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New API Enables Developers to Take Advantage of New Features Including Geometry-Based Reverb Effects, and Support for MP3, Streaming Audio and Dolby Digital

A3D 3.0 builds upon the solid technological foundation of Aureal's award-winning A3D Application Programming Interface (API), adding advanced audio features designed to meet the needs of cutting-edge interactive entertainment developers.  By incorporating A3D technology into their software products, developers can leverage the large installed base of A3D-enabled hardware using Aureal's proven 3D audio technology to provide their customers with the most interactive and immersive experience available on the PC today.

A3D 3.0 adds a number of key new features to the already-rich A3D feature set:

* High-quality geometry-based reverb effects enable the creation of detailed, realistic aural environments.   A3D reverb effects can either use simple, static reverb presets or can utilize the early reflections already calculated by Aureal Wavetracing^TM to create rich, geometry-based reverberation.

* New volumetric sound sources allow for area aural effects, enabling developers to create much more realistic environments than are possible with only point sources.  An example would be placing the listener in the middle of a cheering crowd.

* Support for Dolby Digital playback provides an industry standard quality solution for linear surround sound playback.
* Automatic support for streaming audio has been added, eliminating the complex layer of development normally required for client/server interactive entertainment applications that use existing audio solutions.

* New support for MP3-format audio decoding and playback within 3D-space enhances Internet audio and allows the development of new types of audio applications. Use of MP3 decoding and playback is provided by Aureal to its developers free of licensing charges.

* User-customization is now possible through the use of downloadable HRTF sets, providing a more individualized positional audio experience when A3D 3.0 is coupled with Aureal's retail soundcards.  Users can choose from a selection of "heads," picking the one that most closely matches their own physical characteristics, to improve positional audio performance.

One of the most exciting new features in A3D 3.0 is full support for multi-channel Dolby Digital playback.  The API now provides a unified audio solution, offering the highest quality rendering of interactive, 3D audio through A3D's advanced positional algorithms, and playback of linear surround sound content through integrated support for Dolby Digital.  By combining these powerful technologies, Aureal and Dolby offer an engine that can meet the needs of game developers, sound designers, and musicians - providing a consistent, quality aural experience throughout all areas of an interactive entertainment title including interactive gameplay, cutscenes and introductions, and background musical soundtracks.

"By enhancing Aureal's A3D engine with support for multi-channel Dolby Digital we are providing an exciting and stable environment for PC game developers, especially those that want to take advantage of the emerging DVD-ROM platform," said Ed Schummer, Vice President of Licensing at Dolby Labs.

"The release of the A3D 3.0 SDK further solidifies Aureal's leadership position in the interactive audio space," said Brendan O'Flaherty, Senior Vice President of Aureal's System's Group.  "A3D 2.0 gave developers the freedom to concentrate on content development instead of the mechanics of making 3D audio work.   With 3.0, we've extended the flexibility and power of the A3D engine through the introduction of advanced features such as reverb effects, support for MP3 and streaming audio, and integrated Dolby Digital support."

About Aureal's A3D 3.0 SDK
The A3D 3.0 SDK is a turnkey solution, containing everything needed to build software applications that harness the full power of A3D's advanced technologies.  In addition to drivers, tools, and documentation, Aureal offers free technical support to developers and QA departments to ensure a quick development path and great results. 

The A3D 3.0 SDK will be free to qualified developers and includes the following:

        * One Aureal Vortex-2 based retail sound card
        * Complete A3D 3.0 API reference manuals
        * A3D tutorials, demos, tools, and buildable source code
        * Shippable, royalty-free A3D 3.0 sound engine (scalable to any sound card)
        * A3D drivers and logos
        * Vortex data sheets
        * Free technical support

For more information, please visit Aureal's software partners page at:
http://www.aureal.com/partners/pa_soft1.htm

About Aureal
Aureal is a leading provider of advanced audio solutions for the computer, entertainment, Internet, and professional audio markets. The company designs, builds and distributes advanced audio semiconductor, add-in board, and software solutions for personal computers 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, Hewlett-Packard, IBM Personal Systems Group, Micron Electronics, and Sony Electronics. 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 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 industry 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.

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