Santa Clara, Calif., June 5, 2000 -- PortalPlayer Inc., a supplier of end-to-end solutions for delivering open and secure digital media via the Internet, today announced a broad ranging manufacturing and technology development agreement with Oki Semiconductor. Oki, a leading provider of custom integrated circuits, will handle all aspects of production for PortalPlayer-designed ICs, including the PP5001 single-chip solution for portable digital audio playback and recording devices, which was introduced today. The two companies also will collaborate in development of intellectual property to further enhance PortalPlayer's technology position.

The manufacturing partnership assures availability of PortalPlayer IC products in the quantities required by consumer electronics companies, the principal market for the company's digital media platforms. As PortalPlayer broadens its product line its collaboration with Oki will provide access to a wide range of high-value Intellectual Property (IP) and proven core technologies for integration. "With one of the world's leading IC firms as our manufacturing partner, we are well-positioned to meet production requirements of leading consumer electronics OEMs," said John Mallard, president and CEO of PortalPlayer, Inc. "Oki is known for its innovation, quality and service, which are values we share here at PortalPlayer. It's our plan to bring to market innovative platform technologies well ahead of our competition, and Oki's commitment to PortalPlayer and our customers is a major step toward delivering on this goal." "The management team at PortalPlayer understands that OEM companies look for a full solution, and that innovative chip design is just the first step in creating market leadership," said Shusaku Sumida, president and COO of the Silicon Solutions Division, Oki Semiconductor. "We are committed to supporting the company's ramp-up to volume manufacturing of its first products, and to helping PortalPlayer leverage the strengths within Oki to address the needs for its next generation products."

About the PP5001

The PP5001 is a high-integration, system-on-a-chip IC, designed for playback and recording of digital audio content in compact, battery-powered systems supporting a variety of decoding, encoding and encryption technologies, and multiple types of storage media and displays. It is the hardware portion of a fully integrated platform solution that includes on-chip firmware and a complete Windows Media Management application.

Oki Semiconductor's expertise in large-scale integration (LSI), low-power design and quality manufacturing of high-volume products provides significant benefits to PortalPlayer. In particular, support for the ARM™ processor core architectures used in the PP5001, extensive experience in peripheral integration and long-term relationships with leading OEMs strengthens the ability of PortalPlayer to secure and maintain market leadership.

About Oki Semiconductor

Founded in 1977, Oki Semiconductor manufactures a broad line of advanced integrated circuits for use in computers, EDP, automotive, telecommunications and consumer products. A leader in CMOS memories, gate arrays and ASICs, Oki's product lines also include speech synthesis, microcontrollers and advanced communications devices for wired, wireless and fiber optic applications. As a certified vendor of Universal Serial Bus (USB), the company's ASIC technology offers PCs a plug-and-play connection to a fast-growing list of new peripherals. The company is also a leader in packaging technology, providing sophisticated options to its customers. With U.S headquarters in Sunnyvale, Calif., Oki Semiconductor has manufacturing facilities in Japan and Thailand. All manufacturing facilities are ISO 9001-certified. Oki Semiconductor is a division of OKI America Inc., a subsidiary of Oki Electric Industry Co, Ltd. For more information, the company's home page on the World Wide Web is located at http://www.okisemi.com.

PortalPlayer, Inc.

PortalPlayer, Inc. supplies consumer electronics manufacturers with complete platform solutions for open and secure delivery and management of digital media via the Internet. The company develops and markets advanced systems for digital audio recording and playback, using MP3 and other popular digital compression technologies, tightly integrated with e-commerce and digital rights management.

Founded in June 1999, PortalPlayer is headquartered in Santa Clara, California, with major operations in Seattle, Washington, and Hyderabad, India. The company has received two rounds of venture funding from Chase Capital, Techfund Capital, FlatIron Partners, MP3.com, and individual investors. More information on PortalPlayer, Inc., and its products is available on the company's Web site, www.portalplayer.com.

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