press release

Vancouver, Canada, Jan. 25, 2000 -- QDesign Corporation and PortalPlayer, Inc. today announced a partnership to develop and market the most advanced solution for extending storage capacity on digital music player/recorders. PortalPlayer™, a supplier of end-to-end digital media infrastructure solutions, intends to integrate QDesign digital audio compression technologies into its products to enable more efficient storage and delivery of digital music. As a result, consumers will be able to download digital music in less than half the time of standard MP3 files and portable players will be able to store up to two and a half hours of music, versus ninety minutes associated with other technologies.

PortalPlayer-enabled products with QDesign technologies are expected to ship in the second half of this year.

"Storage and bandwidth are still the primary challenges to digital music portability and delivery. Technologies that reduce the impact of these constraints will accelerate the proliferation of players in the marketplace," said Michael Maia, PortalPlayer's Vice President of Marketing. "We are poised to deliver very compelling consumer solutions for digital music access, and QDesign's expertise and technologies in audio compression will enable our customers to offer tangible consumer benefits."

"PortalPlayer offers the digital music solution of tomorrow," said Mandy Chan, Vice President of Business Development for QDesign. "Next-generation digital music systems are about intelligence and integration - making access to content seamless, whether it's stored locally on a player or residing on-line. We believe that PortalPlayer's complete system level solution offers the consumer electronics OEMs unique consumer benefits not available elsewhere. We are excited to be integrating our technology with theirs to make the end solution even more compelling."

About PortalPlayer, Inc.

PortalPlayer, Inc. develops and supplies complete end-to-end media infrastructure solutions for delivering Internet-based digital audio and video to consumers. The solutions include applications that directly connect to the leading music and content Web sites, media management software, firmware, and semiconductors. The company's initial focus is on MP3 player/recorder devices, such as portable MP3 players, home entertainment systems, and cellular phones.

Founded in July 1999 and headquartered in Santa Clara, California, PortalPlayer, Inc., also has operations in Seattle, Washington, and Hyderabad, India. The company received its first round of funding from Chase Capital, Techfund, and FlatIron Partners. Recently, MP3.com has agreed to participate in PortalPlayer's upcoming Series B Preferred Stock financing. This is part of the leading on-line music destination's strategy to integrate MP3.com's content and web site with next generation Internet Protocol-enabled consumer electronics devices. PortalPlayer has already announced support for secure MP3 music delivery and transactions in its partnership with MJuice.com, one of the Web's leading digital music retailers. More information on PortalPlayer, Inc., and its products is available on the company's Web site, www.portalplayer.com.

About QDesign Corporation

QDesign Corporation has been delivering state-of-the art audio solutions to the broadcast and new media industries since 1995. The Company introduced the world's first real-time MPEG-2 stereo compression software in October 1996, making available for the first time, high-quality, high-performance MPEG sound to all broadcast and studio professionals. In January 1998, QDesign launched the QDesign Music Codec as the Internet audio solution for QuickTime, bringing to audio and multimedia professionals "the Best Audio Product of 1999" according to New Media Magazine. With its own MP3 implementation launched in the Summer of 1999 and MVP, the company's digital music software application, QDesign offers the most complete portfolio of audio technologies for advancing the digital music industry. QDesign's codec technologies appear in hardware processors, digital audio production, automation and distribution systems as well as professional and consumer multimedia software. For additional information, please visit the QDesign website at www.qdesign.com.

# # #

All trade names are either registered trademarks or trademarks of their respective holders.