NeoMagic Announces Availability of NeoMobileTV(TM) Companion Chip for Worldwide Mobile TV Market

NeoMagic Announces Availability of NeoMobileTV(TM) Companion Chip for Worldwide Mobile TV Market

SANTA CLARA, Calif., Nov. 16 /PRNewswire-FirstCall/ -- NeoMagic Corporation (NASDAQ:NMGC) announced today the availability of its NeoMobileTV(TM) companion chip for the fast growing digital mobile TV market. The NeoMobileTV companion chip is optimized to deliver high quality video and audio at very low power for mobile TV applications in mobile phones and other handheld products. In addition, it is designed to work with all major mobile TV tuners and demodulators to support mobile TV standards around the world including ISDB-T, T-DMB, E-DMB, DVB-H and MediaFlo.

The NeoMobileTV companion chip is designed for easy integration into feature phones with minimal redesign to existing architectures. This enables developers to capitalize on engineering investments already made, saving significant development cost and time as compared to traditional design methods. Several Asian companies are currently working to develop products for the worldwide mobile TV market based on the NeoMobileTV.

"The NeoMobileTV companion chip is part of a more comprehensive mobile TV solution from NeoMagic. Our mobile TV solution also includes comprehensive software, hardware reference designs and a complete development environment. Most importantly, our ability to easily 'add-on' the mobile TV solution to existing phone designs allows us to target the highest volume segments of the mobile handset market," said Doug Young, President and Chief Executive Officer of NeoMagic Corporation.

The NeoMobileTV companion chip is based on NeoMagic's proprietary multimedia engine that uses an array-processing architecture to deliver improved power efficiency and processing performance. NeoMagic's multimedia engine is fully programmable and can support H.264, WMV, MPEG-4, H.263 and DivX video decoding at frame rates up to 30 frames per second. The NeoMobileTV also offers an "LCD pass-through" feature that enables a highly power efficient usage model in feature phone designs.

About NeoMagic

NeoMagic Corporation delivers semiconductor chips and software that provide mobile solutions that enable new multimedia features for handheld devices. These solutions offer low power consumption, small form-factor and high performance processing. The Company demonstrated one of the first solutions used for H.264 video decoding in a mobile digital TV phone, and is developing and delivering solutions for audio/video processing of the dominant mobile digital TV standards, including ISDB-T, T-DMB, E-DMB and DVB-H. For its complete system solution, NeoMagic delivers a suite of middleware and sample applications for imaging, video and audio functionality, and provides multiple operating system ports with customized drivers for the MiMagic product family. NeoMagic has a patent portfolio of over 25 patents that cover NeoMagic's proprietary array processing technology, embedded DRAM and other technology. Information on the Company may be found on the World Wide Web at www.neomagic.com .

This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including the anticipated growth of the digital mobile TV market, the development of products based on the NeoMobileTV companion chip by Asian companies, the savings of significant development cost and time by customers who develop products using the NeoMobileTV companion chip and expected future shipments of the NeoMobileTV companion chip. These forward-looking statements reflect current expectations. However, actual events and results could vary significantly based on a variety of factors including but not limited to the digital mobile TV market growing more slowly than anticipated, future availability of competitive products, companies not being able to successfully and cost-effectively develop products using the NeoMobileTV companion chip or failure of customers' products to achieve market acceptance. In addition, customers who are currently working on developing products that use the Company's NeoMobileTV companion chip may never place orders for commercial quantities of the chip or, if they do, could stop purchasing chips from the Company at any time or switch to other vendors. On the other hand, if the market demand for the Company's NeoMobileTV chip increases rapidly, the Company may not be able to keep up with the demand due to the long lead times required by its foundry. Additional risks that could affect the Company's future operating results are more fully described in the Company's most recent annual report, its most recent quarterly report and other filings with the United States Securities and Exchange Commission (SEC), and are available online at http://www.sec.gov/ . NeoMagic may, from time to time, make additional written or oral forward-looking statements, including statements contained in filings with the SEC and reports to shareholders. NeoMagic does not undertake the obligation to update any forward-looking statements that may be made by or on behalf of the company, except as may be required by law.

NOTE: NeoMagic, and the NeoMagic circle logo are registered trademarks, and MiMagic and NeoMobileTV is a trademark, of NeoMagic Corporation. All other trademarks are the property of their respective owners. NeoMagic disclaims any proprietary interest in the marks and names of others.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO )

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Source: NeoMagic Corporation

CONTACT: Scott Sullinger, Chief Financial Officer, NeoMagic Corporation,
+1-408-988-7020; or Erica Mannion, Investor Relations, Sapphire Investor
Relations, LLC, +1-212-766-1800, for NeoMagic Corporation

Web site: http://www.neomagic.com/

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