Statement From Tom Harvey, Vice President Of Sales And Marketing, Faroudja, Inc.

As you know, Faroudja, Inc. and Sage, Inc. have announced the signing of an agreement to merge the two firms to form a single, highly dynamic organization, with Faroudja becoming a division of Sage.This merger is about growth, not cost cutting. It's about combining two good companies to make a bigger, stronger company, and building the foundation for an even more successful company capable of achieving growth in important new markets. Throughout this process, Faroudja customers will benefit from the enhanced capabilities of a company with greater engineering bandwidth and financial strength.As you are aware, high-performance chips are at the heart of all Faroudja processing. The new company will provide an exciting platform for advancing our strategy of improving our current products as well as providing leading-edge chip solutions for the new generation of displays for PCs, TVs, and digital and Internet appliances. The company will be able to bring new, high-value products to market faster, at ""internet time"" speeds.By combining Sage's proven track record of execution and growth with Faroudja's acclaimed video processing technologies and patent portfolio, the new company will be positioned to move quickly and effectively in a variety of existing and new markets, including flat panel displays, video projectors, DVD players, TVs and home theatre systems.Faroudja is committed to retaining and enhancing the value of its position as a world leader in high-performance video processing technologies. It will continue to pioneer new technologies and to improve video performance in the home theatre, presentation and broadcast markets. Our combined financial, engineering and sales resources will help us achieve larger market potential more quickly and effectively.