Fremont, CA April 28, 1999 (OTC Bulletin Board: AURL) Aureal Semiconductor Inc., leaders in digital audio imaging, today announced financial results for the first quarter ended April 4, 1999. Revenues for the first quarter of 1999 were $12.6 million compared to $3.6 million in the first quarter of 1998, up 250%. Additionally, the gross margin grew to 34% in the first quarter of 1999, up from 22% in the prior year's first quarter. Increasing demand for Aureal-manufactured soundcard products based on its award-winning Vortex2 processor helped fuel the increase in both sales and margins.

"We believe that the excellent results we've seen during the first quarter of 1999 show that we're on track with the direction we've identified for Aureal," said Kip Kokinakis, President and CEO of Aureal. "During the quarter, we experienced strong growth in revenues, substantial gross margin improvement, introduced the low-cost Vortex AU8810 for motherboard and laptop integration, expanded our worldwide distribution channels, and entered into a significant strategic alliance to bring A3D to the Internet."

"We are continuing our efforts to set high-quality audio standards in emerging audio markets such as the Internet, and have taken important steps such as the introduction of our partnership with Flatland Online, Inc., a leading 3D Web innovator," continued Kokinakis. "Flatland has now incorporated our A3D 2.0 technology as the exclusive audio engine for their 3D Web creation and playback products. We anticipate that this alliance will help position our A3D 2.0 as a key component for Internet audio and the 3D Web, allowing us to leverage our technological leadership within the gaming market into the much larger market for Internet entertainment applications."

"Expanding our sales channels is clearly also important for continued growth, and the initial response to our newly introduced Aureal Preferred Partners Program (AP3) has been quite positive," continued Kokinakis. "AP3 is a sales program through which we are able to make our high-quality, cost-effective audio solutions available directly to PC system integrators for use in their products. This is an extremely large market and we anticipate significant worldwide growth from this program, as well as our more traditional OEM programs, over time."

The first quarter 1999 net loss was $4.1 million ($0.07 per share) compared to $5.5 million ($0.13 per share) in the first quarter of 1998.

"Our sequential quarter-to-quarter progress was also very positive as sales increased 17% from the fourth quarter of 1998 to the first quarter of 1999, with gross margin growing from 30% to 34%," said David Domeier, Vice President of Finance and CFO of Aureal. "Progress in both areas indicates the commercial success of our A3D and Vortex technologies. Our recently announced capital restructuring should provide the financial foundation to support future growth. In addition, with the late-May anticipated completion of our $20 million stock rights offering and assuming our stockholders approve our 1-for-15 reverse stock split, we anticipate meeting the NASDAQ national market listing requirements."

About Aureal Semiconductor Aureal is a leading provider of advanced audio solutions for the computer, consumer, entertainment and professional audio markets. The company designs, builds and distributes advanced audio semiconductor and software solutions for personal computers and consumer electronics devices through the OEM, integrator/reseller/VAR and direct-to-customer channels. Aureal also licenses technology designed to define and improve advanced audio standards in the marketplace.

Leading industry partners include Compaq Computer Corporation, Dell Computer Corporation, Sony Electronics, and Diamond Multimedia Systems. Aureal's award-winning product line includes A3D positional audio technology, Vortex audio processors and Vortex-based sound cards, and A3D Pro sound design software. For more information on Aureal Semiconductor or its products and industry leading audio technologies, please visit our Websites at www.aureal.com and www.a3d.com.

Forward-Looking Statements Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, but not limited to, dependence on the PC and consumer electronics industries and on product lines based on new technologies; foundry capacity, availability and reliability; competition and pricing pressures; and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.

- end - Note to Editors: Aureal, the Aureal logo, A3D, A3D Pro and Aureal Wavetracing are trademarks, and Vortex is a registered trademark of Aureal Semiconductor Inc. Other names may be trademarks of their respective owners.