SGS-THOMSON will CO-DESIGN, Make, and Market MPACT MEDIA PROCESSORS

Las Vegas, Nevada, November 18, 1996 SGS-THOMSON Microelectronics and Chromatic Research, Inc.
today jointly announced that SGS-THOMSON will co-design, manufacture, and market single-chip media processors. Designated the Mpact series, these processors are software-upgradable multimedia solutions for 2D and 3D graphics, audio, video, fax/modem, telephony, and videophone.

Architected by Chromatic Research, Mpact media processors are the first of a new breed of microprocessors dedicated to multimedia for PCs and consumer electronics devices, including Multimedia PCs, PC-TVs, network computers, and more. According to MicroDesign Resources (Sunnyvale, CA), the worldwide media processor market is already expected to grow rapidly from its start in late 1996 to 55.5 million units and over $1.6 billion by the year 2000.

SGS-THOMSON's entry into the Mpact partnership completes Chromatic Research's goal to partner with three of the world's largest, most advanced semiconductor suppliers. These suppliers not only co-design and manufacture Mpact media processors, but also market them to PC and consumer electronics manufacturers as their own products, under the Mpact brand name. Toshiba Corporation (Tokyo, Japan) and LG Semicon (Seoul, South Korea) are the other suppliers.

With its unique "chipless" business model, Chromatic Research derives its revenue from the "mediaware" software required to give a media processor its functionality. This approach also provides Mpact customers with a complete solution, including hardware (Mpact media processor) and multimedia software (Mpact mediaware).

With $3.5 billion in 1995 revenues, SGS-THOMSON brings world-class design, manufacturing and marketing resources to the long-term effort to make the Mpact media processor a de facto industry standard for multimedia PCs and consumer electronics.

As a company who sells both high-performance x86-compatible processors and traditional fixed-function multimedia ICs, SGS-THOMSON sees a rapidly growing long-term opportunity for Mpact media processors as complements to x86 devices with multimedia extensions in PCs, and as another cost-effective alternative for combinations of traditional, fixed-function chips in PCs and consumer electronics products.

"The Mpact media processor is a strategic addition to SGS-THOMSON's product line, giving the company the ability to provide PC manufacturers with a robust mix of complementary products including its high-performance ST6x86 microprocessors, flash memory, modem analog front ends and mixed-signal components," said Piero Martinotti, Corporate Vice President and General Manager, New Ventures Group, SGS-THOMSON.

"Several large semiconductor companies have shown great interest in signing on as the final Mpact semiconductor partner, but we felt SGS-THOMSON provided the greatest added value and best strategic fit for Mpact media processors," said Wes Patterson, President, Chromatic Research. "Their strengths in manufacturing multi-million-transistor logic devices in high volumes, combined with an industry-leading line of digital and mixed-signal multimedia components for PCs and consumer electronics, make them an ideal supplier of Mpact media processors. SGS-THOMSON's participation adds tremendous momentum behind an already rapidly moving media processor marketplace."

SGS-THOMSON will manufacture Mpact media processors using its 0.35 micron HCMOS process, one of the most advanced volume production technologies in the industry.

SGS-THOMSON is a global independent semiconductor supplier listed on the New York Stock Exchange (NYSE:STM) and on the Bourse de Paris. It designs, develops, manufactures, and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronics applications, including telecommunications systems, computer systems, consumer products, automotive products, and industrial automation and control systems.

Chromatic Research, Inc. is the pioneer and leader of the fast-growing media processor market. Chromatic Research is the world's first chipless" semiconductor company, based on a unique business model whereby Chromatic Research's semiconductor partners co-develop, manufacture and sell the Chromatic Research-designed Mpact media processor and Chromatic Research develops and sells the enabling software called "mediaware". The Mpact media processor solution integrates a full spectrum of multimedia functions, including video, 2D graphics, 3D graphics, audio, fax/modem, telephony and videophone. Founded in 1993, the company is privately held. Chromatic Research, Inc., 615 Tasman Drive, Sunnyvale, CA 94089-1707.

Note to Editors

Mpact Media Processors

The demand for multimedia processing is exploding. Users and manufacturers are clamoring for faster Internet connections, better 3D graphics, sharper digital video, and more sophisticated audio. This demand can easily outpace the bandwidth of the system CPU, making media processors the ideal long-term x86 complement for multimedia systems. Additionally, the Mpact media processor eliminates the headaches associated with combining multiple fixed-function chips to provide each multimedia capability, which becomes expensive and complicated for devices that need to run simultaneously three or more media functions.

Media processors use supercomputer techniques and specialized software, known as "mediaware", to simultaneously perform several, high-end multimedia functions. Although media processors provide about five times the specialized multimedia processing power of the fastest general-purpose x86 processors, media processors are very low-cost and work alongside x86 processors, adding to the overall multimedia power of a PC. Because media processors replace multiple add-in cards and fixed-function chips, PCs with media processors can cost less than traditional multimedia PCs yet offer more capabilities.

Features offered by a single Mpact media processor with Mpact mediaware include 2D and 3D graphics, MPEG-2 video playback, home and corporate video editing, 33.6kbps fax/modem, telephony with voicemail, surround-sound and 3D audio, and more. Because they are software-upgradable via mediaware, the same Mpact media processor will also be able to perform new multimedia tasks in the future, giving manufacturers and users protection against obsolescence.

For further information, please contact:

Dave Wilt
Chromatic Research
Tel. +1 408 752 9217
wilt@chromatic.com

Simon Loe
SGS-THOMSON Microelectronics
Tel.+33 4 50402558

George Millington
Copithorne & Bellows PR for Chromatic Research
Tel. +1 408 988 2100
george.millington@cbpr.com

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