SCEI and NVIDIA Annouce Joint GPU Development for SCEI's Next-Generation Computer Entertainment Syst

http://www.nvidia.com/object/IO_17342.html

Sony Computer Entertainment Inc. and NVIDIA Announce Joint GPU
Development for SCEI's Next-Generation Computer Entertainment System

For further information, contact:

David Roman
NVIDIA Corporation
Tel: 408-486-6250


Sony Computer Entertainment Inc.
Corporate Communications (in Tokyo)
Tel: 03-6438-8686

FOR IMMEDIATE RELEASE:

TOKYO and SANTA CLARA, CA-DECEMBER 7, 2004-Sony Computer
Entertainment Inc. (SCEI) and NVIDIA Corporation (Nasdaq: NVDA) today
announced that the companies have been collaborating on bringing
advanced graphics technology and computer entertainment technology to
SCEI's highly anticipated next-generation computer entertainment
system. Both companies are jointly developing a custom graphics
processing unit (GPU) incorporating NVIDIA's next-generation
GeForce™ and SCEI's system solutions for next-generation computer
entertainment systems featuring the Cell* processor.

This collaboration is made under a broad, multi-year, royalty-bearing
agreement. The powerful custom GPU will be the graphics and image
processing foundation for a broad range of applications from computer
entertainment to broadband applications. The agreement will encompass
future Sony digital consumer electronics products.

"In the future, the experience of computer entertainment systems and
broadband-ready PCs will be fused together to generate and transfer
multi-streams of rich content simultaneously. In this sense, we have
found the best way to integrate the state-of-the-art technologies from
NVIDIA and SCEI," said Ken Kutaragi, executive deputy president and
COO, Sony Corporation, and president and Group CEO, Sony Computer
Entertainment Inc. "Our collaboration includes not only the chip
development but also a variety of graphics development tools and
middleware, essential for efficient content creation."

"We are thrilled to partner with Sony Computer Entertainment to build
what will certainly be one of the most important computer entertainment
and digital media platforms of the twenty-first century," added
Jen-Hsun Huang, president and CEO, NVIDIA. "Over the past two years
NVIDIA has worked closely with Sony Computer Entertainment on their
next-generation computer entertainment system. In parallel, we have
been designing our next-generation GeForce GPU. The combination of the
revolutionary Cell processor and NVIDIA's graphics technologies will
enable the creation of breathtaking imagery that will surprise and
captivate consumers."

The custom GPU will be manufactured at Sony Group's Nagasaki Fab2 as
well as OTSS (joint fabrication facility of Toshiba and Sony).

Note:
* "Cell" is the code-name for an advanced microprocessor under
development by IBM, Toshiba and Sony Group.

About Sony Computer Entertainment Inc.
Recognized as the global leader and company responsible for the
progression of consumer-based computer entertainment, Sony Computer
Entertainment Inc. (SCEI) manufacturers, distributes and markets the
PlayStation(R) game console and PlayStation(R)2 computer entertainment
system. PlayStation has revolutionized home entertainment by
introducing advanced 3D graphic processing, and PlayStation 2 further
enhances the PlayStation legacy as the core of home networked
entertainment. SCEI, along with its subsidiary divisions Sony Computer
Entertainment America Inc., Sony Computer Entertainment Europe Ltd.,
and Sony Computer Entertainment Korea Inc. develops, publishes, markets
and distributes software, and manages the third party licensing
programs for these two platforms in the respective markets worldwide.
Headquartered in Tokyo, Japan, Sony Computer Entertainment Inc. is an
independent business unit of the Sony Group.

About NVIDIA
NVIDIA Corporation is a worldwide leader in graphics and digital media
processors. The Company's products enhance the end-user experience on
consumer and professional computing devices. NVIDIA graphics processing
units (GPUs), media and communications processors (MCPs), and wireless
media processors (WMPs) have broad market reach and are incorporated
into a variety of platforms, including consumer and enterprise PCs,
notebooks, workstations, PDAs, mobile phones, and video game consoles.
NVIDIA is headquartered in Santa Clara, California and employs more
than 2,000 people worldwide. For more information, visit the
Company's Web site at www.nvidia.com.

Certain statements in this press release including, but not limited to,
statements as to the development of the custom GPU, the benefits of the
collaboration, the benefits, uses, and capabilities of the custom GPU
and computer entertainment systems featuring the Cell processor, the
fusion of computer entertainment systems and broadband systems, the
agreement between the parties, and the manufacture of the custom GPU
are forward-looking statements that are subject to risks and
uncertainties that could cause results to be materially different than
expectations. Such risks and uncertainties include, but are not
limited to whether SCEI and NVIDIA continue the collaboration, whether
SCEI continues to use the NVIDIA custom GPU as the foundation for a
broad range of its applications, market acceptance of SCEI's
next-generation computer entertainment system,, market acceptance of
new products and technology, delays in ramping new products into
production, manufacturing delays and defects, incompatibility of
technologies, reliance on third-party manufacturers, general industry
trends including cyclical trends in the semiconductor market, delays in
integration of our products, the impact of competitive products and
pricing alternatives, and other risks detailed from time to time in the
NVIDIA reports filed with the Securities and Exchange Commission
including its Form 10-Q for the quarter ended October 24, 2004. These
forward-looking statements speak only as of the date hereof. NVIDIA
disclaims any obligation to update these forward-looking statements.