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 that it has named Kaga Electronics, Co., Ltd., as its first Japanese distribution partner. Kaga Electronics will distribute the new Tango(TM) Digital Media Player/Recorder platform, which PortalPlayer introduced this week, to its customer base throughout Japan.

"Kaga Electronics and its affiliates are excellent partners for PortalPlayer. They have a long history of working closely with the leading consumer electronics companies in Japan, both as a supplier of components and a contract manufacturer," said John Mallard, President and CEO of PortalPlayer. "We are looking forward to collaborations with the family of Kaga companies that will establish the Tango Platform as the standard for innovative new digital audio products."

"PortalPlayer has developed the first complete solution for digital audio playback and recording," said Tsukamoto Isao, President and CEO of Kaga Electronics. "With the Tango platform, our consumer electronics customers will be able to quickly bring to market new systems in multiple product categories, such as personal stereos, hybrid CD/digital-audio player/recorders and portable MP3-type players."

About the Tango Platform

The Tango platform provides manufacturers with a complete system solution to produce portable digital music and voice players/recorders that are compliant with all security and rights management requirements of the Secure Digital Music Initiative (SDMI). The SDMI consortium is an international group including representatives of the recording industry, technology suppliers and manufacturers of consumer electronics products. Including system-on-chip LSI, firmware, and a Windows(R)-compatible Digital Media Manager application software suite, the platform provides system manufacturers with the flexibility to differentiate finished products by choosing from a menu of decoders, encryption standards, storage and display types. No currently available solution supports a broader range of licensed applications and removable storage formats.

About Kaga Electronics

Kaga Electronics is a diversified electronics manufacturing and trading company. Established in 1968 and listed on the First Section of the Tokyo Stock Exchange since September 1997, Kaga is dedicated to providing its customers with technically innovative components and system level products. For more information, the company's home page on the World Wide Web is located at http://www.taxan.co.jp.

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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NOTE: (TM) -- PortalPlayer, the PortalPlayer logo and Tango are trademarks of PortalPlayer, Inc. All other trademarks or registered trademarks are the property of their respective owners.