"We're pleased to be able to offer this new soundcard to our valued systems integrator customers," said Michael Hunter, Aureal's Senior Vice President of Sales. "This component addresses the needs of today's consumer personal computer market, specifically, the demand for cost-effective performance audio solutions. We believe the Vortex Advantage is the best available product to fulfill this demand further expanding the reach of Aureal's powerful Vortex and A3D brands."

The Vortex Advantage PCI soundcard features Aureal's award-winning A3DTM standard for 3D audio, the most advanced positional audio technology available today. Vortex Advantage delivers high-fidelity audio that exceeds PC99 requirements at an aggressive price point for low-cost PC integration. Additionally, the soundcard features a 10-band hardware equalizer, 256-voice wavetable synthesizer, and a digital game port. Vortex Advantage ships with drivers for Microsoft Windows 98 and Windows NT 4.0.

About AP3 Aureal's Preferred Partners Program (AP3) allows systems integrators to purchase audio add-in products directly from Aureal. AP3 was created in response to demand for direct access to White Box product support for independent computer manufacturers who account for nearly a fifth of worldwide personal computer sales, according to International Data Corporation. Products currently available through AP3 include the Vortex2 SuperQuad Digital PCITM, Vortex2 PCITM, Vortex1 PCITM, and the Vortex AdvantageTM soundcards.

For more information on AP3, please send e-mail to ap3@aureal.com or visit our Website at www.aureal.com/products/pp_soun.htm

Systems integrators may also contact the following representatives for their regions: · Asia/Pacific: Joe Li, Hong Kong, (852) 2301-1131 · North & South America: Richard Salazar, Fremont, CA, (510) 252-4288 · Europe, Roy Taylor (3DSL), United Kingdom, (44) 1604-859333.

About Aureal Semiconductor Aureal is a leading provider of advanced audio solutions for the computer, consumer, entertainment, Internet, and professional audio markets. The company designs, builds and distributes advanced audio semiconductor add-in board 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.