NeoMagic Brings First 128-Bit Graphics Performance to Mobile Computers; New Company is First to Integrate Logic and Memory; Single-Chip Solution Achieves Desktop-Level Performance on Mobile PCs, Lowers Cost & Power Consumption.

SANTA CLARA, Calif.--(BUSINESS WIRE)--March 6, 1995--Start-up company, NeoMagic Corporation, announced today the first single-chip graphics solution that will provide next-generation notebook computer users with graphics performance exceeding some of today's advanced desktop PCs, at a lower total cost than 64-bit desktop accelerator solutions. The new chip series, called MagicGraph, also reduces by over 50 percent the battery power required to operate a notebook computer graphics subsystem, and replaces current notebook graphics solutions that require the cost and size of three to four chips.

Founded less than two years ago, NeoMagic is the first company to achieve the long-awaited integration of complex logic and DRAM memory in a single-chip solution. Based on this breakthrough integration technology -- called MagicWare -- NeoMagic's first products address the need for higher performance graphics in notebook PCs. NeoMagic also plans to apply its unique integrated technology to other mobile computer subsystems, including communications and storage.

Mobile computers based on conventional 32-bit mobile graphics solutions are unable to exploit the full power of today's advanced microprocessors, such as the Intel 486-DX4 and Pentium, and do not accelerate Windows applications and motion video enough to satisfy end-users. "NeoMagic's goal is to help create better mobile computers for end-users by eliminating the compromises and trade-offs mobile design engineers must make," said Prakash Agarwal, co-founder, President and Chief Executive Officer of NeoMagic. "By achieving the technical breakthrough of integrating logic and memory, we have broken the greatest bottleneck in mobile computer design, which is the tremendous performance disparity between today's most powerful microprocessors and current peripheral subsystems. Our technology will help create an entirely new generation of mobile computers that are more powerful, more portable, operate significantly longer, and are cost-effective."

NeoMagic Breaks Bandwidth Bottleneck With 128-Bit PC Graphics

NeoMagic's first product, the MagicGraph NM2070, is the first solution to bring 128-bit graphics to the mobile personal computer market, providing more than four times the memory bandwidth typically found in notebook systems today and twice that in mainstream desktop PCs. When implemented in a notebook PC, this high bandwidth will provide users with the same graphics response times as desktop PC's, even when using larger resolution display monitors or LCD screens, and more color depths. The NeoMagic chip achieves this performance with less cost, less power consumption, and smaller footprint than any 64-bit discrete DRAM implementation on mobile or desktop computers today. The NM2070 combines all of the functions needed for mobile computer graphics: a Super VGA graphics accelerator, PCI and VESA Local-bus interfaces, RAMDAC, frequency synthesizer, LCD controller and the equivalent of 1 Megabyte of graphics DRAM memory on a single integrated chip. A video port, based on the VAFC standard is provided on the chip for real-time video input. Replacing 3 to 4 large discrete chips, MagicGraph's single-chip advantages for PC end-users include highest performance, longest battery life, highest portability (size and weight), and lowest total system cost compared to any 64-bit graphics solution.

High Performance

With NeoMagic's integrated 128-bit memory architecture, the performance bottleneck of today's 32-bit accelerators on notebook computers is eliminated. "New operating systems are bringing more ease of use, more robust communications and more demanding applications to all PCs," said Carl Stork, Director for Windows Hardware Programs at Microsoft Corporation. "Customers want to use mobile systems that have the function and performance of desktop systems. NeoMagic has developed enabling technology which brings desktop performance to mobile systems." The NeoMagic solution exceeds 64-bit desktop accelerator memory bandwidth levels by 2X, and exceeds current-generation mobile accelerators by over 4X. MagicGraph achieves this higher bandwidth performance at a lower total board space, with lower power consumption, and better cost-performance than any other accelerator solution.

