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NINTENDO AND SILICON GRAPHICS JOIN FORCES TO CREATE WORLD'S MOST ADVANCED VIDEO ENTERTAINMENT TECHNOLOGY

 SAN FRANCISCO, Aug. 23 /PRNewswire/ -- Nintendo, the world leader in video games, and Silicon Graphics, Inc. (NYSE: SGI), the world leader in visual computing, today announced an agreement that will transform video entertainment by developing a truly three-dimensional, 64-bit Nintendo machine for home use. Nintendo's "Project Reality" is the first application of Reality Immersion Technology, a new generation of video entertainment that enables players to step inside real-time, three- dimensional worlds.
 The worldwide Joint Development and License Agreement teams Nintendo's industry-leading expertise in video game development with Silicon Graphics' renowned visual computing technologies that enabled filmmakers to create the unprecedented special effects for such movies as "Terminator 2" and "Jurassic Park."
 The product, which will be developed specifically for Nintendo, will be unveiled in arcades in 1994, and will be available for home use by late 1995. The target U.S. price for the home system is below $250.
 The "Project Reality" effort will create Nintendo's next-generation system featuring realistic graphics, high-fidelity audio and record- setting speed. At the heart of the system will be a version of the MIPS( Multimedia Engine, a chip-set consisting of a 64-bit MIPS RISC microprocessor, a graphics co-processor chip and Application Specific Integrated Circuits (ASICs). For the first time, leading-edge MIPS RISC microprocessor technology will be used in the video entertainment industry creating new levels of speed, realism and excitement. The graphics co-processor and ASICs provide the specialized audio, video and graphics capabilities. The same MIPS RISC microprocessor family today powers computers ranging from PCs to supercomputers.
 "People's imaginations are fueled by visual imagery," said James Clark, chairman of Silicon Graphics. "The same principles that enable the world's leading scientists and engineers to visualize complex information will revolutionize video entertainment in the home. Together, Silicon Graphics and Nintendo make a dramatic step forward in this mission."
 The Joint Development and License Agreement represents a long-term, worldwide business relationship between Nintendo and Silicon Graphics. Under the agreement, Nintendo will pay Silicon Graphics royalties for use of the licensed 3D technology. This unique product will be available specifically from Nintendo. Application software will be supplied by Nintendo and its current and future authorized licensees.
 "We have always said we will only introduce new hardware when it delivers dramatically improved value for our customers," said Howard Lincoln, Nintendo's senior vice president. "Our work with Silicon Graphics enables us to actually skip a generation by driving straight through to true 64-bit, 3D video entertainment. Nintendo's 'Project Reality' dissolves the current limits of video play, causing the world to challenge its notion of what a video game can be." Reality Immersion Technology
 Reality Immersion Technology uses the world's most advanced graphics and computing capabilities to allow video game players to directly and intimately interact with virtual game environments. This new generation of entertainment creates infinitely evolving worlds that instantly and continuously react to the commands and whims of the individual players. With Reality Immersion Technology, video game players, for the first time ever, actually become part of the game itself.
 "By pooling the best and brightest talent from both our companies, 'Project Reality' will propel Silicon Graphics' leading digital media technologies into homes everywhere," said Edward R. McCracken, president and CEO of Silicon
Graphics. "Nintendo's financial and technical investment combined with Silicon Graphics' engineering resources will enable our two companies to continue leading the visual computing and home entertainment industries in the '90s."
 "The Nintendo name is synonymous with the very best in video game entertainment," said Lincoln. "While Nintendo continues to be excited with the tremendous untapped potential of our current NES(R), Game Boy(R) and 16-bit Super NES(R) platforms, today's announcement unveils a whole new future dimension in video entertainment."
 Silicon Graphics' recently introduced Indy(TM) desktop computer provides an ideal authoring system for current Nintendo developers wanting to create applications for the "Project Reality" platform. Indy also supports the Indigo Magic(TM) user environment, the world's first Media User Interface (MUI), a media-rich, point-and-click interface that will enable developers to further enhance their home entertainment software.
 Nintendo is the worldwide leader in the manufacture and marketing of home video systems, having sold more than 100 million hardware systems and three-quarters of one billion game paks in a little more than a decade's time. Its most popular character, Mario the plumber, alone has sold more than 100 million game cartridges and is recognized by more American children than any other animated character.
 Silicon Graphics, Inc. is the leading manufacturer of high- performance visual computing systems. The company delivers interactive three-dimensional graphics, digital media and multiprocessing supercomputing technologies to technical, scientific and creative professionals. Its subsidiary, MIPS Technologies, Inc., designs and licenses the industry's leading RISC processor technology for the computer systems and embedded control markets.
 Silicon Graphics, Silicon Graphics logo are registered trademarks and Indy and Indigo Magic are trademarks of Silicon Graphics, Inc. MIPS is a registered trademark of MIPS Technologies, Inc. Nintendo, the Nintendo logo, NES, Super NES and Game Boy are registered trademarks of Nintendo.
 -0- 8/23/93
 /CONTACT: Jill Grossman, Silicon Graphics, media, 415-390-1516 Marilyn Lattin, Silicon Graphics, financial, 415-390-5070, Alison Holt Brummelkamp, Golin/Harris, media, 213-623-4200/
 (SGI)


CO: Silicon Graphics, Inc.; Nintendo ST: California IN: CPR SU:

LG -- NY008 -- 4919 08/23/93 08:40 EDT
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Date:Aug 23, 1993
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