Matsushita to Acquire 64-bit Interactive High Speed and High-Performance Graphic Processing and OS Technology

25^th October 1995

Matsushita to Acquire 64-bit Interactive High Speed and High-Performance Graphic Processing and OS Technology – An Exclusive Worldwide Right from 3DO

Matsushita Electric Industrial Co., Ltd. (MEI), of Osaka, Japan, announced today an agreement in principle to acquire, from The 3DO Company of Redwood City, California, exclusive rights to use 3DO-developed interactive, high-speed, high-performance graphic processing (64-bit M2) technology and its operating system (OS) technology in both hardware and software products. Following approval from U.S. and Japanese authorities, the agreement will be signed officially.

MEI will use this technology to develop home information terminal equipment, including a 64-bit next-generation interactive system (using CD-ROM and Digital Video Disk technology) and set-top boxes. In addition, Matsushita will apply the new technology to commercial arcade games, computer-related equipment, hardware, software and the networking of future multimedia products.

This agreement will allow MEI to license other hardware companies and third-party software developers. Matsushita will also promote the technology, together with 3DO.

MEI will pay 3DO a $100 million license fee, plus any additional royalties.

As the first product application, a 64-bit M2 interactive system will be launched in the second half of 1996. Also scheduled for launching at the same time is an “M2 accelerator” adapter designed as a connection to current REAL 3DO interactive multiplayers. By connecting the accelerator with the REAL multiplayer, the adapter will provide users of the current system an upgrade to 64-bit M2 interactive system capabilities.

“In order to succeed in this business, we need to acquire the rights and become the licenser of the interactive, high-speed, high-performance graphics processing and operating system technology offered by the M2 architecture,” said Mr. Mikio Higashi, managing director and member of the board of Matsushita Electric Industrial Co., Ltd.

“We will implement this technology in a wide variety of applications in both consumer and commercial audio, video and computer businesses.”