calif., Sage Inc. (Nasdaq:SAGI) is a leading provider of digital display processors, enabling superior picture quality for a variety of consumer technology and PC-display products ranging from web appliances to TVs and flat panel monitors. Through its recent acquisition of Faroudja Laboratories, the Company also provides high-end home theater equipment providing unrivaled pictured quality, and digital broadcast upconverter products that provide a range of modular solutions for broadcasters, cable and satellite services. Leveraging Emmy-award winning Faroudja technology, Sage is developing products that bring the home theater experience to the mass consumer and PC-display market through digitally enhanced television, projection displays, DVDs and internet appliances. The Company's systems-on-a-chip technology provides highly integrated mixed signal and system functionality with higher picture quality than lower-quality processors at a similar component cost. Sage's display processors, which include Faroudja digital video processors, are used by world-renowned consumer electronics manufacturers such as Compaq, Fujitsu, Hyundai, LG, NEC, Samsung, Sanyo, Sony and Toshiba. More information about Sage can be found on its web site at www.sageinc.com; the Company may be contacted directly at 408/519-6500.

For a discussion of factors that could cause actual results to differ please see the publicly available SEC filings of Sage including its 10K for the year ended March 31, 2000 and particularly the discussion of risk factors within such documents.

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