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TI AND C-CUBE MICROSYSTEMS ANNOUNCE AGREEMENT TO DEVELOP DIGITAL COMPRESSION PRODUCTS

 DALLAS, Feb. 1 /PRNewswire/ -- Texas Instruments (NYSE: TXN) and C-Cube Microsystems today announced an agreement to develop integrated circuits for video and audio compression. The agreement includes technology and product development exchanges between the two companies. These circuits will be used for applications such as digital cable TV and Direct Broadcast Satellite (DBS) TV, HDTV, Compact Disc (CD)-based consumer video products and personal computer multimedia products.
 The agreement provides each company rights to develop derivative products of the other company's current and future MPEG (Motion Picture Experts Group) decoder and JPEG (Joint Photographic Experts Group) coder/decoder products. This will make possible the rapid development of highly integrated customer or application specific versions of MPEG and JPEG devices. In addition, the two companies plan to engage in future cooperative development programs. C-Cube will also have access to TI's advanced CMOS process technologies and production facilities.
 The companies will work together to provide inexpensive, dedicated devices especially targeted at the consumer market. Specific applications for these compression products include Compact Disc- Interactive, CD-based karaoke players, CD-based video games and new digital television broadcast receivers, including HDTV, digital cable TV and DBS. High performance compression products will also bring about a new era of desktop information processing as multimedia applications bring video and audio to the personal computer.
 "Considering TI's long-standing position as the industry leader in digital signal processing, it is only natural that we strongly pursue dedicated implementations of standard algorithms," said Walden C. Rhines, executive vice president of TI's Semiconductor Group. "The application of digital signal processing techniques to consumer products promises to be a tremendous growth market for the semiconductor industry in the 1990s. Our relationship with C-Cube is complementary to both companies' strengths and strategies, and promises to keep each of us at the forefront of this technology and market."
 "Our agreement with TI is an endorsement of our compression technology by the leader in the digital signal processor (DSP) market," said Bill O'Meara, president and chief operating officer of C-Cube Microsystems. "With TI's marketing and production strength behind MPEG and JPEG, the digital video market is poised for explosive growth.
 "TI's leadership in audio compression is a true complement to our video leadership. It is our intent to offer future products that utilize these key strengths from both companies," continued O'Meara. "In addition, TI's process technologies and worldwide production capacity will allow C-Cube to continue to provide customers with leading-edge products."
 Raw, uncompressed digital video data requires too much processing to make electronic equipment cost-effective and practical for most applications. The JPEG algorithm compresses each frame of video data by removing information to which the human eye is not sensitive. MPEG extends this compression technique by transmitting only the part of each video frame image that differs from the one before it. With JPEG technology, video can be compressed enough to store and manipulate video on a personal computer. With MPEG technology, over 70 minutes of video can be stored on and played from an $0.80 Compact Disc, providing a less expensive distribution media than video tape.
 -0- 2/1/93
 /CONTACT: Ted Jernigan, 214-997-5467, or Melody Wolfe, 214-997-5470, both of Texas Instruments; or Scott St. Clair of C-Cube Microsystems, 408-944-6300/
 (TXN)


CO: Texas Instruments; C-Cube Microsystems ST: Texas IN: ENT SU:

TS -- NY066 -- 1359 02/01/93 12:06 EST
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Date:Feb 1, 1993
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