press release

Santa Clara , Calif., June 8, 2000 -- PortalPlayer, Inc., a supplier of complete solutions for delivering open and secure digital media via the Internet, today announced the addition of Macnica, Inc., as a distribution partner in Japan. Macnica, a leading value-added distributor of electronic components, will distribute the new Tango® Digital Media Player/Recorder platform, which PortalPlayer introduced this week.

"We are very pleased to add a company with Macnica's expertise and customer reach to our growing family of partners," said John Mallard, President and CEO of PortalPlayer. "As both a technology provider and development partner to its own customers, Macnica enhances our own strategy to deliver time-to-market solutions."

"PortalPlayer's Tango platform provides consumer electronics manufacturers with a powerful, base level system that will accelerate integration of Internet-based, digital audio capability in mass-market products," said Haruki Kamiyama, president of Macnica, Inc. "This is an excellent addition to our line card, as our business strategy concentrates on delivering high-value products and services to support new applications of electronics in growth markets."

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®-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 Macnica, Inc.

Macnica, Inc. is one of the leading distributors and representatives in Japan, concentrating on advanced electronics components and equipment. Founded in 1972 the company enjoys close business relationships with all the major electronics manufacturers in Japan. With locations throughout Southeast Asia and in San Jose, Calif., the company has a broad reach. For more information, the company's home page on the World Wide Web is located at http://www.macnica.co.jp/e/index.html

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.

# # #

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