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NeoMagic Provides Enhanced MPEG-4 Video Decoding For PDAs and Mobile Phones Using PacketVideo's pvPlayer


SANTA CLARA, Calif., Oct 31, 2002 - NeoMagic Corporation (Nasdaq: NMGC), the pioneer of Applications Processors for multimedia-rich handheld systems, today announced that it has partnered with PacketVideo, the global leader in mobilemedia software, to further enhance the video quality on current and next-generation handheld devices, including PDAs and mobile phones.

NeoMagic currently uses PacketVideo's standards-compliant MPEG-4 pvPlayer to enable improved video decoding on its existing MiMagic Applications Processors. The pvPlayer software is optimized to run on the MiMagic architecture. The result of the combined hardware and software solution is superior video performance without increased power consumption.

"PacketVideo and NeoMagic each have significant expertise in enabling superior multimedia experiences," said Ravi Bhatnagar, senior vice president of business development at NeoMagic. "Like the MiMagic Applications Processors, pvPlayer is a high-performance solution, designed specifically for wireless multimedia. We are pleased with the capabilities and performance of our joint solution and look forward to ongoing collaboration with PacketVideo."

"The MiMagic family of Applications Processors was architected to enable multimedia-intensive third party applications," said Kathleen Peters, vice president of worldwide embedded solutions at PacketVideo. "The combination of NeoMagic's Application Processor hardware and PacketVideo's market-leading multimedia software solutions will enable mobile operators and device manufacturers to offer a broad range of advanced applications and services."

About PacketVideo Technology

PacketVideo's pv3(TM) Mobilemedia System is a 3GPP-compliant, end-to-end wireless multimedia solution that encodes, delivers and decodes wireless multimedia, video and audio over error-prone wireless networks. pv3 comprises pvAuthor(TM) for encoding content, pvServer(TM) for controlling and delivering rich media, and pvPlayer(TM) for decoding and displaying content on mobile devices. PacketVideo has also developed and launched pvPlayer, pvAuthor, and pv2way(TM) Embedded Solutions that allow mobile-device manufacturers to quickly and cost-effectively bring products to market with customized MPEG-4-enabled decoding, encoding and two-way video conferencing capabilities.

PacketVideo Embedded Solutions are licensable integrated building blocks that lower development risks by delivering pre-validated, application-targeted software sub-systems to reduce design and development schedules for the inclusion of mobilemedia capabilities in handsets. PacketVideo's products are compliant with standards and specifications from 3GPP, 3GPP2, MPEG-4, WAP, IETF and other global standards organizations and technical forums.

About PacketVideo

PacketVideo is the world's leading provider of carrier-class software that enables mobilemedia today. PacketVideo's standards-based software products enable the distribution of one- and two-way video, high-quality audio, animation and rich graphics over wireless networks to mobile devices such as phones and PDAs. PacketVideo's mobilemedia products enhance communication, productivity, security, information and entertainment, enabling the delivery of an enriching and productive mobile experience.

PacketVideo's investors include AOL Time Warner, Comverse Technology, Credit Suisse First Boston, GE Equity, Intel Capital, Kyocera, Motorola, Philips, QUALCOMM, SAIC, Siemens' Mustang Ventures, Sony Corporation of America, Sun Microsystems, Texas Instruments, and others. To learn more, visit www.pv.com .

About the MiMagic Family

MiMagic is the name of NeoMagic's family of Applications Processors for multimedia-rich handheld devices. MiMagic products combine a RISC CPU, a variety of I/O functions, and a high level of multimedia hardware into single-chip solutions that provide the heart of low-power battery operated systems with high performance multimedia capabilities. The MiMagic family supports a variety of operating systems including Microsoft Windows CE(TM), SymbianOS(TM) and Embedded Linux.

About NeoMagic

NeoMagic Corporation, based in Santa Clara, California, enables new generations of handheld systems with Applications Processors that offer the lowest power, smallest form-factor and best multimedia features and performance. The company has pioneered the integration of complex logic, memory and analog circuits into single-chip solutions. NeoMagic is mobilizing multimedia for the Internet age. Information on the company may be found on the World Wide Web at www.neomagic.com .



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