VIA and S3 Announce Agreement

Industry Leaders Cooperate to Develop Integrated Chipsets

Taipei, Taiwan, April 7, 1999 - Combining the respective strengths of two
of the PC industry's leading design houses, VIA Technologies, Inc. and S3
Incorporated today announced a strategic agreement in which the companies
will partner to design and market a range of core logic chipsets with
integrated graphics. Targeted at the performance end of the value segment,
the resulting family of products will establish both companies as leaders
in the burgeoning market for PCs with integrated graphics. A product
introduction is slated for the second half of this year.

"This is an outstanding progression for both VIA and S3 because it allows
us to combine forces to develop and deliver compelling solutions that will
put us at the top of the integrated chipset ladder, stated Wen Chi Chen.
President and CEO, VIA. "The addition of a high-performance 3D engine
expands our chipset range to meet every segment of the mainstream PC market
top-to-bottom."

"This venture with VIA will be a key milestone in our strategic plan to
drive PC integration and deliver differentiated products to our customers,"
said Ken Potashner, president and CEO of S3 Incorporated. "We expect that
the joint S3/VIA chipsets will complement our existing roadmap of
graphics-only solutions - and together, we believe this represents the
right suite of products for multiple market segments with high-volume OEMs,
add-in-card and motherboard manufacturers."

The first S3/VIA product, codenamed SavageNB, will combine the best of S3's
Savage4 graphics engine with VIA's Apollo Pro core logic design. By the
integrating the two key technologies, S3 and VIA effectively combine three
components (North Bridge, the graphics controller and frame buffer) into a
single chip configuration. In high-performance designs that require
multiple frame buffers, this can reduce system chip count by as many as 9
chips. In addition to the substantial cost benefits, the integrated
products also reduce the required space for graphics, core logic and frame
buffers by more than 50 percent, which will enable OEMs to deliver smaller
form factors or add new technologies without increasing board space.
Specific details about the chip will be available when the two companies
officially launch the new product in the second half of 1999.

VIA's agreement with S3 follows a similar one made between VIA and Trident
Microsystems, Inc. in August of last year. The S3 agreement does not
supercede the VIA/Trident relationship. Rather, VIA will continue
development and support efforts with Trident on announced and upcoming
entry level products, while starting long-term development of its family
of products with S3. VIA and Trident currently market branded versions of
single Super Socket 7 integrated solution known as the VIA Apollo MVP4 and
the Trident Cyberblade i7 respectively.

About VIA
Founded in 1987, VIA Technologies, Inc., designs, engineers and
manufactures cost-effective, highly integrated, high functionality system
logic chip sets and associated peripherals for manufacturers of desktop and
portable PC systems. VIA is on the world wide web at
http://www.via.com.tw.

About S3
S3 Incorporated, founded in 1989 with headquarters in Santa Clara,
California, is the world's largest supplier of multimedia acceleration
hardware and its associated software. S3 is committed to applying its
expertise in audio, video, graphics and platform acceleration to create
innovative and affordable products for the home, desktop and mobile
markets.


CONTACTS

US inquiries
Dean Hays, Director of Marketing
T: (1-510) 683-3300 ex. 3328
F: (1-510) 683-3301
E: dean@viatech.com

International inquiries
Sean Davidson, Marketing Manager
T: (886-2) 2218-5452 ex.6201
F: (886-2) 2218-5453
E: sdavidson@via.com.tw