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TVIA UNVEILS MPEG-4 TECHNOLOGY FOR EMBEDDED INTERACTIVE CONSUMER DEVICES

TVM4™ software technology offers optimized design and performance in multiple embedded operating systems

　
　　SANTA CLARA, CALIFORNIA – April 15, 2003 – Tvia, Inc. (NASDAQ: TVIA), a leading provider of multimedia display processors for the advanced TV and emerging display markets, announced today that it has unveiled its MPEG-4 software technology designed for embedded systems in consumer products. The TVM4™ software technology can be used in enhanced DVD players, interactive TVs, digital video broadcasting set-top boxes, information appliances and mobile devices that utilize MPEG-4 to perform interactive multimedia applications.
　

MPEG-4 is the newest international standard for fixed and mobile web multimedia. Developed over five years by the Moving Picture Experts Group (MPEG) of the Geneva-based International Organization for Standardization (ISO), MPEG-4 is acclaimed by the industry as the convergence technology between the Internet and television. It is believed that MPEG-4 will simplify the development process of interactive content. Whereas interactive content has until now been overlaid onto active video from the client systems, MPEG-4 offers an integrated solution for interactive multimedia. The expected result will be a more enhanced and creative interactive experience. Examples include the ability for a viewer to provide instant feedback relating to a news or entertainment program; to go directly from a broadcast commercial to a website that provides discount coupons and purchase an advertised product; and to simultaneously watch a movie and browse a slide presentation for supplemental information relating to the movie.
　

"Our primary focus has been to develop products and technology that facilitate interactive applications through the seamless blending of multimedia from both television and Internet sources," said Eli Porat, president and chief executive officer of Tvia. “We believe that our experience in embedded multimedia applications has enabled us to provide the TVM4™ software technology with features that will further enhance interactive applications such as video-on-demand, interactive presentations, corporate broadcasting, digital surveillance and web browsing.”
　

Tvia’s TVM4™software technology includes all the features of the MPEG-4 industry standard including superior video quality as compared to VCD (MPEG-1) or DVD (MPEG-2) at a bit rate using as much as 50% less bandwidth. Furthermore, the embedded-centric design of the TVM4™ software technology is modular, allowing functions to be scalable to the size and application of the system. Mobile interactive devices, for example, might require more basic features than an advanced interactive set-top box. The optimized design and performance of the TVM4™ software technology can be applied to both products. In addition, TVM4™ can operate over multiple embedded operating systems including Windows® CE and LINUX.
　

Bo Liu, Tvia’s vice president of software development commented, "Our TVM4™ software technology is architected to meet the standard design requirements of consumer embedded system applications with a scalable, portable interface that is also small in footprint. Moreover, Tvia’s experienced embedded system development team utilizes the TVM4™ software technology to create custom embedded designs.”
　

Initial evaluation of the TVM4™ software technology can be made by downloading Tvia’s TVM4™ player for the Windows® operating system at www.tvia.com. Users downloading the TVM4™ player will gain access to multiple Tvia MPEG-4 files as well as links to other MPEG-4 sites. “Our goal in offering numerous options to users of the TVM4™ player and software technology is twofold: first, we demonstrate that the TVM4™ software technology offers easy design adaptability supporting various embedded operating systems and system devices; second, we illustrate our capability and expertise in building various applications with our technology,” said Bo Liu.
　

Tvia Inc. is an active member of the MPEG-4 Industry Forum. More information on M4IF is available at www.m4if.org
　

ABOUT TVIA

　　Tvia, Inc. enhances a viewer’s experience through the simultaneous presentation of multiple independent media streams on one or more displays. Tvia’s multimedia display processors accept video, graphics, and audio signals from terrestrial broadcast, narrow band telephone lines, cable, satellite and the Ethernet to deliver high quality, interactive picture and audio. Tvia’s semiconductor and software products focus on the advanced TV and emerging display markets. Tvia products enable and enhance services such as video-on-demand (VOD), electronic program guides (EPG), security systems, video conferencing and various applications for picture-in-picture or multiple image displays. More information on Tvia is available at www.tvia.com.
　　

Except for historical information contained herein, the matters set forth in this press release are forward-looking statements within the meaning of the “safe harbor'' provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, the statements regarding generating revenues while controlling expenses, margins, profitability, and product releases. Actual results could differ materially from that predicted in the forward-looking statements. These forward-looking statements are subject to the risks and uncertainties that may cause actual results to differ materially, including, but not limited to product capabilities, the ability to meet shipment timetables, the ability of customers to incorporate Tvia’s products into their products, the impact of alternative technologies and competitive products and other risks detailed from time-to-time in Tvia’s SEC reports, including the Company’s Quarterly Report on Form 10-Q for the period ended December 31, 2002 filed with the Securities and Exchange Commission (“SEC”) on February 7, 2003. These forward-looking statements speak only as of the date hereof. Tvia disclaims any intent or obligation to update these forward-looking statements.