Wave Issue 9036 4/6/99 Article 1-01

***S3 and VIA Form Strategic Partnership for Developing
Integrated Graphics/Core Logic Chip Sets
(April 6)

S3 has formed a strategic partnership with VIA Technologies, to
develop and market a family of integrated products that support
both Intel and AMD processors. The two companies expect to
introduce the first product, which will be targeted at the
mainstream and growing value PC market, in the second half of
1999.

The parties expect that the first S3/VIA product, codename
SavageNB, will combine the best of S3's Savage4 graphics engine
with VIA's Apollo Pro core logic design. By integrating the two
technologies, S3 and VIA will seek to effectively combine three
components (North Bridge, the graphics controller and frame
buffer) into a single chip configuration. In high-performance
designs that require multiple frame buffers, this can reduce
system chip count by as many as 9 chips. In addition to the
potential cost benefits, the integrated products will be designed
to reduce the required space for graphics, core logic and frame
buffers by more than 50 percent, which should enable OEMs to
deliver smaller form factors or add new technologies without
increasing board space.

Specific details about the chip will be available when the two
companies officially launch the new product, currently scheduled
for the second half of 1999. The detailed structure of the
strategic partnership between S3 and VIA will be subject to
negotiations and finalization of agreements governing the
relationship between the two parties.

www.S3.com