TAIPEI, TAIWAN May, 2005 - Animation Technologies Inc. (the " Company "), a provider of video capture and TV card technologies, has entered into agreements with Intel Capital Corporation (" Intel ") to invest in the Company. The closing of Intel's investment is subject to the Company completing, and the Taiwan SFC approving, a capital increase authorizing the issuance of new shares to Intel, as well as satisfaction of customary conditions to closing. If such actions are taken and conditions fulfilled, closing is expected in the third quarter.

The Company believes that digital broadcasting is expected to accelerate over next 5 years. Intel's proposed investment in the Company shall assist in making the PC platforms the best user experience to enjoy digital entertainment.

Animation Technologies has developed video multimedia solutions for 15 years, using their accumulated experience and expertise to produce award-winning multimedia solutions in a wide variety of forms. Products include analog and digital TV tuners for both desktop and laptop computers available in a multitude of form factors, video capture and output solutions for PDAs, camera solutions for both PCs and PDAs, and embedded LCD applications including an internet enabled flat panel TV.

One of Animation Technologies Inc.'s major product series is the PCI Express TV/video capture cards. Its latest product debuted at the Intel Developer Forum Spring 2005 and CeBIT 2005 which garnered interest from international customers and media. "The dramatic increase in bandwidth that the PCI Express interface offers gives us the freedom to create multi-stream video solutions that can show up to two, three, even four live video streams simultaneously," said Sherlock Shih, CEO of Animation Technologies Inc.

Animation Technologies Inc. develops video capture cards, namely the desktop PCIe cards and the ExpressCard solutions for laptops that truly take advantage of the PCI Express interface. The Company also produces MEC card that uses both a PCIe and an SDVO slot for a card that acts both as a TV tuner and as a video out, giving PC builders a uniquely streamlined multimedia solution.

About Animation Technologies Inc.
Since it was founded in 1990, Animation Technologies Inc. is an early provider of video capture technology in the industry. The Company?s first remote TV card was dated back in 1994. Animation Technologies is committed to developing and marketing cutting-edge multimedia and video products for the corporate, consumer and OEM markets. With its experienced R&D team and its hands-on top management, Animation Technologies is uniquely positioned to develop and promote innovative video-capture products. The Company?s philosophy is encapsulated in ?The Three R?s?: providing the Right Product at the Right Time with the Right Pricing.
About Intel Capital
Intel Capital, Intel's strategic investment program focuses on making equity investments and acquisitions to grow the Internet economy in support of Intel's strategic interests. Intel Capital invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. For more information, visit
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