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SANTA CLARA, CA -FEBRUARY 6, 2003 - NVIDIA Corporation (Nasdaq: NVDA), the worldwide leader in visual processing solutions, and Microsoft® Corporation announced today that the companies have settled all issues related to pricing of the Microsoft Xbox GPU (graphics) and MCP (audio and networking) chipset and have ended the arbitration between them. In addition to resolving this pricing dispute, the two companies have agreed to collaborate on future cost reductions for the Xbox. More details will be provided during NVIDIA's quarterly conference call to be held February 13, 2003.

"This is a win for both companies, and we couldn't be more delighted with the results," said Jen-Hsun Huang, president and CEO at NVIDIA. "NVIDIA and Microsoft can now take our partnership to the next level and focus our substantial resources to maximize the full potential of Xbox game console."

"With the arbitration resolved, we look forward to continuing the partnership between Microsoft and NVIDIA and turning our focus to building on the great success of the Xbox platform," stated Robbie Bach, senior vice president of Microsoft and Chief Xbox Officer.