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OPTi Receives Notice From NVIDIA Corporation.

PALO ALTO, Calif. -- OPTi Inc. (OTCBB:OPTI) announces that it has received a letter from NVIDIA Corporation ("NVIDIA") stating that NVIDIA has discontinued the use of the Predictive Snooping technology that NVIDIA had licensed from OPTi pursuant to the terms of the license agreement between NVIDIA Corporation and OPTi Inc., dated August 3, 2006. The letter from NVIDIA also states that NVIDIA will not be remitting to OPTi the quarterly royalty payment originally scheduled for February 2007.

The license agreement provided that OPTi was to receive quarterly royalty payments of $750,000 commencing in February 2007 and continuing as long as NVIDIA continued to use the technology up to a maximum of 12 such payments. As an alternative to the quarterly royalty payments, at any time prior to or on January 31, 2008, NVIDIA could elect to pay OPTi a lump sum of $7 million less any quarterly payments already paid. The parties had entered into the license agreement as settlement of patent infringement claims that OPTi had brought against NVIDIA.

OPTi is currently in discussions with NVIDIA as to whether NVIDIA is entitled to omit the February 2007 payment and cease future payments and has requested additional information from NVIDIA to validate NVIDIA claim that it has discontinued use of the Predictive Snooping technology.

Information set forth in this release constitutes and includes forward looking information made within the meaning of Section 27A of the Security Act of 1933, as amended and Section 21E of the Securities and Exchange Act of 1934, as amended, that involve risks and uncertainties. The amount of future payments the Company may receive from NVIDIA may differ significantly from the amounts set forth in the license agreement between the parties depending upon the outcome of discussions among the parties and NVIDIA's future use of OPTi's Predictive Snooping technology. Readers are encouraged to refer to "Factors Affecting Earnings and Stock Price" found in the Company's latest Form 10-K and 10-Q filings with the Securities and Exchange Commission.
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Publication:Business Wire
Date:Feb 5, 2007
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