S3 Partners with Corel to Showcase 3D Graphics on the Linux Desktop at CeBIT 2000.

Business Editors/High-tech Writers

CeBIT 2000

HANNOVER, Germany--(BUSINESS WIRE)--Feb. 24, 2000

S3(R) Incorporated's (Nasdaq: SIII) Professional Graphics Division and Corel Corporation (Nasdaq: CORL, TSE: COR) have partnered to showcase 3D graphics on the Linux(R) desktop at CeBIT 2000, starting today in Hannover, Germany at the S3 booth No. A43 in Hall 21 and the Corel booth No. C28 in Hall 2.

Also today at CeBIT, Dr. Michael Cowpland, Corel's president and chief executive officer, is delivering a keynote speech to identify the company's Linux strategy for the desktop. S3's Professional Graphics Division President Ian Cartwright will attend to address 2D/3D graphics-related inquiries during the question-and-answer segment following the speech.

"Last year, we began our partnership with Corel to deliver 2D graphics to the Linux desktop," said Ian Cartwright. "We are now adding 3D graphics support through our expanded driver development for the Fire GL brand and plan to continue collaborative efforts with Corel, a leading Linux developer, to bring high-performance hardware/software solutions to the Linux corporate desktop market."

"The Linux operating environment is receiving great attention from the media and leading workstation vendors," said Dr. Michael Cowpland. "Corel's development of its first Linux OS built specifically for the desktop with a full suite of applications demonstrates our commitment and we are pleased to be joined in our efforts by a leading graphics card manufacturer such as S3."

Developed in-house by S3's professional graphics division, a beta 3D Linux driver for the Fire GL1(TM) accelerator is available for download at www.firegl.com. The final 3D Linux driver is expected to be available online by April 2000. This new driver includes an implementation of OpenGL(R), also an industry open standard, as a 3D API which lays the groundwork for developers to create 2D and 3D applications for the Linux community.

The 2D Linux driver for the Fire GL1 is also available for download and both drivers will be bundled in the Corel(R) LINUX(R) OS, beginning this spring. Most graphics cards that currently support the Linux operating environment have required the assistance of third-party companies for the development of Linux drivers. The Fire GL1 drivers, developed completely in-house, support the Corel LINUX OS as well as other versions of Linux.

Featuring IBM's first graphics chipset for the Windows NT platform, the Diamond Fire GL1 accelerator delivers the first 256-bit engine for Windows NT and brings powerful graphics performance to NT workstations. Available in PCI and AGP configurations, the Diamond Fire GL1 comes with 32MB of memory and carries an estimated retail price of $699. The award-winning Fire GL brand of professional graphics accelerators (www.firegl.com) will be on display at CeBIT 2000 in Hannover, Germany from February 24 through March 1, at the S3 booth No. A43 in Hall 21.

About S3 Incorporated

Building on the technology, distribution and brand strengths of its Communications, Multimedia and Professional Graphics divisions, S3 is committed to delivering targeted products for the Personal Computer and Consumer/Internet Appliance markets. Rounding out its PC silicon offerings, S3's recent acquisition of Diamond Multimedia adds the Fire GL brand of professional graphics accelerators as well as consumer brands such as the Viper(TM) and Stealth(TM) series of graphics accelerators, the Rio(TM) series of Internet audio appliances, the Supra(TM) series of modems, and the HomeFree line of home networking products.

Except for historical information contained herein, the matters set forth in this press release, such as S3's ability to successfully promote Linux drivers for the Fire GL brand, are forward-looking statements that are subject to risk and uncertainties, including market acceptance of the products, the impact of competitive products and other risks detailed from time to time in S3's SEC reports, including its quarterly report on Form 10-Q for the quarter ended September 30, 1999.

Note to Editors: S3 is a registered trademark of S3 Incorporated. The S3 corporate logo, Diamond Multimedia, Viper, Stealth, Rio, Supra, HomeFree and Fire GL1 are trademarks of S3 Incorporated. Corel is a registered trademark of Corel Corporation and Corel Corporation Limited. Linux is a registered trademark of Linus Torvalds. OpenGL is a registered trademark of Silicon Graphics, Inc. Other marks referenced herein are the property of their respective owners.