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According to Dataquest, a market research firm, 1999 worldwide production of DVD players has exceeded 6 million units, making DVD the fastest growing product in consumer electronic history, besides Video Compact Disk (VCD). Recent market research from Consumer Electronics Association (CEA) showed North America alone sold over 3.5 million DVD players in 1999. Worldwide DVD players in 2000 are expected to grow to exceed 10 million units.

``I am very pleased at the speed that our customers have adopted our new DVD solution,'' stated Robert Blair, President and CEO of ESS Technology. ``Our 3rd generation DVD chip provides the lowest cost, high-performance DVD solution available today.''

At the annual Consumer Electronic Shows held in Las Vegas last week, many of the OEMs exhibited their latest DVD players using ESS's solution. Major Japanese and Taiwanese OEMs such as Denon, Sony, Acer, Sampo, Raite and Diotech; and Apex and Shinco in China with ESS's DVD solution can be found at retail stores worldwide, including Best Buy, K-Mart, CompUSA, and Sears in the U.S.

``We are excited that ESS is starting to play a significant role in making DVD a mainstream consumer entertainment product,'' stated Johnston C. Chen, Vice President of Consumer Products and Internet Appliance group. ``We are pleased to have reached this milestone in such a short period, and we plan to continue to build upon this momentum with new features and functions to further expand our market share of the consumer entertainment market as well as the information and Internet appliance markets.''

About the ESS's DVD Solution

ESS's DVD solution is designed to offer a highly integrated and cost-effective DVD player solution with new levels of digital video and audio performance for the Consumer Electronics market. It is based on the production-proven Programmable Multimedia Processor (PMP) core architecture consisting of a 32-bit RISC CPU and a 64-bit Video Processor Engine. Key features include a built-in CPU for DVD navigation, MPEG-2 video & Dolby Digital decoding, sub-picture decoding, Content Scrambling System, On Screen Display processing, NTSC disc to PAL display (and vice versa) with SmartScale(TM), Virtual Surround, DTS audio, digital out and Karaoke.

ESS Technology

ESS Technology, Inc., a leader in Internet, communications, PC audio and digital video, provides advanced products enabling the convergence of communications, computer, consumer, and Internet markets.

ESS's subsidiary, ViAlta.com, Inc. provides advanced, easy-to-use products and applications for the Internet. Products include multi-media appliances, applications and content for the Internet, which enable the user to experience new levels of entertainment and e-Commerce.

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'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, not limited to, 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, as well as the other risks detailed from time to time in the SEC reports of ESS, including the reports on Form 10-K and Form 10Q. Actual results could differ materially from those projected in the forward-looking statements.

SOURCE: ESS Technology, Inc.