3DO Press Announcement

3DO and Cirrus Logic team to deliver advanced 3-D technology and entertainment to PC marketplace
Technology Accord Raises Bar for 3-D Realism on PCs

FREMONT and REDWOOD CITY, Calif., March 26, 1996 -- Cirrus Logic Inc. (NASDAQ: CRUS) and The 3DO Company (NASDAQ: THDO) today announced an agreement to develop 3-D graphics and video technology that will enable the PC to deliver arcade-class performance, raising the bar for entertainment on the PC.

The technology accord will combine 3DO's cutting-edge M2 3-D technology and software expertise with Cirrus Logic's world leadership in video graphics controllers to give millions of PC users the ability to experience the most advanced 3-D realism on their desktops.

Under the agreement, Cirrus Logic will license the 3-D portion of 3DO's M2 technology, which has already been validated in silicon. The companies will collaborate to integrate the M2 3-D engine with Cirrus Logic's video graphics controller technology and other PC technologies to develop next-generation 3-D accelerators. These high-performance graphics chips will be optimized for accelerating 3-D games written for Microsoft's recently announced Direct3D standard, the new Windows 95 API for 3-D applications. Cirrus Logic will manufacture, market and sell the accelerators, and will work with software providers to create content for this new level of 3-D performance.

"Cirrus Logic's partnership with 3DO adds an important technology and a new level of performance to our aggressive 3-D product roadmap," said Douglas J. Bartek, president of Cirrus Logic's Visual and Systems Interface Company. "The combination of our technologies provides a unique synergy that will enable us to deliver unsurpassed 3-D reality to the power gamer."

"Today's announcement marks our first major move into the PC marketplace and underscores our commitment to diversify the business into areas including consumer, software publishing, Internet and DVD," said Hugh Martin, president of The 3DO Company. "Cirrus Logic provides us with a large distribution base, leading-edge manufacturing and strong OEM partners to drive our technology and software into the PC arena."

3DO's 64-bit 3-D set-up engine is capable of processing more than one half million polygons per second peak, supporting complex photo realistic 3-D worlds. In addition, the rendering engine generates more than 100 million pixels per second, giving users more than 640 x 480 resolution and greater graphics detail, bringing the arcade experience to the PC. According to Dr. John Latta, president, 4th Wave, Inc., "This architecture will let software developers create titles that provide a whole new level of realism for the PC platform."

The 3-D graphics market is expected to be one of the fastest growing segments in the computer industry, with entertainment fueling most of the growth. Market research firm John Peddie Associates projects an installed base of up to 27 million 3-D units by the end of 1997 and 56 million 3-D units by 1998.

Headquartered in Fremont, Calif., Cirrus Logic Inc. is a leading manufacturer of advanced integrated circuits for the desktop and portable computing, telecommunications and consumer electronics markets. The company applies its system-level expertise in analog and digital design to innovate highly integrated, software-rich solutions. Additional information about Cirrus Logic and its subsidiaries can be accessed on the World Wide Web at http://www.cirrus.com/ or via fax-on-demand at 800-359-6414 (dial 510-249-4200 from outside the United States).

The 3DO Company, headquartered in Redwood City, Calif., designs, integrates and sells interactive technology and applications for the mass market. With offices in North America and Europe, the company licenses technologies and creates entertainment software for 32-bit and 64-bit video game platforms, the personal computer market and the Internet. Additional company information is available on the World Wide Web (http://www.3DO.com) and on America Online (keyword: 3DO).

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INDUSTRY SUPPORT FOR THE CIRRUS LOGIC / 3DO TECHNOLOGY AGREEMENT

Eric Engstrom, Direct X program manager, Microsoft Corporation, said, "We expect the partnership between Cirrus Logic and 3DO to provide products that will significantly boost 3-D applications running Microsoft's Direct3D. The combined effort should produce the processing and acceleration capabilities required to support a new class of sophisticated Internet, games, education, and business applications, giving users a quantum leap forward in their computing experience."

According to John Davies, director of Consumer Desktop Platform Marketing at Intel Corp., "The combination of 3-D geometry processing by high-performance Intel microprocessors and 3-D rendering by high-performance graphics accelerators, like those planned by Cirrus Logic, will make the PC the most compelling platform for next-generation 3-D graphics."

Paul Neurath, president of Looking Glass added, "Games designed to take advantage of Microsoft's Direct3D, Cirrus Logic's graphics technology and 3DO's advanced 3-D rendering engine will elevate game playing to a new dimension."

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3DO and the 3DO logos are trademarks and/or registered trademarks of The 3DO Company. Cirrus Logic and the Cirrus Logic logos are trademarks and/or registered trademarks of Cirrus Logic. All other brand or product names are trademarks or registered trademarks of their respective owners.