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ESS Technology Announces Super Audio CD Capability for Its DVD Chips

Super Audio CD is a New Hiqh-Quality Sound Storage and Reproduction System

FREMONT, Calif., Jan. 18 /PRNewswire-FirstCall/ -- ESS Technology (Nasdaq: ESST) a leading provider of silicon solutions for digital video, digital home systems, and home networking solutions announced today that it has obtained a license from Philips to incorporate the new Super Audio CD (SACD) format into ESS chips. ESS intends to add SACD capability to its Vibratto DVD single-chip solution family. ESS plans to introduce SACD enabled chips in the second quarter of 2002. Super Audio CD is a new generation audio storage and reproduction technology developed jointly by Philips and Sony Corporation.

SACD players are becoming popular in the worldwide market because they are designed to provide higher quality of audio and there are more published titles becoming available. The technology for SACD is called Direct Stream Digital (DSD), which simplifies the recording and playback mechanism and results in better audio frequency response and dynamic range. DSD technology increases the resolution of music by more closely following the original waveform of the music and it reproduces music that is remarkably pure and faithful to the original waveform when played back.

Super Audio CD can accommodate 2-channel stereo music, as well as up to 6-channel audio with text and image data. It is backward compatible with the older Audio CD format. SACD titles can be recorded in a hybrid format, which is able to playback on regular CD players.

Patrick Ang, executive vice president and COO at ESS Technology stated, ``ESS is excited once again to be able to bring additional capabilities for DVD players to the market with the incorporation of the new SACD format in our Vibratto DVD chips. This additional functionality is one more example of why we believe DVD players will become the key multi-function platform for digital home entertainment.''

About ESS Technology

ESS Technology, Inc., is a leading supplier of high-performance feature-packed chips for the rapidly expanding DVD and digital entertainment markets. The company is also a leading provider of solutions for applications in the growing consumer entertainment market. ESS provides advanced products that enable the emergence of digital home systems that deliver and manage entertainment and information in the home.

ESS, headquartered in Fremont, California, has R&D, sales, and technical support offices worldwide. ESS Technology's common stock is traded on the Nasdaq under the symbol ESST. ESS Technology's web site address is: http://www.esstech.com .

The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the possible reduction of consumer spending occasioned by terrorist activity and armed conflict, the timely availability and acceptance of the Company's new products, the impact of competitive products and pricing, the dependence on continued growth in demand for PC and consumer multimedia products, the fact that the initial determinations described herein are subject to further review and appeal, and the other risks detailed from time to time in the SEC reports of ESS, including the reports on Form 10-K and Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.

SOURCE: ESS Technology

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