MSU Corp. licensing revolutionary new product.

CENTRAL MILTON KEYNES, U.K.--(BUSINESS WIRE)--January 7, 1997-- MSU Corporation (OTC:MUCP), the developer of the proprietary TV set top Slipstream(tm) Internet access device, announced today that it is making available for licensing the Envoy(tm), a single chip integrated CD controller and decoder solution. This is the first of a new family of products with applications in new and emerging consumer electronic markets including modem, video decompression, set-top boxes and (Digital Versatile Disk) DVD players.

The Envoy chip can operate CD-audio, CD-ROM and provide Karaoke effects, thus eliminating the need for individual chips for each of those functions. With MPEG enhancements, either an external MPEG chip or additional MPEG logic, the Envoy(tm) can play DVD (Digital Versatile Disk) disks as well. The Envoy's on-chip memory controller can drive up to 15 megabytes of external DRAM and static RAM directly. MSU knows of no comparative competition which integrates the multiple functions of the Envoy(tm) chip.

DVD is the next generation after CDs and can produce anything now on a CD with better quality. A DVD can hold up to 18 gigabytes of memory versus 650 megabytes on a CD. A DVD can also hold a single movie on a disk broadcast quality in contrast with a CD which can hold only 74 minutes of a movie, necessitating two disks, and the quality is only VHS standard.

"The Envoy(tm) was introduced to a select audience at the November COMDEX Show held in Las Vegas, Nevada and was well received," said Wyn Holloway, Chairman of the Board of MSU Corporation. "The Company is already in discussions with consumer electronic manufacturers interested in using the Envoy(tm) chip in the next generation of CD players. As Envoy(tm) expands into all CD formats, we expect the units sold annually to increase accordingly, making the market for our Envoy family even greater than that for our Slipstream technology. The total number of CD players manufactured worldwide is in excess of 120 million annually in all CD formats.

"The Envoy(tm) is doubly attractive to OEM manufacturers and distributors serving the VCD and DVD markets," added Holloway, "because the Envoy's excess processing power can also be used to provide audio decompression as well as Karaoke effects which saves the need for several more chips and eliminates several steps in the manufacturing process, thereby reducing the overall costs. As with the Slipstream(tm), MSU's latest Envoy product line, offers OEM manufacturers price, quality and competitive advantages which will allow them to gain marketshare in new cutting-edge consumer electronics applications.

"The Envoy(tm) is based upon MSU's proprietary 32 bit NVP RISC processor (NVP)," continued Holloway. "The NVP is a small, fast processor designed for embedded applications. It exploits the compactness of on-chip ROM by using a 32 bit op code to achieve a lot every clock cycle. The processor has been optimised for its first application, servo control and error correction. It is a simple task to add or remove functions to enhance performance or reduce cost. "The development of Envoy(tm) is reminiscent of the development of floppy controllers during the 80's. They started life as PCB's containing dozens of chips and ended as single chips which also included serial, parallel and other functions," said Holloway. "By replacing chips previously required to operate CD-Audio, CD-ROM and DVD with the Envoy chip, MSU is offering OEM manufacturers the opportunity to introduce new lines of versatile consumer electronic products. With just a few additional, inexpensive analog components, the Envoy(tm) can play a CD. This means control tracking and focus, decode CD data, control all of the motors and actuators in a CD player and interface directly with liquid crystal displays, push button switches and infra red remote control.

"MSU's proprietary 32 bit RISC processor considerably accelerates the Envoy(tm)'s performance," stated Holloway. "NVP's basic instruction set has been enhanced with a number of application specific extensions (ASX). By way of example, one such instruction replaces the equivalent of 19 Pentium instructions although NVP only takes up 2-3 square millimeters of silicon. These extensions dramatically increase NVP's performance. As NVP is targeted at different markets, new extensions will be added. Extensions for video decompression, animation and signal processing are in the pipeline," concluded Holloway.

The MSU Internet service processor technology and the reference design technology for the Slipstream(tm) Internet and Envoy(tm) technology are available for licensing to interested third parties. MSU Corporation designs, licenses and sells proprietary computer chips, chipsets and other products for use by OEM manufacturers of multimedia consumer and computer products.

CONTACT: MSU Corporation

Wyn Holloway, 011-44-1-203-407700

526-528 Elder Gate

UK MK9 1LR

011-44-1-908232100

011-44-1-908-231321 (fax)

Info @msu.co.

or

Forte Communications, Inc.

Patricia A. Meding

212-785-6300

212-785-6205 (fax)

[e-mail]

CompuServe: 76702,2130