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Hot New Title from 3DO Combines Rich Role-Playing Experience and Fantastic Imagery with Immersive Audio Using A3D Technology

"The ongoing character development, interconnected quest-based systems, and the living, breathing worlds of the role-playing genre have always delivered the most immersive experiences emphasizing story over action and dazzle," said Skip McIlvaine, Aureal's Developer Relations Manager. "Now, with Might and Magic VII, pensive and patient role-players and speed-freak 3D technophiles can both get their fix with intense, immersive 3D audio via Aureal's A3D and 3D graphics via a number of APIs. There was a great deal of interest from role-playing gamers for A3D support in Might and Magic VII and 3DO has delivered in a big way."

"We broke new ground with Might and Magic VII," said Mark Caldwell, General Manager of the New World Computing division of 3DO. "When we saw the opportunity to add advanced 3D audio, we knew Aureal's technology was a given. The game is more realistic and exciting with the addition of Aureal's A3D and we think a new breed of role-players will appreciate the speed and enhancements of our new sound, graphics, and AI engines."

About A3D Aureal A3D is an award-winning audio technology that enables an immersive audio experience by surrounding the listener with sounds in all three dimensions using ordinary headphones or two or more speakers. A3D is effective in increasing the reality of a simulated experience by recreating the multitude of auditory cues that allow humans to perceive their environment in everyday life.

A3D is used, and planned for use, in hundreds of games available from publishers including Activision, Eidos, GT Interactive, Infogrames, Interplay, LucasArts, Sierra, and many others to deliver a lifelike, immersive playing experience. A3D is also integrated into the 3D Web development and browsing software products of Aureal's strategic Internet partner Flatland Online, Inc., bringing the power of 3D audio to the newly emerging 3D Web.

About Aureal Semiconductor Aureal is a leading provider of advanced audio solutions for the computer, consumer, entertainment, Internet, and professional audio markets. The company designs, builds and distributes advanced audio semiconductor and software solutions for personal computers and consumer electronics devices through the OEM, integrator/reseller/VAR and direct-to-customer channels. Aureal also licenses technology designed to define and improve advanced audio standards in the marketplace.

Leading industry partners include Compaq Computer Corporation, Dell Computer Corporation, Sony Electronics and Diamond Multimedia Systems. Aureal's award-winning product line includes A3D positional audio technology, Vortex® audio processors and Vortex-based sound cards, and A3D Pro sound design software. For more information on Aureal Semiconductor or its products and industry leading audio technologies, please visit our Websites at www.aureal.com and www.a3d.com.

Forward-Looking Statements Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties including, but not limited to, dependence on the PC and consumer electronics industries and on product lines based on new technologies; foundry capacity, availability and reliability; competition and pricing pressures; and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.