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Motorola and Aureal Announce Strategic Alliance

Motorola and Aureal Announce Strategic Alliance for Integrating 56K Soft Modem Technology and 3D Audio

Companies Will Share World-Class Technologies to Produce Cost-Effective, Specialized Communication/Audio Solutions

Fremont, CA - October 20, 1998 - Motorola Internet and Networking Group (ING) (Mansfield, MA) (NYSE:MOT) and Aureal Semiconductor (Fremont, CA) (OTC:AURL) today announced a strategic alliance to develop and market a series of enhanced communication solutions to the PC marketplace combining Motorola's unique Soft Modem technology with Aureal's award-winning Vortex™ 3D audio accelerators and A3D positional audio algorithms.

This partnership is the natural result of the convergence occurring in today's PC architecture, and is reflective of both companies' strong commitment to providing consumers innovative solutions. By sharing their expertise and strengths in the fields of communications and audio, the companies will offer affordable, upgradeable and easy-to-use products that would not have been conceived without the benefit of a collaborative business model. This union benefits everyone from audiophiles and cutting-edge gamers, to business users and the average consumer alike.

The first of a series of products to be announced is an Aureal modem/audio combo card that integrates Aureal's Vortex audio chip with Motorola's SM 56 modem software. The solution combines a robust, full-featured V.90 data/fax/voice modem (with auto-fallback to K56flex for backward compatibility) with Aureal's A3D positional audio technology and the Vortex 8820 digital PCI audio accelerator.

The combined technology from Aureal and Motorola will be integrated in code that provides high connect rates, sustained data throughput, and increased resiliency to line noise, while maintaining high concurrency of multimedia operations.

The cost-savings of a an integrated 3D audio/modem card are expected to be significantly lower than the combined pricing for separate products and will also save users and/or vendors an additional PCI slot.

Future collaborations from Motorola and Aureal will be products based on Intel's upcoming Audio Modem Riser (AMR) format for desktop systems and the Mobile Daughter Card (MDC) for portable configurations. Further details on both company's products and technologies may be found at http:// www.mot.com/ing and http://www.aureal.com.

"Motorola and Aureal worked together for months to ensure that customers get a tightly integrated, quality product - our business model is to work with industry leaders in specific vertical markets and Aureal is a world-class leader in 3D audio technology," said Patrick Casey, Vice President of Sales and Marketing for Motorola's Internet and Networking Group. "This partnership creates a new class of solution that embodies the collective excellence of two established leaders."

"We wanted to work with Motorola because of their technical leadership and strong intellectual property position," said Sanjay Iyer, Vice President and General Manager of Aureal's Technology Division. "In this strategic alliance, we will take Motorola's world-class analog modem technology and deliver integrated audio-modem solutions to the retail and OEM markets using our proven silicon, software and board-level platforms."

Combined PC OEM Support

Both Motorola and Aureal intend to provide a combined support model for PC OEMs using this product. This will involve closely coordinated joint-support teams that support PC OEMs and their board-level manufacturing partners through all phases of product introduction and ongoing end-user services

Company Strengths


Both companies bring world-class knowledge, experience and strengths to this partnership which will produce products greater than either company would create on their own. As an innovator in both wireless and wireline communication technology, Motorola has been a clear industry leader for years. Building on three decades of modem development and with expected shipments of 2 million PCI and ISA modems shipped in 1998 alone, it is one of the foremost authorities on modem technology and holds several significant patents in the field.

Aureal is a recognized leader in 3D audio hardware and software. Its patented A3D psychoacoustic-based audio rendering is a favorite among interactive gamers and can be found in leading systems such as the Dell® Dimension™ and the Compaq® Presario™. Additionally, it can be found in over 100 game titles such as Unreal and Jedi Knight. A3D provides for unmatched positional audio over 2 or 5 speaker systems.

Availability


Products from the Motorola/Aureal strategic alliance will be available in volume from Aureal in the first quarter of 1999 through standard OEM and reseller channels.

About Aureal


Aureal builds advanced audio semiconductor and software solutions that increase functionality and features for personal computers and consumer electronics devices. Aureal develops audio processing semiconductor chips and audio boards, and also licenses technology designed to define and improve advanced audio standards in the marketplace. For information on Aureal, its products, and its industry leading A3D audio technologies, please call Corporate Communications at 510-252-4582 or visit their website at http://www.aureal.com.

About Motorola


The Motorola Internet and Networking Group (ING) delivers Smart Access Technology to connect people and organizations in a world of converging communications. ING provides a full complement of wireline and wireless access solutions, including corporate networking, broadband communications, wireless content services and platform software. Please visit www.mot.com/ing for more information.

Motorola is a global leader in advanced electronic systems and services. It liberates the power of technology by creating software-enhanced products that provide integrated customer solutions and Internet access via wireless and satellite communications, as well as computing, networking, and automotive electronics. Motorola also provides essential digital building blocks in the form of embedded semiconductors, controls and systems. Sales in 1997 were $29.8 billion.


All product and service names profiled herein are trademarks and service marks of their respective companies. trademarks and registered trademarks previously cited are hereby recognized and acknowledged

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 risk 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


PR Contact:
Jonathan Hirshon
Horizon Communications
(408)969-4888, ext.101
jh@horizonpr.com

 

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