PortalPlayer Introduces Preface Personal Media Display Technology Supporting Microsoft Windows SideShow in Notebook Computers

PortalPlayer Inc. (Nasdaq:PLAY), a leading supplier ofsemiconductors, firmware and software for the personal media playermarket, today announced during the Consumer Electronics Show (CES)2006, a new technology platform called Preface(TM) that will givenotebook users instant access to data, music and photos withoutopening the notebook, booting the system and loading the neededapplication.

"This is an exciting time for the company as we begin ourdiversification into new markets beyond our traditional MP3 business,"said Gary Johnson, president and chief executive officer ofPortalPlayer. "Gartner Inc. estimates that the combined globalprofessional and home mobile market will grow from shipping 73.6million units in 2006 to 111.7 million units in 2009(1). We believeour new Preface technology platform will stimulate increased demandfor next-generation notebook designs because it is one of the firstreadily visible new innovations in notebooks in years."

"The line is blurring between consumer electronics and PCs asproducts in both these categories add features from a shared list,"said Jon Erensen, senior research analyst with Gartner. "Semiconductorvendors that focus on the consumer market will play a critical role inintegrating functions and capabilities traditionally associated withCE products into the PC platform. For many of these vendors, the PCmarket is an opportunity for diversification and revenue growth."

About Preface -- Enabling the Second User Interface

The PortalPlayer Preface technology platform enables a second userinterface in new notebook computers that seamlessly integrates with aflexible new feature set in Microsoft Windows Vista called WindowsSideShow. The combination of these technologies enables notebookcomputer manufacturers, working with application developers, tointroduce a second user interface for notebooks and a set ofapplications that link to the programs and data stored on the mainsystem. The new interface is "always on," providing immediate accessto critical content such as e-mail, contacts and other digital media.The main components of the complete secondary subsystem include anultra-low-power processor, a second display and user controls that canbe installed in various locations, including the notebook cover on theother side of the main display.

"The Preface technology platform brings a separate low-powermultimedia processor to the notebook PC architecture that will enableconsumers to enjoy their media content for up to hundreds of hoursinstead of just a few," said Arman Toorians, vice president ofmarketing for PortalPlayer's Personal Media Display Division."Notebooks incorporating the Preface technology and Windows SideShowwill enable users to instantly access data in Microsoft OfficeOutlook, play music, view pictures or access other new features notavailable in existing notebooks. The second display is available evenwhen the laptop is off or in standby mode."

Multiple Configurations for Notebook Computer Manufacturers

Notebook computer manufacturers can choose from a wide variety ofPortalPlayer processors, firmware and software options. Typicalsolutions may include a small color screen and navigation buttons,finger print sensor or touchpad. Included in the platform are severalnative software applets, represented as icons, which enable access tothe applications on the primary system from the second user interface.

Some examples of these applications include:

-- instant access to e-mails, contacts, calendars, to-do lists, memos and system status information such as battery life

-- access to digital multimedia content such as PlaysForSure music playlists and photo slideshows

-- scheduling event alarms and viewing world time

-- adding advanced biometric security features

-- controlling applications such as Microsoft Office PowerPoint and Microsoft Windows Media Player while the system is running with the lid closed

In addition, Microsoft is encouraging software developers tocreate new applets for Windows SideShow called gadgets, which add newinformation lookup functionality. Windows SideShow gadgets give usersthe ability to personalize the second interface by letting them choosewhich functions and capabilities to include. For more information ongadgets see http://microsoftgadgets.com.

Key Components of the Preface Technology Platform

Important elements of the Preface technology platform include theSystem-In-Package (SIP) semiconductor solutions. One of the firstsemiconductors available is the PP5024, which integrates allprocessor, peripheral interfaces, audio and power managementcapabilities. The PP5024 uses dual ARM7 cores in a parallelarchitecture that maximizes peak performance and extends battery lifein "always on" situations. When combined with other unique designelements and PortalPlayer's power-optimized firmware, the solutiondraws very little power and can enable hundreds of hours of musicplayback from a full battery or tens of hours of playback even afterthe battery runs too low for the notebook to operate. In addition,PortalPlayer's Firmware Development Kit -- with multiple musicformats, digital rights management technologies and multimedia codecs-- enables a rich platform for delivering today's leading mediacontent.

