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Sony Uses ESS Single-Chip VCD/MP3 Decoder for Sony's First MP3 Boom Box

The new Sony CFD-S40CP boom box, created for both American and European markets, is designed to enhance the audio CD experience by adding the capability to play MP3 CDs, fulfilling the emerging demand for portable MP3 music playback. Sales of MP3 products are expected to grow from an estimated 7 million consumer appliances in 2001 to approximately 46 million units in 2005, as estimated by the Mercury Research Report. This represents approximately a 60-percent annual growth rate.

Compared to a traditional audio CD, which is limited to only 60 minutes of music on a single disk, an MP3 CD can hold up to 600 minutes of music without sacrificing music quality. The ES3880 integrates CD servo controller technology onto the chip, reducing overall system cost. By using the company's feature-rich designs and competitive system cost solutions, ESS Technology has established a strong presence in the VCD and MP3 market.

William K. Wong, vice-president of marketing stated, ``ESS holds a 70-percent market share in VCD chip sales, with approximately 20 million shipments in 2000 out of a worldwide market of 30 million chipsets, as estimated by IDC. In addition, we hold a leadership position in this technology because we are the first to integrate VCD and MP3 on a single chip. Sony's selection of our chip design for their boom boxes is an important step in our efforts to promote this proven chip technology to major consumer electronics OEMs for incorporation into their products. This will allow consumers to listen anywhere to high-quality MP3 audio files downloaded from the Internet.''

The ES3880 VCD chip is available in an industry-standard, 100-pin, low-profile package. This chip can also be used in all other CD-based audio portable MP3/VCD appliances, such as laptop or notebook computers, or in automotive applications.

About ESS Technology

ESS Technology, Inc., a leader in Internet, communications, digital video, and home networking, provides advanced products enabling the convergence of communications, computer, consumer, and Internet markets. ESS's subsidiary, Vialta, provides advanced, easy-to-use products and applications for the Internet. Vialta products include multimedia appliances, applications, and content for home entertainment and the Internet.

ESS, headquartered in Fremont, California, has R&D, sales, and technical support offices worldwide. ESS Technology's common stock is traded on the Nasdaq under the symbol ESST. ESS Technology's web site address is: http://www.esstech.com .

The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the timely availability and acceptance of the Company's new products, the impact of competitive products and pricing, the dependence on continued growth in demand for PC and consumer multimedia products, as well as the other risks detailed from time to time in the SEC reports of ESS, including the reports on Form 10-K and Form 10Q. Actual results could differ materially from those projected in the forward-looking statements.

SOURCE: ESS Technology, Inc.