NEW EDIG

[cksla]

A new agreement with PortalPlayer also was announced. PortalPlayer supplies consumer electronics manufacturers with complete chip solutions for open and secure delivery and management of digital media. PortalPlayer develops and markets advanced system on chip solutions for digital audio recording and playback using MP3 and other popular digital compression technologies tightly integrated with electronic commerce and digital rights management technologies.

Falk said, "As part of the agreement, PortalPlayer will refer pre-qualified customers to us for engineering services and product development using the PortalPlayer IP. This partnership opens the door for revenue producing opportunities, both from non-recurring engineering (NRE) fees and royalties as well as revenue sharing from PortalPlayer. It also provides us with another opportunity to incorporate new technologies into useful applications and attractive products for OEM customers, which in turn should generate additional OEM interest."