SVT SHIVA, INC. AGREES TO ACQUIRE MEDIA VISION ASSETS FROM AUREAL SEMICONDUCTOR; World Class Brand Will Continue To Serve Existing & New Customers With Sound, Video and Communication Products Worldwide.

SAN JOSE, Calif.--(BUSINESS WIRE)--March 26, 1996--SVT Shiva, Inc. and its affiliates ("SVTI"), San Jose, California, and Aureal Semiconductor, Fremont, California, today announced that they have entered into an agreement whereby SVTI purchased the Media Vision trademarks and consumer product lines and related assets from Aureal. SVTI will operate under the name Media Vision Innovations, Inc. ("Media Vision") with headquarters in San Jose. Customers--current and future--of Media Vision products will receive service and support through the new Media Vision company.

Media Vision will ship six new products in the spring of 1996 in the sound, video and communications market place. The world class Media Vision brand will continue to bring state-of-the-art, user-friendly products to a broad range of users worldwide, with a concentration on the SOHO (Small Office-Home Office) and Internet users. SVTI has hardware and software capabilities, and will update selected products with Windows 95 driver software. SVTI is able to add low cost manufacturing at the highest quality levels through their manufacturing operation in Delhi, India which is ISO 9002 certified and reaches Sigma 3+ Quality levels.

"The Media Vision brand name has meant quality products for some time," said Michael Howard, president of Infonetics Research, Inc., San Jose, California. "If Media Vision can deliver quality certified technology products and service to the burgeoning SOHO market, customers will express their approval in the most complimentary manner--sales."

Distribution of the Media Vision products worldwide will be through first tier indirect channels (distributors) and through direct sales via the Internet. The Media Vision Home Page, accessed through the Worldwide Web at http://mediavis.com, will be enhanced in coming weeks to accommodate new product introductions and improved customer service. There continues to be strong customer interest in Media Vision as evidenced by an average weekly `hit rate' of 200,000 on their web site.

The Media Vision brand and related trademarks, along with product licenses, are key components of the acquisition agreement. Customer service and support responsibilities, as well as warranty protection, will be assumed by the new corporation. SVTI also has agreed to pay royalities to Aureal on future Media Vision products for a limited period of time.

Going forward, SVTI will purchase a specified amount of Aureal's initial sound-processing chip sets.

David J. Domeier, vice president of Finance and chief financial officer of Aureal Semiconductor said, "We are pleased to have agreed to pass on the highly acclaimed Media Vision brand name to SVTI. They are committed to high quality products worthy of the brand. We at Aureal will continue to focus our business on developing high performance audio solutions for the PC marketplace."

Staffing for the Media Vision effort will include some employees from Aureal in the customer support and Internet access areas, thus ensuring immediate and continual operations.

Peter Boot, will assume the role of President and CEO of Media Vision. "I am pleased we were able to match the existing product manufacturing strengths with the Media Vision brand in this business venture. We are preparing for our new product introductions, and making sure the existing Media Vision customers receive superior service and support."

Prior to joining SVTI, Mr. Boot held numerous senior positions in high technology companies including Vice President and General Manager, Ashton-Tate International Division; Vice President, International Operations at Network General Corporation and Vice President, Europe, Africa and the Middle East for Conner Peripherals Inc. He has lived and worked in the U.K., Germany, Belgium and the U.S.A. and has extensive international business experience. Mr. Boot has a B. Sc. from the University of London and a Business diploma from the University of Southern California.

"I am particularly proud to be bringing the Media Vision name to SVTI products manufactured in India," said Anil Kapuria, chairman of SVTI. "We have built a very successful business and are proud to now be the first high technology company in India to have rights to a worldwide brand name." Mr. Kapuria anticipates raising additional capital to fund growth and to attract appropriate technology and product partners.

Mr. Kapuria co-founded Silicon Valley Technology (India) Limited, the manufacturing arm of SVTI. Prior to starting this company, he had gained over 15 years of engineering and management experience in the computer and the telecommunications industries, with successful start-ups such as Tandem Computers. Mr. Kapuria also worked at established companies including Bell Northern Research/Northern Telecom and TRW. He has a Masters degree in Computer Science from the University of Birmingham, England, and has worked in England, Canada, and the U.S.

Aureal Semiconductor designs, develops and markets advanced synthesis audio solutions aimed at setting the standard for the next generation of PC sound. The company's initial products are targeted to implement physical modeling audio synthesis, FM and wavetable synthesis, true positional 3-D audio, Windows Direct Sound acceleration, digital mixing and a wide range of other soundprocessing effects and algorithms. Aureal Semiconductor is located at 4245 Technology Drive, Fremont, CA, 94538. The company's common stock is traded under the symbol MVSD on Nasdaq's OTC Bulletin Board.

SVTI has $50 million in annual hardware and software revenues and has been in operation since 1985. The company is based at 107 Bonaventura Drive in San Jose, CA, 95134. Headquarters will be relocated some time in Q2 of 1996 to accommodate the expanding Media Vision business.

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Note to Editors:

Media Vision is a registered trademark of Shiva Holdings Ltd. Aureal is a trademark of Aureal Semiconductor. Windows is a registered trademark of Microsoft Corporation. All other registered trademarks and trademarks retain the rights of their respective holders.

CONTACT: SVT Shiva, Inc.

Peter Boot, 408/428-9355

or

Aureal Semiconductor

Sher Hoff, 510/252-4582

or

Marketing/Communications

Beverly Rindfleisch, 408/432-3346