Yamaha Takes Stake in American Software Venture Staccato Systems, Inc.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Sept. 3, 1997--

Electronic Sound Source Sondius-XG Licensed

Music Software Under Development

Yamaha Corporation, the world's largest manufacturer of musical instruments, today announced a $1 million investment in Staccato Systems, Inc., a developer of music software located in Mountain View, California.

Staccato Systems is developing a computer music application that is based on a format developed and advanced by Yamaha,headquartered in Hamamatsu, Shizuoka Prefecture, that will allow the creation of highly expressive musical sounds on personal computers.

"The technical prowess of Staccato Systems was a primary factor behind our decision to directly invest in the company," said Yamaha president Kazukiyo Ishimura. "We are confident that our financial support will help to further promote the spread of the XG format and Sondius-XG technologies," Mr. Ishimura added.

The XG format is Yamaha's sound source format for electronic instruments that was developed to achieve data compatibility and a greater degree of expressiveness in musical sound. In July 1997 Yamaha and Stanford University began licensing their electronic sound source know-how under the Sondius-XG joint licensing program which grants developers the use of technology essential when patenting and commercializing XG format-compatible sound source products.

Staccato Systems is a venture business founded at the end of 1996 by members of the team that worked on the research and development of the physical modeling sound source, the core of Sondius-XG. Staccato Systems, Inc. was the first company to obtain a licence under the Yamaha-Stanford University collaborative program.

"We are delighted that Yamaha has an equity interest in Staccato, and very pleased to be promoting the XG format and Sondius-XG technologies," said Staccato Systems president Joseph M. Koepnick. "We believe that the XG format and Sondius-XG is the future of synthesized sound, whether it be for karaoke, computers, internet applications or games. We think consumers are really going to like what they hear in the very near future."

Sondius-XG enables the creation of realistic, richly expressive sound source systems for musical instruments, karaoke, game machines, computers, and other multimedia tools. The sound source system can be used not only with dedicated hardware incorporating special LSIs, but also on computers with high-speed processors.

Under the Sondius-XG licensing program, Staccato Systems is currently developing an XG software synthesizer that it plans to market next spring. With this software synthesizer, users will be able to enjoy rich and vibrant musical sounds on their personal computers without need of special hardware. Sound with a concert-hall presence and innovative music that had previously been impossible to reproduce will enhance enjoyment of the Internet, game software and other multimedia activities.

"Staccato Systems' technical capability, combined with the use of patents granted under the Sondius-XG licensing program and back-up from Yamaha in product development, promises excellent products that support the XG format," said Yamaha president Ishimura. "For our part, Yamaha will continue to push ahead in development of our own new products while supporting other companies working to popularize the XG format and Sondius- XG," he added. -0-

Background:

Profile of Staccato Systems, Inc.

Name: Staccato Systems, Inc. Location: 286 Carmelita Drive, Mountain View, CA 94040 Founded: December 20, 1996 President: Joseph M. Koepnick Business: Development and marketing of computer software Capital: US $1,537,000 Employees: 5 -0-

Note 1: XG format

A sound source format for electronic instruments developed and advanced by Yamaha to achieve data compatibility and a greater degree of expressiveness in musical sound. XG features tone arrangement and modification, a variety of musical effects, and external input designed for expandability.

Note 2: Sondius-XG

A licensing program that grants the use of over 400 patents and patent applications covering Stanford University's basic physical modeling sound source patents and development tools, and Yamaha's physical modeling sound source, WaveTable sound source and XG format patents, and the technical know-how essential for product commercialization. The license enables development of products that support XG format and use physical modeling sound source and WaveTable sound source technologies.

Note 3: Physical modeling sound source

A sound source system developed by Stanford University that reproduces the natural physical sound generation of instruments by simulating the sound through computer processing. Unlike WaveTable, a sound source system that reproduces digital recordings of the natural sounds of currently popular instruments that are stored in the computer's memory, physical modeling allows control of such elements as breath, bow pressure, and other fine adjustments to achieve enhanced musical expressiveness.

Sondius-XG is a jointly held trademark of Stanford University and Yamaha Corporation. Sondius is a registered trademark of Stanford University. The XG logo is a registered trademark of Yamaha Corporation. Windows and Macintosh are trademarks or registered trademarks of their respective owners.

CONTACT: Editorial Information

Kyoko Fujii

email: [e-mail]

or

Technical Information, Sondius-XG

Goh Futamase, Yamaha Corporation

email: [e-mail]

or

Staccato Systems Information

Joseph Koepnick, 650/325-6905

email: [e-mail]