News Release

S3 Graphics Launches Ultra Low Power Hi-Def Graphics Processor during CES 2005

New DeltaChrome™ S8 ULP sets new records for performance per watt, delivering full Hi-Def DirectX 9.0 capabilities with no need for fan or heatsink, for the totally silent system

Las Vegas, NV, USA January 6th, 2005 - S3 Graphics today unveiled DeltaChrome S8 ULP, the new, ultra low power graphics processor for silent desktop PC systems and powerful gaming and entertainment devices for the living room environment. Operating at under 2.5 watts core power while running 3D applications, DeltaChrome S8 ULP uses less than 50% of the average power consumption of popular graphics card GPUs and is defining a new class of ultra low power graphics.

Leveraging S3 Graphics’ extensive experience in developing power efficient graphics processors for the mobile market, the 8 Pixel Shader pipeline, Quad Vertex Shader DeltaChrome S8 ULP is the world’s first full featured 8 Pipeline DirectX 9.0 processor able to operate at full 3D performance without additional cooling fans or heatsinks.

With quiet computing gaining popularity in the desktop space, DeltaChrome S8 ULP eliminates the noise factor associated with high-end graphics’ cooling solutions. Moreover, its HDTV component video output with resolutions from 480i to 1080p makes DeltaChrome S8 ULP an ideal solution for home theater PC and other living room digital devices, while Chromotion™, the advanced programmable video engine technology, adds a further dimension to DeltaChrome S8 ULP’s media playback capability.

This new class of ULP devices - power efficient, low profile and feature rich, gives system builders a unique opportunity to integrate advanced DirectX 9.0 graphics and enhanced media playback in small custom chassis and specialized applications not possible until now. Systems requiring always-on, full time operation will benefit from the lower total system power usage, completely silent operation and higher reliability due to the absence of any mechanical cooling for the graphics processor.

“In the quest for winning benchmark races, the needs of PC users are easily overlooked. The latest advanced process technology and design techniques have given the industry an opportunity to deliver a balance of performance and features with superior power efficiency,” said Dr Gerry Liu, CFO and VP of Marketing, S3 Graphics. “We have listened and responded to the users - DeltaChrome S8 ULP is a class-defining product for the emerging category of ultra low power, high performance GPUs, and is the first of a series of such products.”

DeltaChromeS8 ULP, the Ultra Low Power AGP8X solution for desktop systems, will be available from S3 Graphics Partners in all major world markets during Q1-2005.

About S3 Graphics

S3 Graphics Co., Ltd., a VIA Technologies joint venture company, is a leading supplier to the 3D enabled PC graphics market it pioneered. Today, S3 Graphics ships high performance consumer graphics cards to desktop board manufacturers and 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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