Increased Battery Life

With previous mobile graphics controllers, either performance, battery life or weight was compromised in notebook designs. "Today's notebook user wants the largest, fastest display possible and wants longer battery life with lighter weight all at the same time," said Frank Schneider, Group Vice President of flat-panel maker Sharp Electronics Corporation. "NeoMagic's MagicGraph not only improves the system performance but also significantly reduces the power requirement, thereby both extending battery life and reducing weight." With NeoMagic's single-chip solution, overall power consumption is reduced over 50% relative to DRAM-based LCD controller implementations. This power savings, along with the overall savings achieved with next-generation LCD screens and low-power CPU's, will help extend the useable battery life of notebook computers.

Higher Portability

Single-chip integration offers dramatic space-savings benefits to the mobile designer. Memory and logic are integrated into one small 176-pin package, providing better than 60% space savings of any other solution. This space savings can be used by system designers to add additional features to a notebook, such as PCI or connectivity, without compromising the size of the mobile system.

Lower Total Cost than any 64-bit Graphics Implementation

The MagicGraph NM2070 provides better performance than most 64-bit mainstream graphics accelerators for the desktop. Although there are no 64-bit graphics solutions available for mobile computers, the MagicGraph total solution cost is less than the total cost of most mainstream 64-bit desktop accelerator solutions. The cost-effectiveness of the MagicGraph NM2070 achieves more than 5X better cost-performance ratio than today's 32-bit graphics accelerators.

"People today want performance parity between their desktop and mobile systems, and current notebooks can't match the graphics performance of the 486-DX4, let alone Pentium PCs," said Tim Bajarin of Creative Strategies. "For the serious mobile PC user, NeoMagic is bridging the gap between desktop and mobile graphics, allowing mobile system designers to take full advantage of today's most powerful microprocessors."

The MagicGraph NM2070 will be available in April with a sample quantity unit price of $85. Volume production is scheduled to begin in the third quarter of 1995. Production volume pricing will be below $75 per unit. The company expects the first mobile products using MagicGraph to be announced this Fall and the company has secured semiconductor manufacturing capacity to accommodate the expected demand.

Seasoned Team Forms Hot New Semiconductor Firm

Founded in the Summer of 1993 by a group of seasoned Silicon Valley entrepreneurs and executives with years of directly related experience in mobile computing, PC system logic, graphics, and memory technology, NeoMagic is led by co-founders Prakash Agarwal, President and CEO, and Kamran Elahian, Chairman. Agarwal was previously Vice President and General Manager of the Portable Products Group at Cirrus Logic, Incorporated, and Elahian was most recently founder and President/CEO of mobile computer maker Momenta, Corporation. He previously was a co-founder of Cirrus Logic and founder of CAE Systems.

The Company has secured $11 million in venture capital funding from leading venture firms, including Kleiner, Perkins, Caufield & Byers, Sequoia Capital, US Venture Partners and Japan Associated Finance Co., Ltd. (JAFCO).

NeoMagic Corporation, based in Santa Clara, CA, is dedicated to bringing the performance of desktop computers to mobile PCs. The first company to integrate memory and complex logic in a single-chip, NeoMagic's first product, the MagicGraph NM2070, is the first to bring 128-bit graphics to the PC market, enabling mobile computer suppliers to design next-generation mobile systems with graphics that exceed today's most advanced desktop PCs.

-0-

Note to Editors: NeoMagic, MagicGraph, and MagicWare are trademarks of NeoMagic Corporation. Other notations of (tm) or (r) are trademarks of their respective firms. VAFC represents VESA Advanced Feature Connector VESA represents the Video Electronics Standards Association VGA represents the Video Graphics Array SVGA represents Super Video Graphics Array PCI represents Peripheral Component Interconnect RAMDAC represents Random Access Memory/Digital to Analog Converter DRAM represents Dynamic Random Access Memory PC represents Personal Computer LCD represents Liquid Crystal Display 

CONTACT: NeoMagic Corporation, Santa Clara

Rick Calle, 408/988-7020 xt 242

Copithorne & Bellows PR

Lisa Kimura, 415/284-5200 xt 209