Fremont, California, April 26, 2010 – S3 Graphics today announced a new licensing agreement with Nintendo Co., Ltd., licensing its S3 Texture Compression (S3TC™) technology, a group of texture compression algorithms developed and patented by S3 Graphics, Ltd. The license agreement today extends the parties’ relationship, which began over 10 years ago.

S3TC texture compression uses an advanced compression algorithm that achieves up to six-fold compression of complex textures and images that are used in today’s hardware accelerated gaming titles. This reduces memory bandwidth and expands the amount of texture imagery that can be stored and processed through onboard graphics memory, without compromising visual clarity.

“This agreement furthers our dedication to providing our game developers with leading compression technology to enable them to deliver the best possible gaming experience,” said Mr. Genyo Takeda, General Manager of Nintendo’s Integrated Research and Development Division. “We look forward to continuing our licensing arrangement with S3 Graphics.”

“We are extremely pleased that Nintendo has chosen to use the S3TC compression technology in its world renowned gaming platforms,” said Dr. Ken Weng, General Manager of S3 Graphics. “The license agreement reaffirms S3 Graphics’ S3TC texture compression technology as the industry standard for both PC and game console graphics.”