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These include SiN, Heretic II, and Heavy Gear II -- each title will use A3D's psychoacoustic-based audio processing for 3D audio functionality. A3D enables positional 3D audio over headphones or two or more speakers. In addition, Activision expects to release patches for SiN and Heretic II which will support Aureal's next generation A3D 2.0 technology.

A3D will be used to add heightened realism for both single and multi-player gaming modes and will effectively complement the stunning graphics and artificial intelligence routines used in all three titles. Hearing blasts exploding by your left ear or hearing an enemy approaching behind you before you see him add to the ultimate level of realism in each of these games.

``Activision is one of the leading game publishers in the business and each of these A3D titles has 'hit' written all over it,'' said Skip McIlvaine, Developer Relations Manager at Aureal. ``Activision is effectively extending their successful game franchises with Heavy Gear II, Heretic II and Interstate '82, while SiN breaks new ground. We believe that the use of A3D in each of these titles will not only dramatically add to the 'wow factor' of each of these games, but will bring a new level of realism and utility to the aspect of gaming growing in importance -- quality sound.''

``I was blown away by the potential for Aureal's 2.0 technology the first time I heard it,'' said Steve Stringer, Producer at Activision. ``It is a perfect match for Heretic II's style of gameplay. The technology allows us a fully-scalable solution that offers users of any sound card vastly improved audio, but if you have a sound card that uses the Vortex technology, you'll be amazed at how much the realistic, ambient audio adds to the game.''

A3D Information

Aureal A3D is an audio technology that enables a realistically-perceived experience by surrounding the listener with sounds in all three dimensions -- using only a single pair of ordinary speakers or headphones. Aureal A3D is based on recreating all the hearing cues that allow us to perceive sounds in everyday life. Since people can hear sounds three dimensionally in the real world with only two ears, it must be possible to create sounds from two speakers that have the same effect.

A3D was initially developed for NASA to create the ultimate audio simulation environment and is now used in over 100 games shipping or under development on the Microsoft Windows platform, including Half-Life from Sierra, Unreal from GT Interactive, Trespasser: Jurassic Park from DreamWorks Interactive, Incoming from Rage Software, Descent: FreeSpace from Interplay, Battlezone from Activision, and Jedi Knight from LucasArts. A3D is also supported by leading VRML browsers to enable lifelike sound across the Internet.

Compaq Computer Corporation, the world's leading personal computer company, features A3D on its complete line of new Presario desktop computers. Dell Computer Corporation also offers customers a wide range of A3D-enabled systems. Major soundboard vendors using A3D and/or Aureal's Vortex 3D audio chip include Diamond Multimedia, Turtle Beach and Xitel.

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 sound cards 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 our Website at www.aureal.com

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.

SOURCE: Aureal Semiconductor Inc.