S3 and AOpen Announce New Savage3D Accelerator Card.

SANTA CLARA, Calif.--(BUSINESS WIRE)--Sept. 22, 1998--Teaming up to deliver a high-end 3D AGP accelerator card, S3 Incorporated(R) (Nasdaq: SIII) and AOpen Incorporated today announced the Savage3D-based PA70 accelerator. Utilizing Savage3D's advanced 2D/3D engine, Microsoft-endorsed texture compression technology and full AGP 2X support, the PA70 is designed to deliver compelling content, lifelike 3D graphics, full motion video and CD quality audio performance.

"When it comes to performance, price and reliability, S3's Savage3D clearly outperforms the competition," said Harry Liu, general manager of multimedia business unit, AOpen Inc. "We look forward to a strong partnership with S3 and to delivering photo-realistic 3D capabilities to our customers."

"AOpen's expertise in PC-add-on card design combined with S3's Savage3D technology is a strong solution in today's competitive market," said Dan Karr, vice president of worldwide sales, S3 Incorporated. "We think the PA70 can be a very successful product and are pleased to be part of that success." About the PA70

AOpen's PA70 is optimized for the Pentium II processor platform with a 2x AGP set helping to heighten the visual experience for PC users. In addition to excellent graphics-enhancing capabilities, the PA70 provides optional hardware and software MPEG-2 playback, DVD and video conferencing acceleration, and integrated NTSC/PAL TV out with optional Macrovison support.

The PA70 has 8MB high-speed 100MHz SDRAM on board, and displays 32-bit true color that extends resolutions up to 1600x1200 and maximum 160Hz refresh rate on 32-bit true color, 640x480 resolution. The drivers support Window 95, Windows 98, Windows NT, DirectDraw, Direct3D, DirectX, OpenGL. Also included in the AOpen PA70 is a VMI bus connector that connects to a hardware MPEG-II daughter card to enable playback of DVD titles.

AOpen's PA70 is compatible with a variety of motherboard chipsets including Intel LX, BX, EX; VIA MVP3; SiS 5591/5595 and Ali Aladdin V. AOpen's PA70 also has a programmable onboard 1Mb of Flash ROM that allows users to upgrade the video BIOS. About S3's Savage3D Accelerator

Savage3D outperforms all shipping 3D accelerators in AGP performance, trilinear mip-mapping, texture compression and DVD/video processing. In addition, Savage3D is the first 3D accelerator to include S3 Texture Compression (S3TC), which was selected by Microsoft as the standard compression technique in DirectX. By compressing data up to 1/6 the normally required space, S3TC enables Savage3D to deliver 4X AGP performance and essentially doubles the chip's frame buffer size by allowing more textures to be stored.

Savage3D design wins have been announced by Hercules, Diamond Multimedia and STB Systems and boards are expected to be available by end of Summer. For more detailed information about Savage3D and to access detailed white papers, photos, Unreal screen shots, product sheets and press releases, log onto the S3 website at www.S3.com and click on the Savage3D logo located on the front page. About S3 Incorporated

S3 Incorporated, founded in 1989 with headquarters in Santa Clara, California, is a premier supplier of multimedia acceleration hardware and its associated software. S3 is committed to applying its expertise in 2D graphics, 3D graphics, and video to create innovative and affordable products for the home, desktop and mobile markets. About AOpen Inc.

Located in Taipei, Taiwan, AOpen is the component manufacturer of the Acer Group, the world's third largest OEM and brand name computer company. Leveraging on more than 22 years of manufacturing experience and more than 700 Group patents, AOpen provides the advanced PC motherboards, CD-ROM drives, PC housing, peripherals, multimedia and networking products for resellers, system integrators and those who value reliability, performance, and leading technologies. -----

Except for historical information contained herein, the matters set forth in this press release, such as statements relating to the market acceptance of Savage3D and PA70, Savage3D's performance, and the availability of boards using Savage3D are forward-looking statements that are subject to risk and uncertainties, including the impact of competitive products and pricing and of alternative technological advances, the ability of the company's foundries to ramp Savage3D to sustained volume production in a timely manner, market acceptance of the company's and its customers' new products, customers' product marketing timelines, and other risks detailed from time to time in S3's SEC reports, including its Quarterly Report on Form 10Q for the quarter ended June 30, 1998. S3 is a registered trademark of S3 Incorporated. The S3 corporate logo, Savage3D and S3TC are trademarks of S3 Incorporated. Other marks referenced herein are the property of their respective owners.