NeoMagic, M-Systems Power Windows Mobile-based Multimedia Smartphones

3/4/2004 - NeoMagic Corporation (Nasdaq: NMGC), a pioneer in Applications Processors for multimedia-rich mobile phones, wireless personal digital assistants (PDAs), and other mobile handheld systems and M-Systems (Nasdaq: FLSH) announced that TCL Corporation (China ShenzhenSE: 00100) is using NeoMagic's MiMagic Applications Processors with M-Systems' Mobile DiskOnChip to power its Windows Mobile-based Smartphones. TCL will begin shipping its first Smartphone, called the OC01, in the early summer.

The MiMagic 5 enables the OC01 to provide sophisticated multimedia functionality, such as video, still pictures and games, at low power. As the world's smallest high-capacity on-board memory, Mobile DiskOnChip provides the OC01 with high performance NAND flash storage capacity for multimedia content.

"TCL is very focused on the smartphone market and we are significantly ramping our production capacity as we strive toward our goal of establishing a dominant market position. This makes our choice of strategic vendors critical," said Dr. Andy Zhang, deputy general manager of TCL's Smartphone division. "We are pleased with the close collaboration we shared with Microsoft, M-Systems and NeoMagic on the OC01 Windows Mobile-based Smartphone, as well as on the other Windows Mobile-based Smartphone projects that we are developing," concluded Zhang.

"In designing Windows Mobile software, Microsoft sought to create a powerful platform upon which our industry partners could build innovative applications and services for the mobile information worker and consumer alike," said Kevin Lee, group product manager for the Mobile Devices Division at Microsoft Corp. "We're excited to be working with NeoMagic and M-Systems, which in their work with TCL have created a unique solution that delivers additional value to Windows Mobile-based devices."

"We are excited to be part of the new feature-rich mobile initiatives from TCL," said Dan Inbar, M-Systems' vice president of mobile marketing. "Enabling mobile products with high-performance, on-board memory with companies like TCL, Microsoft and NeoMagic is one of M-Systems' core competencies. By working together, we can offer unique solutions to our customers."

"For the last three years, NeoMagic has been completely focused on enabling the multimedia applications that are now coming to the smart phone market," said Mark Singer, NeoMagic's vice president of marketing. "It is gratifying to have leading-edge companies like TCL embrace NeoMagic's technology, as well as to work with companies like Microsoft and M-Systems that further enhance our ROI," Singer added. "We look forward to watching the OC01 come to market, as well as to working on other TCL products with Microsoft and M-Systems."

TCL's OCO1 provides a rich user experience with multimedia features including a camera, video record and playback capability, an MP3 player, and a 3D gaming platform.

M-Systems' Mobile DiskOnChip provides reliable and fast on-board memory to enable advanced storage and multimedia capabilities within mobile devices. Mobile DiskOnChip products are available in a wide range of capacities from 16MBytes to 128MBytes in a small BGA form factor, targeting mobile markets. Based on leading-edge NAND flash technology (both SLC and MLC), an ultra-thin controller and the most advanced flash management software, DiskOnChip provides an optimized on-board memory solution with an ideal cost structure. Mobile DiskOnChip has support within Microsoft Windows Mobile software allowing independent boot capability, storing and paging-on-demand on the operating system (OS), bullet proof file system storage for user data such as still pictures, video content, personal information manager (PIM) content, games and music; and supports advanced features such as hardware protected partition, unique ID, OTP, and build-in error detection and correction.

The MiMagic family is NeoMagic's line of Applications Processors for multimedia-rich handheld devices. MiMagic products combine an ARM CPU, a variety of I/O functions, and a high level of multimedia hardware and software into single-chip solutions that provide the heart of low-power, high performance mobile phones and wireless PDAs.

About TCL
TCL Corporation (China Shenzhen 000100) is a major industry leader in the design, manufacture and sale of a wide range of multimedia electronic consumer products in PRC and overseas markets. Riding on the success of its mainstream businesses in multi-media consumer electronics products, TCL is expanding into the areas of information technology and communication products, including PCs, mobile handsets, distance learning software and a range of value-added services. With an extensive nationwide sales network, top quality products, comprehensive after-sales services and strong research and development capabilities, TCL is regarded as one of the most reputable and valuable brand names in the PRC.

About M-Systems
M-Systems designs, develops and markets innovative flash data storage solutions for digital consumer electronics markets. M-Systems primarily targets two fast-growing digital consumer electronics markets: the USB (universal serial bus) flash drive market with its DiskOnKey product and the multimedia mobile handset market with its Mobile DiskOnChip products. For more information, please contact M-Systems through the web site located on the Internet at

About NeoMagic
NeoMagic Corporation, based in Santa Clara, California, enables new generations of handheld systems with Applications Processors that are designed to offer the lowest power, smallest form-factor and best multimedia features and performance. The Company is a pioneer in the integration of complex logic, memory and analog circuits into single-chip solutions. Information on the company may be found on the World Wide Web at

NeoMagic, and the NeoMagic circle logo are registered trademarks, and MiMagic is a trademark, of NeoMagic Corporation.

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