National Semiconductor and Planetweb Introduce Industry's First iDVD Reference Design; Partners Are in Place to Ship First iDVD Products in Q1 of 2000.

Business Editors and Technology/Entertainment Writers

CES 2000

LAS VEGAS--(BUSINESS WIRE)--Jan. 7, 2000

National Semiconductor Corporation (NYSE:NSM) and Planetweb(R), Inc. today announced the industry's first reference platform for an Internet DVD (iDVD) player.

Based on Planetweb software and National(R) Mediamatics(R) Pantera-DVD hardware, the new iDVD reference platform can deliver advanced DVD features, personalized entertainment content, Internet browsing, email and more. The iDVD platform is on display through January 9 at the 2000 International CES, located in the North Hall of the Las Vegas Convention Center, booth 6728 and room M5676.

By developing a complete reference platform, National and Planetweb are enabling consumer electronics manufacturers to reduce their overall design and development costs and shorten their time-to-market for iDVD players. National and Planetweb already have several ISPs who plan to introduce subsidized iDVD players in early 2000, including Favorite On Line and eHOLA.com, and manufacturers such as RAITE, Lucus Origin and TCL A/V Corporation are already producing these devices.

"With shrinking product life cycles, accelerated growth and intense competition in the DVD space, many OEMs are demanding out-of-the-box solutions," said Prem Nath, president of National's Mediamatics group. "Because of the combined strengths of our software-hardware partnership, National and Planetweb can offer our customers complete solutions that allow them to differentiate their products from those of their competitors."

The iDVD Market

The market for consumer DVD players has steadily grown over the past few years, and National and Planetweb expect iDVD technology to further accelerate consumers' adoption of DVD. The Consumer Electronics Association estimates that nearly 4 million DVD players were sold in 1999, and Cahners In-Stat Group expects DVD player shipments will double in 2000. The number of players sold since DVD's introduction in 1997 has already surpassed the sales figures for both VCRs and CD players during their comparable debut periods, making DVD one of the most rapidly-adopted entertainment technologies of the last 25 years.

"Considering that current DVD market projections don't account for Internet functionality, we believe these figures are somewhat conservative," said Jan Gullett, CEO of Planetweb. "iDVD players could account for 25% of the overall DVD market in 2000, growing to as much as 50% by 2002. And when convergence features like time shifting and recording are integrated into players, the iDVD market could really take off."

National and Planetweb's iDVD reference platform delivers the first truly interactive experience on a consumer DVD player, enabling consumers to take full advantage of the embedded content and features that are already available on many DVDs today. These features can include behind-the-scenes commentary from actors and directors, access to movie scripts and storyboards, links to a film's or studio's Web site, the ability to view multiple camera angles, screen shots and endings, and more. The iDVD platform also delivers personalized entertainment content to users -- content that's based on the CDs they listen to and the DVDs they watch. By providing users with this personalized data, the iDVD player allows them to cut down on the time they spend searching the Internet for relevant information.

"The Internet has really changed all of our lives, it's literally placed a whole wealth of information at our fingertips," said Jan Gullett, CEO of Planetweb. "But locating the information we want is like finding a needle in a haystack, which is what led us to develop the concept of `inverting the Web.' We can provide users with information and entertainment that targets their specific interests, saving them from spending countless hours surfing the Internet."

The iDVD Platform

National and Planetweb's iDVD platform, based on the Mediamatics Pantera-DVD chip and Planetweb's software, is a worldwide solution that's compatible with both the PAL and NTSC viewing standards. This allows manufacturers to design iDVD players for several different global markets with only minimal changes to the system's design. The platform is fully compatible with all DVD specifications, CDDA, Video CD and China's emerging SuperVCD format. The iDVD platform features a karaoke function, a 56k v.90 internal modem, a wireless infrared keyboard with integrated mouse, and optional six channel audio.

The Mediamatics Pantera-DVD chip is a prime example of National's commitment to bring higher levels of integration to the marketplace with system-on-a-chip technology. Utilizing its hardware and software design expertise, Mediamatics has integrated all the hardware and software needed to control a DVD player's back-end functions into a single chip, creating a unique total system solution that delivers the high-quality playback demanded by the most discriminating consumers.

Planetweb's Internet software engine can be configured to be ISP-independent, with an ISP default, or as an ISP-specific design. Its small footprint (approximately one half Megabyte) facilitates integration, and it supports Web browsing and email with any standard ISP. Planetweb's television display technology includes easy to read anti-aliased outline fonts, two-stage flicker reduction, a one-pass Web site layout engine for fast navigation, and Web site enhancement technology. The software is designed to be consumer-intuitive, with features such as bump scrolling, a one-touch command compass and a patented two-step magnifier. The software also offers a unique Parental Control Web site application that can be set on a scale consistent with the user's value system.

About Planetweb

Planetweb is the industry volume leading producer of Internet software designed for consumer electronics devices. The company gives consumers a complete Internet experience on devices like game systems, iDVD players, set-top boxes and phones. Planetweb is recognized for its cost effective and efficiently designed Internet software solution, superior display technology, Java multimedia technology, consumer-intuitive interfaces and powerful portal infrastructure. Planetweb, a pre-IPO Internet software company, is headquartered in Mountain View, Calif., and has offices in Tokyo, Japan. Planetweb is available on the Internet at www.planetweb.com.

About Mediamatics

Mediamatics, a wholly owned subsidiary 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. Visit Mediamatics on the World Wide Web at: http://www.mediamatics.com.

About National Semiconductor

National Semiconductor provides system-on-a-chip solutions for the information age. Combining real-world analog and state-of the-art digital technology, the company's chips lead many sectors of the personal computer, communications, and consumer markets. With headquarters in Santa Clara, California, National reported sales of $2 billion for its last fiscal year and currently has about 11,000 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com.

National Semiconductor and Mediamatics are registered trademarks of National Semiconductor Corporation. The Planetweb Browser is a registered trademark of Planetweb, Inc. All other brand or product names are trademarks or registered trademarks of their respective holders.