Santa Clara, Calif., January 5, 2000 -- PortalPlayer Inc., a supplier of platform solutions for the encoding and playback of digital audio files, today announced that its products will support DataPlay digital media, a universal solution about the size of a quarter that is designed to permanently store a vast amount of digital content. PortalPlayer will provide a direct interface and software support for DataPlay devices in its complete platform solution for implementation of battery- and line-powered audio systems that can encode and playback digitally compressed files without a PC.

"With a unique combination of high capacity, small form factor, affordability and flexibility, DataPlay provides an exceptionally powerful storage solution for digital media files," said Michael Maia, vice president of marketing at PortalPlayer. "DataPlay offers one the industry's lowest cost per megabyte writable media technologies in a small form factor. We are very pleased to be one of the first companies to provide a direct interface to DataPlay digital media and engines."

PortalPlayer platforms include a single-chip integrated circuit for the encoding and playback of music; a complete firmware suite including the operating system and implementation licenses for key systems software; a companion PC-based media manager application, and access to a network of technology partnerships and business alliances.

DataPlay digital media, with 500 MB of storage capacity, supports all major applications including music, imaging, games, computing, e-books and wireless data. DataPlay digital media is compliant with Digital Rights Management (DRM) techniques as well as SDMI initiatives to protect the intellectual property rights of artists and content providers. It also supports the latest and most popular encoding formats such as AAC, WMA, MP3, MPEG4 and many others to ensure that current types of content are recordable and playable at equal to or better quality than existing formats.

"By working together, DataPlay and PortalPlayer will both be able to expand our reach into the marketplace quickly," said Steve Volk, CEO of DataPlay. "With its innovative systems platform approach, Portal Player is an ideal development partner for DataPlay as we look to form alliances with OEM partners and revolutionize the way consumers store all their digital media content."

PortalPlayer's integrated device support minimizes the need for chip-level interfaces or glue logic to implement digital audio recorder/player systems that use DataPlay digital media. Original equipment manufacturers (OEMs) and original device manufacturers (ODMs) using PortalPlayer platforms will be able to quickly build devices that integrate the DataPlay engine.

PortalPlayer is demonstrating the use of DataPlay digital media on its current hardware platform in the DataPlay booth at CES, booth #1357, January 6 - 9.

About DataPlay.

DataPlay, Inc. was incorporated in November of 1998 to develop a Web-enabled digital content recording and distribution media for portable Internet appliances and hand-held consumer electronic devices. Headquartered in Boulder, Colorado, the company employs more 160 people in the United States, Singapore and Japan. Visit DataPlay on the Internet at http://www.dataplay.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 May 1999, PortalPlayer is headquartered in Santa Clara, California, with operations in Seattle, Washington, Charlotte, North Carolina, and Hyderabad, India. More information on PortalPlayer, Inc., and its products is available on the company's website, http://www.portalplayer.com

# # #

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