S3TC Texture Compression Technology from S3 Graphics Co., Ltd. is licensed to Sony Computer Entertainment

Fremont, CA, August 30th 2004 - S3 Graphics, Co. Ltd., today announced an agreement with Sony Computer Entertainment Inc. and Sony Computer Entertainment America Inc., for its licensing of S3 Graphics’ S3TC texture compression technology. S3TC will be used in Sony Computer Entertainment’s PlayStation® Portable.

“We are pleased to adopt S3 Graphics S3TC technology in PlayStation® Portable,” says Masayuki Chatani, Corporate Executive and CTO, Sony Computer Entertainment Inc. “S3TC technology allows PlayStation® Portable software developers to take advantage of very high quality texture compression technology and benefit from a range of proven tools and libraries.”

This license agreement reinforces S3 Graphics’ S3TC texture compression technology as the industry standard for both PC and game console graphics.

S3TC enables high level of compression while maintaining texture detail and quality. This balance of quality and compression becomes even more important for portable applications when efficient use of memory directly impacts the size and quality of software applications and games.

“We are very pleased to be providing technology for incorporation in Sony Computer Entertainment’s PlayStation® Portable.” says Dr Gerry Liu, CFO and VP of marketing, S3 Graphics. “PlayStation® Portable is a great product, building on the huge success of the PlayStation® product family. High quality texture compression is a key technology for portable platforms where memory size and battery life are critical. S3TC continues to be the industry standard for texture compression.”