Nevco Completes WinCE-Based STB Using STMicroelectronic's STPC Consumer-II Embedded Microprocessor Chip

This release announces the completion of a project to develop a next-generation set-top box that will deliver digital video, on demand, to television sets in a networked environment, over Ethernet or ADSL. Unlike anything previously developed, the Nevco set-top box will be the first affordable mode of delivering in-room entertainment, and Internet access, to hotels, and soon, to homes, throughout the country.

Milpitas, CA, May 10, 2001----Nevco Technology, Inc. today announced the successful completion of its WinCE-based Set-Top Box project, which will enable users of Nevco's interactive video-on-demand set-top box (code-named "Starbox") to access high-quality, interactive audio/video information through corporate intranet, Internet, or other data networks on a real time basis. Built around the efficient, but advanced, STPC Consumer-II, a PC compatible embedded microprocessor, the Nevco STB will revolutionize the way we communicate.

The Starbox is a natural extension of its groundbreaking, first-generation, interactive video streaming set-top box/server solution. The cost-efficient STB is scheduled to operate on multiple platforms, with a Linux version planned for release in 2Q 2001. "In the hospitality market, the Starbox will be a breakthrough for hotel management and guests alike as it delivers full VCR-like functionality to viewers, while freeing up scarce real estate now devoted to VCR racks and head-end equipment, and automating the movie selection process for hotel staff" said K. Mark Lee, Chief Operating Officer of Nevco Technology. "Ultimately, hotels will see more fee-based revenue per room, and fewer costs associated with the upkeep of its in-room entertainment systems."

Nevco and STMicroelectronics unveiled the Starbox prototype at the Embedded Systems Conference in San Francisco in April, 2001.

About Nevco Technology, Inc. Nevco is a Silicon Valley-based technology company engaged in the development of the new class of broadband connectivity devices. Nevco's mission is to offer true on-demand video in an interactive environment over Ethernet and xDSL connections. Nevco's products include its video streaming set-top boxes, video servers, and proprietary software for the video streaming industry. Nevco received initial funding from FAT Capital, Primax Corporation and WSGR Fund, and raising a second round of financing to fund the rollout of its next generation set top box. Further information about the company can be found at: www.nevcotech.com.

About STMicroelectronics. STMicroelectronics is a global independent semiconductor company that designs, develops, manufactures and markets a broad range of semiconductor integrated circuits ("ICs") and discrete devices used in a wide variety of
microelectronic applications, including telecommunications systems, computer systems, consumer products, automotive products and industrial automation and control systems. ST is the world's leading supplier of MPEG-2 decoder ICs, Digital Set-Top Box ICs, special automotive ICs, MCU-based smart card ICs and EPROM non-volatile memories and is also the second leading supplier of analog and mixed-signal ASSPs and ASICs, disk drive ICs and EEPROM memories, according to the most recent data from independent sources. The company's worldwide headquarters is based in Geneva, Switzerland. Further information about the company can be found at: www.st.com.