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TVIA, INC. ANNOUNCES SALE OF SOFTWARE ASSETS TO MEDIATEK

  SANTA CLARA, CALIFORNIA – June 18, 2003
– Tvia, Inc. (NASDAQ SMALLCAP: TVIA), a leading provider of multimedia display processors for the advanced television and emerging display markets, announced today that it has entered into an agreement to sell its software business and software-related assets to MediaTek, Inc. (
www.mtk.com.tw), headquartered in Taiwan, in exchange for $10 million in cash, subject to milestones and closing conditions. Alliant Partners represented Tvia in this transaction.
 
Tvia’s software business and related software assets include its Home IT, advanced digital video broadcasting (DVB), MPEG4 software player, SDK software, and software drivers. As part of the acquisition of these assets, MediaTek anticipates the hire of approximately ninety software-related personnel, formerly Tvia employees, located primarily in China.
 
Eli Porat, president and chief executive officer of Tvia, remarked, “We are enthusiastic with the benefits this transaction brings to Tvia. We are now able to intensely focus on product development in emerging display applications, such as progressive TVs (PTV) and LCD-TVs. We believe that improving our cash position, and reducing our burn rate, will further increase our ability to more rapidly achieve profitability.”
 
ABOUT TVIA

  Tvia, Inc. enhances a viewer’s experience through the simultaneous presentation of multiple independent media streams on one or more displays. Tvia’s multimedia display processors accept video, graphics, and audio signals from terrestrial broadcast, narrow band telephone lines, cable, satellite, and the Ethernet, to deliver high quality, interactive picture and audio. Tvia’s semiconductor products are targeted for the advanced television and emerging display markets. Tvia products can enable and enhance such services as video-on-demand (VOD), electronic program guides (EPGs), security systems, videoconferencing, and a variety of applications for picture-in-picture or multiple image displays. More information about Tvia is available at www.tvia.com.
  
ABOUT MEDIATEK

  MediaTek Inc. is a leading provider of total solutions for optical storage and digital consumer semiconductors. Founded in 1997 and headquartered in the Hsin-Chu Science Park, Taiwan, MediaTek is now one of the world’s top five IC fabless design companies and the world’s largest chipset supplier of CD-ROM, DVD-ROM, CD-RW, and DVD players. The company’s common stock is traded on the Taiwan Stock Exchange under the code “2454”.
 

Information in this release that involves Tvia’s expectations, beliefs, hopes, plans, intentions or strategies regarding the future are forward-looking statements that involve risks and uncertainties. Forward-looking statements in this press release include statements as to Tvia's focus, cost reduction efforts, new product development, features and benefits of Tvia’s products, and product acceptance and introduction by customers. All forward-looking statements included in this release are based upon information available to Tvia as of the date of this release, and Tvia assumes no obligation to update any such forward-looking statements. These statements are not guarantees of future performance, and actual results could differ materially from out current expectations. Factors that could cause or contribute to such differences or risks associated with our business are discussed in the Company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2002 filed with the Securities and Exchange Commission (“SEC”) on February 7, 2003, and in other reports filed from time to time with the SEC. These risks include, but are not limited to, the slower than anticipated emergence of the interactive television market, our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a timely manner, and the extent and duration of the current economic and business environment.