Wave Issue 2001 1/10/00 Article 1-01

***S3 Invests in Intellon's Chip Technology for Next-Generation
(January 5)

S3 Incorporated announced that it has made an investment in
Intellon Corporation to secure access to Intellon's high-speed
Power Line home networking chip technology.

Under the terms of the agreement, S3 and Intellon will form an
equity and commercial relationship focused on researching and
developing future powerline-based Diamond HomeFree-branded home
networking solutions. Terms of the investment were not disclosed.