Philips Semiconductors Unveils New Set-top Box Solution for Internet TV   and  
                            Windows-based Terminals                            
                       (Business Wire; 12/21/98)                       

SUNNYVALE, CALIF. (Dec. 21) BUSINESS WIRE -Dec. 21, 1998--

New Strategy Boosts Company's Investment in Set-Top Box Market;       Product 
Portfolio to Include Interactive Solutions

Building on the company's long term investment in the emerging set-top box 
market, Philips Semiconductors today announced its first offering designed 
specifically for Internet and Windows-based terminals.

The new Philips Semiconductors SAA9730 Internet terminal controller is uniquely 
designed for high-speed Internet access via modem or Ethernet, and includes a 
flexible PCI interface that can connect to any processor.

The SAA9730 marks the first in a family of solutions from Philips 
Semiconductors, which will target the interactive set-top box and network 
interconnection markets. The SAA9730 complements existing set-top box offerings 
from Philips Semiconductors, joining the SAA7215/7219 mid-range digital 
solutions for cable and satellite introduced earlier this year.

Additionally, Philips Semiconductors plans to unveil a highly integrated 
advanced processor for digital interactive set-top boxes in mid-1999, 
positioning the company as a broad-based solutions supplier for all segments of 
the set-top box market. Future products are expected to integrate MPEG2 
video/audio, AFD (all format decode) inputs. Ultimately, products will 
incorporate fully programmable media (VLIW/TriMedia) processing.

"As the network interface market evolves and designers require distinct cost-
effective and highly integrated features, Philips Semiconductors will be well 
aligned to provide solutions that meet the varying requirements of today's set-
top box manufacturers," said Rodger Sykes, director of marketing for Philips 
Semiconductors Windows Systems Group.

"Our overall objective is to offer highly integrated, unique time-to-market and 
feature advantages to our OEMs through innovative designs, which incorporate 
Philips Semiconductors' core competencies -- including MPEG2 decoding, video, 
audio and advanced graphics capabilities."

The Philips Semiconductors SAA9730 integrates essential functionality required 
for high-speed Internet interface and access. Today's conventional solutions 
are less integrated and are generally higher priced.

The SAA9730, in conjunction with a MIPS R5000 or X86, combines video, PC-level 
graphics and Ethernet or modem communication for optimal flexibility. 
Additionally, the SAA9730 supports both video and TV (NTSC and PAL) on separate 
outputs without the need for an external decoder.

Pricing and Availability

Samples of the SAA9730 are available now for limited distribution for U.S. $18-
22 in quantities greater than 200,000. For more information, please call 1-800-
447-1500 ext. 1683.

Thanks Kinetic!

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