Imagination Technologies Group plc Licence Agreement with Intel Corporation

24 July 2002 - Imagination Technologies Group plc ("Imagination Technologies"), the leading provider of multimedia and communication intellectual property ("IP"), today announces that Intel Corporation ("Intel"), the world's largest chip maker, has licensed Imagination Technologies' PowerVR MBX graphics / video core for incorporation into Intel Integrated Circuits ("ICs").

Under the terms of the agreement, Imagination Technologies receives licence and development income and will receive royalty revenues when Intel ship products incorporating the PowerVR MBX Core.

The scalability and unique architecture of PowerVR make it an ideal technology to effectively address diverse applications. The PowerVR MBX core is very compact and efficient and its redundancy elimination results in very low power consumption and minimises external memory bandwidth. As a result it is ideally suited to cost and power sensitive consumer, mobile and handheld devices. It can operate via a single memory interface for both CPU and graphics, which is critical in SoC systems, while delivering high performance and image quality and an advanced feature set.

Hossein Yassaie, CEO of Imagination Technologies, said: "Intel is the world's largest manufacturer of computer processors across many markets and a leader in the semiconductor industry as a whole. We are delighted that Intel has chosen PowerVR MBX, our embedded graphics and video core, and believe that this is an important design win for our state-of-the-art technology in this area."

About Imagination Technologies

Imagination Technologies Group plc is an international IP licensing company that develops, licenses and supplies market-leading 2D/3D graphics, digital video, digital signal processing, audio and speech technologies for the consumer entertainment and PC markets. It supplies both licensable IP (Intellectual Property) and advanced development tools to leading semiconductor and consumer electronics companies worldwide. Imagination Technologies Group plc has its corporate headquarters in the United Kingdom and is publicly traded on the London Stock Exchange (FTSE:IMG). See: www.imgtec.com .