TIBURON, CA—February 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 fourth calendar quarter of 2003. Detailed fourth-quarter results, as well as annual results for 2003, are available in the Q4'03 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 62.18 million PC graphics devices shipped from eight suppliers in Q4'03, an 11.2% increase from the previous quarter. The mobile graphics segment achieved 26% growth quarter-to-quarter, outpacing an 8.1% growth rate in the desktop segment. Approximately 12.20 million mobile graphics processors shipped from six suppliers in Q4'03, an industry record. In addition, shipments of integrated graphics chipsets for notebook platforms surpassed those of discrete (stand-alone) mobile graphics processors for the first time, to claim a greater than 50% share of the mobile graphics market.

 "Robust growth occurred in both the discrete desktop segment and in the mobile graphics market as a whole during the fourth quarter," said Lisa Epstein, a senior analyst at Jon Peddie Research. "Strong growth in the fourth quarter is typical for the PC graphics industry; however, mobile graphics shipments, and shipments of mobile IGCs in particular, exceeded expectations. The wide adoption by manufacturers of Intel's Centrino technology has created a general upswing in demand for mobile platforms, spurring sales of notebook graphics," Epstein concluded.

The mobile IGC segment led growth in Q4'03, with shipments increasing 35.9% as compared to Q3'03. The discrete mobile segment grew by a more moderate 17.2%. Discrete desktop graphics shipments increased by 19.3%. Shipment growth in the discrete desktop segment was driven primarily by ATI's strong showing during the quarter with its current generation of DirectX 8 and DirectX 9 stand-alone products. Shipments of desktop IGC parts were essentially flat in Q4'03.

As compared to Q3'03, Intel saw a 3.9% increase in graphics shipments in Q4'03 and was the largest supplier of PC graphics devices worldwide but with a reduced share of the total graphics market. ATI was the second largest supplier in Q4'03, with a 30.4% increase in graphics shipments and an increased share of the total graphics market. In third position, Nvidia saw a 9.5% increase in graphics shipments in Q4'03, with a less than 1% decline in its share of the total graphics market. The following table lists the ranking and relative market share, based on unit shipments in Q4'03, of the eight major graphics suppliers to the PC industry.

Rank	Graphics Supplier	Q4'03 Market Share
1	Intel	31.7%
2	ATI Technologies	25.2%
3	Nvidia	24.7%
4	VIA Technologies	9.02%
5	Silicon Integrated Systems (SiS)	8.3%
6	XGI	.5%
7	Matrox Graphics	.48%
8	3Dlabs (Creative Technology)	.03%

Pricing and Availability

Jon Peddie's Market Watch for Q4'03 will be available in February 2004 in both electronic and hard copy editions. A condensed version of Market Watch, entitled Quick Look, is available now. The annual subscription price for Jon Peddie's Market Watch is $2,750 and includes four quarterly issues. The annual subscription price for Quick Look is $2,000. Full subscribers to JPR services receive Tech Watch, the company's bi-weekly report and a copy of Market Watch as a part of their subscription. For information about purchasing Market Watch, please call 415/435-9368 or visit the Jon Peddie Research site at www.jonpeddie.com.

About Jon Peddie Research

Dr. Jon Peddie has been active in the graphics and multimedia fields for more than 30 years. Jon Peddie Research is a technically oriented multimedia and graphics research and consulting firm. Based in Tiburon, California, JPR provides consulting, research, and other specialized services to technology companies, including graphics development, multimedia for professional applications and consumer electronics, high-end computing, and Internet-access product development. Jon Peddie's Market Watch and Quick Look are quarterly reports focused on the market activity of PC graphics controllers for mobile and desktop computing.