How Preface and Windows SideShow Work Together

PortalPlayer and Microsoft worked together to ensure that thePreface technology platform integrates seamlessly with Windows Vista.The technology includes specific Application Programming Interfaces(APIs) to enable native functions and the easy development ofcustomized Windows SideShow gadgets. Depending on the nativeapplications and gadgets installed, the second interface willautomatically synchronize with Windows Vista and cache the datarequested. This synchronization will occur through a Microsoft modulecalled Windows SideShow firmware, which runs on top of PortalPlayer'sfirmware. This will provide a complete API layer for seamlessintegration with Windows SideShow firmware and the Microsoft .Netdevelopment framework.

"We've heard from our customers that having instant access totheir data while on the go is very important," said Dave Mendlen,director of Windows Consumer Marketing at Microsoft Corp. "ThroughWindows SideShow, our development efforts with PortalPlayer willenhance the usability of notebook computers and provide our customerswith the access they desire whether at home or away."

Windows Vista, scheduled to be available for the 2006 holidayseason, will bring clarity to the world of personal computing, soconsumers can more safely and easily enjoy everything on their PC athome or on-the-go.

The Preface technology platform is available now and is expectedto appear in notebook computers in the second half of 2006.PortalPlayer and Microsoft will be demonstrating Preface and WindowsSideShow implemented on Quanta and ASUS notebook computers during CESthis week. The Preface reference design, including the PP5024System-In-Package, optimized Firmware Development Kit and PC SoftwareDevelopment Kit, is available now.

Reference boards are priced at $2,250. Pricing for the PP5024 in10,000 unit per month quantities is $12.00 per unit. For moreinformation on the Preface technology platform, please visit thePortalPlayer Web site at www.portalplayer.com/preface.

Editor's Note:

Implementations of PortalPlayer's Preface technology and WindowsSideShow are on display in multiple partner booths at CES 2006. Inaddition, PortalPlayer is hosting a series of Preface and WindowsSideShow demonstrations at the Mirage Hotel in Las Vegas. To make anappointment, please contact Tim Yankey at 650-201-8810 ortyankey@arpartners.com.

Investor's Note:

A presentation regarding the Preface technology and relatedmarkets will be posted on the PortalPlayer Web site athttp://investor.portalplayer.com/MediaList.cfm at noon Eastern time (9a.m. Pacific Time) on Thursday, Jan. 5, 2006.

(1) Gartner Inc., Market Trends: PC Forecast Analysis, Worldwide,September 2005 Update -- George Shiffler III, Mikako Kitagawa, LuisAnavitarte, Ranjit Atwal, Annette Jump, Lillian Tay, Kanae Maita -- 16November, 2005

About PortalPlayer

PortalPlayer develops semiconductor, firmware and softwareplatforms for portable multimedia products such as personal mediaplayers and secondary display enabled notebook computers. PortalPlayerproducts empower consumers to quickly and easily manage, enjoy andhave access to multimedia content and other forms of information.PortalPlayer is headquartered in San Jose, Calif., with offices inKirkland, Wash., Taipei, Taiwan and Hyderabad, India. For moreinformation, visit www.portalplayer.com.

PortalPlayer, the PortalPlayer logo and Preface are trademarks ofPortalPlayer, Inc. All other product and company names herein may betrademarks of their registered owners.

Forward-Looking Statements:

Except for the historical information contained herein, thematters set forth in this press release, including, but not limitedto, statements regarding the availability of Windows Vista and WindowsSideShow, the availability of notebook computers with Prefacetechnology platform functionality, the timing of the introduction ofnotebook computers containing the Preface technology platform,stimulating increased demand for next generation notebook designs, thecreation of new SideShow applets, and the anticipated performance ofimplementations of the Preface technology platform are forward-lookingstatements within the meaning of the Private Securities LitigationReform Act of 1995. Words such as "expect," "believes," "anticipates,""plans," "expects," "will," "designed to," "forward" and similarexpressions are intended to identify forward-looking statements. Thesestatements are not guarantees of future performance. Actual resultscould differ materially from those discussed in these forward-lookingstatements as a result of risks and uncertainties, including, amongothers, the market for notebook computers with Preface technologyplatform capabilities, manufacturing and supply risks, the timing andintroduction of Windows Vista and Windows SideShow products, theacceptance of PortalPlayer's Preface technology platform by notebookcomputer manufacturers, and other risks and uncertainties detailed inPortalPlayer's quarterly report on Form 10-Q for the quarter endedSeptember 30, 2005 and from time to time in PortalPlayer's SECfilings. These forward-looking statements speak only as of the datehereof. PortalPlayer does not undertake any obligation to updateforward-looking statements.