Date : 2001-03-13

Imagination Technologies Group plc (LSE: IMG), the leading provider of human
computer interface intellectual property (IP), reports that
STMicroelectronics (NYSE: STM) has today launched its revolutionary KYRO
II(tm) 3D graphics and video accelerator based on PowerVR(tm) technology
from Imagination Technologies. STMicroelectronics has also announced a major
customer, Hercules (Euronext Paris, Guillemot - 6672), who is launching
graphics cards based on KYRO II. Hercules, part of the Guillemot
Corporation, is one of the most respected names in PC graphics cards and a
leading supplier of branded graphics products worldwide.

KYRO II is ST\'s second generation of PC graphics controllers based on the
PowerVR architecture. By its more intelligent use of computing and memory
resources, KYRO II sets a new performance standard in the graphics processor
industry. KYRO II silicon is now in volume production. Under licensing
arrangements, Imagination Technologies receives royalties on processors
based on PowerVR, including KYRO and KYRO II.

KYRO II utilizes the innovative PowerVR Tile Based Rendering to avoid the
memory bottleneck and deliver state-of-the-art 3D graphics image quality and
leading edge 3D graphics performance, with crisp 2D graphics, studio quality
video playback, and DVD decode support.

Hercules\' 3D PROPHET 4500 features the best of KYRO II technology and is the
world\'s first top-performance graphics board that is within every gamer\'s
reach. It combines a very efficient design, 64MB of fast on-board RAM and
the perfect drivers to offer the ultimate experience to the whole gaming
community with both current and future games. 3D PROPHET 4500 demonstrates
clear performance leadership when compared on popular games and industry
benchmarks with other products in its class.

Claude Guillemot, President of Hercules Technologies says: "The key in
computer graphics is today to be able to cope with the increasing scene
complexity and bandwidth and large texture volumes without sacrificing the
perfect quality of high resolution images. ST, with its technical expertise,
came out in an incredibly short time with a breakthrough architecture for
the KYRO II graphic controller that will delight the most ambitious game
developers. Which is why we have chosen ST\'s KYRO II as the foundation of
our new product family."

Tim Chambers, VP and General Manager of ST Graphics Product Division says:
"We are delighted with Hercules\' decision to use the KYRO II in their
critically acclaimed 3D PROPHET product line. As the leading independent
graphics board supplier in the US retail market, Hercules has the brand
recognition and market presence to bring the very significant benefits of
KYRO II to the broadest numbers of consumers."

Hossein Yassaie, CEO of Imagination Technologies says: "Through the inherent
benefits of the PowerVR architecture, ST\'s KYRO II will deliver
performance-leading graphics combined with enhanced image quality at an
affordable cost. Hercules\' extensive market presence will strongly reinforce
PowerVR as a key technology in the PC space."

About Hercules Technologies

Founded in 1982 in the U.S., Hercules developed the industry\'s first
high-resolution graphics board for personal computers. From its roots in
establishing the monochrome graphics standard, Hercules proceeded to pioneer
advances in color graphics solutions. Over the years, Hercules has
consistently produced innovative and exciting products including graphics,
image and video products, and recently, audio solutions, mostly for the
gaming community. In November 1999, Hercules was purchased by Guillemot

The Guillemot Corporation group develops, manufactures and distributes PC
and console peripherals, providing high-quality products for gamers and
music enthusiasts worldwide. The group is also proud to include officially
licensed Ferrari, NASCAR, Top Gun and US Air Force products as part of its
accessories line designed by Thrustmaster, acquired by the group in July
1999. Guillemot Corporation is listed on the Paris Stock Exchange, Sicovam
code 6672, and is currently present in 14 countries, distributing its
products in a total of 45 countries.

About STMicroelectronics

STMicroelectronics (formerly SGS-THOMSON Microelectronics) is a global
independent semiconductor company, whose shares are traded on the New York
Stock Exchange, on the ParisBourse and on the Milan Stock Exchange. The
Company designs, develops, manufactures and markets a broad range of
semiconductor integrated circuits (ICs) and discrete devices used in a wide
variety of microelectronic applications, including telecommunications
systems, computer systems, consumer products, automotive products and
industrial automation and control systems. In 2000, the Company\'s net
revenues were $7,813.2 million and net earnings were $1,452.1 million.
Further information on ST can be found at www.st.com.

About PowerVR Technologies

PowerVR Technologies - a division of Imagination Technologies - develops and
markets the unique PowerVR graphics/video technology. Existing partners
licensing the technology include NEC and STMicroelectronics. PowerVR
Technologies design wins have included Sega\'s latest video games console,
Dreamcast, the Naomi arcade system, which is used in the majority of new
arcade machines worldwide, and numerous PC add-in and OEM customers. More
information is available on the PowerVR Technologies web site at

About Imagination Technologies

Imagination Technologies Group plc is an international company that
develops, licenses and supplies market-leading 2D/3D graphics, digital
video, audio and speech technologies and products for consumer entertainment
and PC Markets. The company has deployed and planned technologies for games
consoles, PCs, arcade entertainment machines, digital set-top boxes, in car
information/entertainment systems, and mobile devices. Since it was founded
in 1985, the company has introduced, via licensing arrangements or directly,
a succession of innovative technologies, silicon chips and add-in boards,
which have played a major role in the development of multimedia and
computer-based entertainment systems. Imagination Technologies Group plc has
its corporate headquarters in the United Kingdom and is publicly traded on
the London Stock Exchange (FTSE:IMG). More information is available on the
Imagination Technologies web site at www.imgtec.com .

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