MegaChips and Displaytech Introduce Digital Camera Imaging Solution

Market Leader in Image Processing to Manufacture Chips for Displaytech QVGA Displays

TOKYO, October 3, 2000 -- MegaChips Corporation, a manufacturer of LSI image processing chips, today announced it is working with Displaytech Inc. to design and manufacture image processing chips specifically enabled to work with Displaytech's QVGA microdisplays.

MegaChips' high-performance LSI imaging chip will be combined with Displaytech's microdisplay to offer digital camera OEMs an image capture and display solution of outstanding quality. Able to process images up to 16-mega pixels CCD, MegaChips' LSI far surpasses the current top-end market offering of six-mega pixels. The chip offers a capture rate of six pictures/second at three-mega pixels and 60 pictures/second at VGA, making it the fastest chip commercially available.

"The large amount of information our chips process directly translates into the highest-quality digital photos available today," said Akihiko Saito at MegaChips. "The high-resolution and outstanding image quality of Displaytech's microdisplays make them a natural choice to display these images. By manufacturing processing chips for Displaytech, we are offering our customers performance and image quality previously reserved for high-end film cameras."

Established in 1990, MegaChips is a leading manufacturer of image processing semiconductors for the home entertainment and electronics industries. MegaChips will begin manufacturing chips for Displaytech's microdisplays in the fourth quarter of this year. The combined displays and chip sets will be available to camera OEMs in the first quarter of 2000.

"We need to offer our digital camera OEMs a display package that combines superior image quality with high-performance processing capabilities," said J.P.VALiulis, senior director of business development for Displaytech. "Working with MegaChips means we can offer our customers display performance suiTABLE for professional studios, but at a price point in the range of the pocket camera market. This will allow manufacturers to design new concepts for the next generation of consumer digital cameras."

Smaller than a postage stamp, microdisplays offer an attractive alternative to conventional display options. Their size and light weight translate into smaller, thinner and lighter camera designs. Microdisplays also use significantly less power than other display options, meaning battery life is measured in months, rather than hours.

About MegaChips

MegaChips Corporation, based in Osaka, Japan develops and manufactures LSIs and systems in imaging region for consumer video devices and industrial equipments, including high-speed original video compressing/decompressing LSI, multiwindow LSI for TV, Scan-Convert LSI, Echo Canceller, Custom MASK ROM, PC-less Video sever system, PC-less digital image recorder, PC-less reception system, PC-less point-to-point remote monitoring system, PC-less mobile monitoring system, etc. Company's Web site:
http://www.megachips.co.jp ( Japanese )
English information: http://www.megachips.co.jp/ir/ir_99e.html

About Displaytech

Displaytech, Inc. makes and sells microdisplays with superior image quality for electronic viewfinders in consumer digital still cameras, camcorders, and mobile communication devices. The low power and compact form factor of Displaytech's LightView microdisplay product line enable innovative end-product design. The patented Ferroelectric Liquid Crystal (FLC) technology at the heart of the Company's microdisplays is also used in a line of ultra-fast photonics switching products for emerging optical applications. A fabless manufacturing model positions Displaytech to keep pace with the high-volume consumer electronics market. For more information on all Displaytech products, press releases, and images, visit www.displaytech.com.

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LightView is a trademark of Displaytech Inc.