News Release

S3 Graphics and InterVideo Announce First Use of DeltaChrome Chromotion Programmable Video Engine for the New WinDVD 5

S3 Graphics' revolutionary Chromotion™ engine produces leading edge visual effects within WinDVD 5 playback, adding functionality and reducing power consumption for notebook and desktop applications

Computex, Taipei, Taiwan 23 September 2003 - S3 Graphics Inc., a leading supplier to the 3D graphics accelerator market, today released details of the first commercial use of its Chromotion Programmable Video Engine in the DeltaChrome DX9 graphics processor with the new WinDVD 5 from leading multimedia software designer, InterVideo.

This hardware feature ensures that when the newly released WinDVD 5 detects the installation of the DeltaChrome graphics processor, an additional set of capabilities will be revealed to the user, from useful video processing such as de-blocking, sharpening and smoothing to whimsical effects such as emboss and neon, among others. Additionally, these effects can be combined in any fashion to suit the user. Because Chromotion hardware is used instead of the CPU for these functions, significant power reductions can be realized, which is of particular benefit for notebook users.

The Chromotion Programmable Video Engine concept was developed to provide a wide variety of video processing functions in an advanced compact architecture. The powerful DeltaChrome DX9 core is the first to feature the Chromotion architecture that adds exciting new processing capabilities to applications such as WinDVD 5, as well as handling all of the functions previously assigned to fixed function blocks such as iDCT and motion compensation for MPEG decompression. This integration of video processing in one compact programmable block results in exotic capabilities as well as reducing cost and power consumption.

"With S3 Graphics' Chromotion video engine and WinDVD 5, even power-conserving notebook users can take their viewing experience to new levels," said Mike Ling, VP of Marketing, InterVideo. "Expanding the capabilities of our flagship product adds even more appeal to an already widely accepted DVD player paradigm."

"The Chromotion concept and implementation in our new DeltaChrome product is the right step forward in advanced video architecture. We want to give the PC user more than just high performance 3D, and enabling these extra features in leading commercial applications such as WinDVD 5 adds considerable value for the user," said Dr. Gerry Liu, VP of Marketing at S3 Graphics, Inc.

About S3 Graphics, Inc.

S3 Graphics, Inc., a VIA Technologies joint venture company, is a leading supplier to the 3D enabled PC graphics market it pioneered. Today, S3 Graphics ships low power, high performance, Commercial Grade 3D graphics sub-systems to top tier notebook manufacturers. In addition, S3 Graphics integrates market-leading chipset technology from VIA Technologies, Inc. into shared memory architecture products for the high volume, value PC market. Headquartered in Fremont, California, S3 Graphics has a long-term commitment to top performance, quality and state-of-the-art features for desktop and mobile applications. Additional information can be found at the Company's website at www.s3graphics.com.

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