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Released by 3Dlabs May 13, 1996

Texas Instruments and 3Dlabs Enter Strategic Alliance for Advanced 3D Graphics

Texas Instruments licenses 3Dlabs' PERMEDIA Graphics Technology;
3Dlabs gains access to Texas Instruments' fab space and RAMDAC technology

SAN JOSE, CALIF., - May 13th, 1996 - Texas Instruments Incorporated (Dallas, TX) (NYSE:TXN) and 3Dlabs® Inc. (San Jose, CA) today jointly announced a long-term licensing agreement and strategic alliance for the development of advanced 3D graphics technology. The two companies will collaborate in developing high-performance multimedia chips incorporating 3Dlabs' award-winning PERMEDIA™ 3D graphics technology; combining the graphics silicon and software expertise of 3Dlabs with the mixed-signal semiconductor and sub-micron manufacturing skills of Texas Instruments (TI). Products resulting from the alliance will target high volume graphics markets such as desktop PCs, laptop PCs and visually-engaging consumer and Internet appliances and will include PERMEDIA devices with integrated RAMDACs for use on PC motherboards.

PERMEDIA is 3Dlabs' second-generation consumer-class 3D technology, with up to five times the performance of first-generation consumer 3D chips. PERMEDIA implements all the video, 2D and 3D graphics processing requirements of a PC on a single PCI-compatible device at high performance levels. The architecture has been specifically optimized and feature-matched to provide optimum performance for Microsoft's recently announced Direct3D™ standard as well as other 3D APIs such as OpenGL® from Silicon Graphics, QuickDraw™ 3D RAVE from Apple and Heidi™ from Autodesk.

TI has licensed PERMEDIA under 3Dlabs' Core Partners Program and will manufacture, market and sell TI-branded devices that will be pin and software compatible with the PERMEDIA family of devices from 3Dlabs. TI will also develop and market derivative products incorporating its own technologies and enhancements. Samples of these devices are expected to be available during the fourth quarter of 1996. The first PERMEDIA devices will ship from 3Dlabs in the second quarter of 1996 to selected OEMs.

TI has also cross-licensed its leading-edge RAMDAC technology to 3Dlabs for incorporation into 3Dlabs' merchant products to be manufactured by TI. The deal provides 3Dlabs with long-term fab capacity and guaranteed access to TI's world-class semiconductor operations. To further strengthen the relationship between the two companies, TI has taken a small minority equity position in 3Dlabs.

According to industry analysts, 3D will be a fundamental component of the multimedia mix on PCs and other visual consumer devices starting in 1997. While much of the initial activity has been fueled by entertainment applications, experts foresee 3D graphics becoming pervasive and essential for all computer users. Interaction on the Internet or a local computer can become more engaging, productive and natural when presented in 3D.

Quotes

"TI's close relationship with 3Dlabs is an essential component of our product strategy for graphics and multimedia," said Doug Rasor, vice president of strategic marketing for TI's semiconductor group. "We selected 3Dlabs as our strategic ally after a careful evaluation process and have been thoroughly impressed with their leadership position, technology roadmap and dedication to quality. We intend to work with 3Dlabs to make the PERMEDIA architecture pervasive throughout the PC and consumer markets - which are increasingly demanding high-performance 3D graphics."

"TI's entrance into PC graphics is the beginning of a paradigm shift in a market that in the past has been dominated by fabless companies," said Osman Kent, president and CEO of 3Dlabs. "3Dlabs has found an excellent partner in TI who has the vision, resolve and resources to make 3D graphics pervasive and affordable in all areas of personal computing. Our synergistic licensing terms will enable both 3Dlabs and TI to actively develop, promote and sell PERMEDIA-based devices in the market -- this will go a long way toward establishing PERMEDIA as the industry-standard multimedia/3D chip architecture."

Industry Quotes

"3Dlabs has taken an aggressive position with PERMEDIA both in terms of technology and design wins including Creative and Acer," said Jon Peddie of Jon Peddie Associates (Tiburon, CA). "A semiconductor manufacturer of TI's caliber is going to change the graphics chip landscape forever, and it is also significant that 3Dlabs now has access to TI's RAMDAC technology as they begin the task of integrating their 3D accelerators into low-cost chip configurations."

"PERMEDIA already had an impressive price/performance ratio, and now TI adds a tremendous commercial and technological momentum to the architecture," said Geoff Ballew, semiconductor application market industry analyst for Dataquest. "3Dlabs is unique in supplying both the professional and pervasive 3D markets on the PC -- TI now extends PERMEDIA's reach into high volume PC and consumer markets."

"PERMEDIA is ideally suited to accelerating the Microsoft Direct3D API and Direct3D-based applications," said Kate Seekings, 3D technology evangelist at Microsoft. "We look forward to the wide availability of PERMEDIA-based graphics boards as PC-based, high-performance 3D becomes a reality. We believe that a company of TI's reputation in the 3D market will further accelerate the development of affordable and compelling 3D technology for the Windows® platform."

Technical Information

PERMEDIA is designed for the high-volume graphics market and integrates best-of-breed 2D, VGA and video acceleration with standard-setting 3D performance into a single chip for low-cost add-in graphics boards and motherboards.

PERMEDIA generates up to 25 million texture-mapped pixels-per-second with high-quality, true per-pixel perspective correction and full bi-linear filtering. PERMEDIA's well-balanced 3D capabilities also include rendering up to 500,000 triangles-per-second with Gouraud shading, Z-buffering and atmospheric effects. PERMEDIA contains a compact and highly-optimized unified graphics engine -- re-architected using technology developed for 3Dlabs' GLINT® workstation-class graphics processors. PERMEDIA is a bus-mastering device fully conforming to PCI Bus (Version 2.1) specifications.

Texas Instruments Company Information

An industry pioneer and the world leader in digital signal processing solutions for more than 13 years, Texas Instruments Semiconductor Group provides innovative solutions to more than 20,000 customers worldwide in the computer, communications, consumer, automotive, military and industrial markets. TI offers a unique breadth of digital and mixed signal products and technologies, hardware and software development tools, design information services and global support.

Texas Instruments Incorporated, headquartered in Dallas, Texas, is a high-technology company with sales or manufacturing operations in more than 30 countries. TI products and services include semiconductors; defense electronics systems; software productivity tools; printers, mobile computing products and consumer electronics products; electrical controls; and metallurgical materials.

More information about TI is located on the world-wide-web at http://www.ti.com

3Dlabs Company Information

3Dlabs is a world-wide supplier of merchant chips, software and core technology for 3D graphics. With over 10 years experience in 3D graphics, the company's products enable chip, board and system manufacturers to integrate advanced 3D capabilities into their products for such applications as multimedia, CAD, simulation, virtual reality, interactive TV and video games.

3Dlabs has consistently led the industry in being first to deliver successive generations of 3D devices that precisely meet the emerging needs of the 3D market. In a recent article the company was positioned as the "First member of the next generation of chip companies" by the influential Red Herring magazine. In January 1996, 3Dlabs' GLINT and PERMEDIA chips were honored with a First Place Computer Graphics World Editor's Choice Award for outstanding innovation. 3Dlabs Inc. is headquartered in San Jose, CA., was founded in April 1994, and is privately owned.


3Dlabs and GLINT are registered trademarks and PERMEDIA is a trademark of 3Dlabs Inc. Ltd.. Microsoft, Windows and Direct3D are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. OpenGL is a registered trademark of Silicon Graphics Inc. Heidi is a trademark of Autodesk Inc. All other trademarks are acknowledged.

(c) Copyright 1996 Texas Instruments Incorporated. All rights reserved.
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