LAS VEGAS, NV (Consumer Electronics Show), Jan. 6, 2000 - Cirrus Logic Inc. (NASDAQ:CRUS), the leader in Internet audio chip technology, and Diamond Multimedia Communications, a division of S3 Incorporated (Nasdaq: SIII), today announced an alliance to collaborate in the design of Rio audio players and future Internet appliances.

"We have been a pioneer in digital audio products since the debut of the Rio 300 by providing customers with the feature sets they want most," said Jim Cady, president of S3's Diamond Multimedia Communications. "Working with Cirrus Logic on future generations of Internet appliances will help us continue to do this and deliver even more powerful products."

"We have developed our Maverick™ chip solutions with present and next-generation appliances in mind," said Matthew Perry, vice president and general manager of Cirrus Logic's Embedded Processors Division. "Working with Diamond Multimedia on the development of future products will enable innovative solutions to emerge from zero to market in Internet time™."

Diamond Multimedia Communications

Recently acquired by S3 Incorporated, Diamond Multimedia Communications has been the leader in communications, digital music players and home networking since its introduction of the HomeFree product line in January 1999, and the introduction of the Rio player in November 1998.

S3 Incorporated

Building on the technology, distribution and brand strengths of its Communications, Multimedia and Professional Graphics divisions, S3 is committed to delivering targeted products for the Personal Computer and Consumer/Internet Appliance markets. Rounding out its PC silicon offerings, S3's recent acquisition of Diamond Multimedia adds consumer brands such as the Viper and Stealth series of graphics accelerators, Rio series of Internet audio appliances, the Supra series of modems, and the HomeFree line of home networking products.

Cirrus Logic Inc.

Cirrus Logic is a premier supplier of high-performance analog circuits and advanced mixed-signal chip solutions. The company's products, sold under its own name and the Crystal product brand, enable system-level applications in mass storage, audio, and precision data conversion. Additional information about Cirrus Logic is available at www.cirrus.com.

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Crystal and Maverick are trademarks of Cirrus Logic Inc. Diamond Multimedia Communications, Rio, HomeFree, Viper, Stealth and Supra are trademarks of S3 Incorporated. All other trademarks are the property of their respective owners.