TIBURON, CA—May 3, 2004—Jon Peddie Research (JPR), a leading research and consulting firm for graphics and multimedia, today announced estimated graphics shipments and supplier market share for the first calendar quarter of 2004. Detailed first-quarter results are available in the Q1'04 edition of Jon Peddie's Market Watch, the firm's quarterly graphics survey. Market Watch provides an in-depth look at the PC graphics market and includes unit shipment and segment market share data, trend analysis, shipment forecasts, and profiles of major suppliers.

Jon Peddie Research estimates that approximately 57.5 million PC graphics devices shipped from eight suppliers in Q1'04, a 7.4% decline from the previous quarter and a 12.9% increase over the same period the previous year. The mobile graphics segment saw a 12.7% quarterly decline in shipments but achieved 29.1% growth year-over-year, outpacing a 9.9% annual growth rate in the desktop segment. Approximately 10.5 million mobile graphics processors shipped from six suppliers in Q1'04, an industry record in a first calendar quarter. As in Q4'03, shipments of integrated graphics chipsets for notebook platforms surpassed those of discrete (stand-alone) mobile graphics processors to claim a greater than 50% share of the mobile graphics market.

"Quarterly shipment declines were fairly typical in the first quarter with the exception of desktop GPUs, which were approximately flat as compared to Q4'03," said Lisa Epstein, a senior analyst at Jon Peddie Research. "The discrete desktop segment exhibited surprising resilience during the period with shipments of discrete vs. IGC desktop graphics about numerically even. Intel will not offer its new Grantsdale IGC until the second quarter and a small window has opened for discrete graphics as a result," Epstein concluded.

The discrete desktop segment performed well in Q1'04, with shipments declining just 1.3% compared to Q4'03. In contrast, IGCs declined 10.3% compared sequentially. During a period in which shipments typically decline on a quarterly basis due to seasonality, Nvidia buoyed the segment with a 4.0% increase in shipments of its desktop GPUs. The discrete mobile segment declined by a more substantial 14.9%. Shipments of mobile IGC parts declined by 10.5% in Q1'04 with all suppliers seeing shipments fall by more than 10% on a quarterly basis, with the exception of Intel, which increased its mobile IGC shipments by 9.1%.

Intel saw a moderate 3.8% quarterly decline in graphics shipments in Q1'04, was the largest supplier of PC graphics devices worldwide, and claimed an increased share of the total graphics market. Nvidia was the second largest supplier in Q1'04 with a 2.0% increase in graphics shipments and an increased share of the total graphics market. Nvidia was the only supplier to the graphics market to increase its overall unit shipments in Q1'04 as compared to Q4'03. ATI was the third largest supplier in Q1'04, with an 11.5% decline in graphics shipments and a reduced share of the total graphics market. The following table lists the ranking and relative market share, based on unit shipments in Q4'03 and Q1'04, of the eight major graphics suppliers to the PC industry.