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Faroudja Awarded Third Emmy by National Academy of Television Arts and Sciences

DCDiTM deinterlacing, IntelliCombTM video decoding and TrueLifeTM enhancement technologies produce Emmy-winning high-definition picture

SUNNYVALE, CA, Oct. 16, 2001-Faroudja, a division of Sage, Inc. (Nasdaq:SAGI) and widely considered a leader in video-enhancing technologies for professional and home environments, today announced it has been awarded its third Emmy by the National Academy of Television Arts and Sciences. The award for "Pioneering Development of an HDTV Upconverter" recognizes a suite of technologies that is instrumental in converting ordinary standard-definition content into sparkling high-definition video. This award-winning suite includes DCDi deinterlacing, IntelliComb video decoding and TrueLife enhancement-technologies that are the culmination of thirty years of Faroudja video experience.

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"We are extremely pleased to receive this prestigious recognition by the Academy," commented Chandra Reddy, CEO of Sage, Inc. "The innovative technology we developed to create the HDTV up-conversion process in our Digital Format Translator (DFT) has now been implemented in our other Faroudja processors-such as the DVP5000, DVP3000 and new Native Rate Series-and into our custom IC solutions with the Sage FLI2200 video deinterlacer and FLI2220 video enhancer, so we can deliver unparalleled image quality to the TV station, home theater, DVD player and even within the TV itself."

Faroudja's commitment to creating an excellent HDTV image from standard-definition sources resulted in the first upconverter for the television broadcast station to effectively parallel the very benefits outlined for HDTV by the Advanced Television Systems Committee: to provide cleaner, sharper images that would excite the consumer to want to invest in new video products for a more fulfilling home theater experience.

Upconversion of NTSC or other standard-definition material to HDTV requires the highest quality video decoding, deinterlacing, scaling and enhancement. The overall result of applying the following technologies is a richer, more pleasing, high-definition-like picture:

o Stressing technology for moving images instead of just test patterns, Faroudja's patented video decoding algorithms use intelligent adaptive combing (IntelliComb) to separate luma and chroma signals, and time-base correction to stabilize unstable sources like low-cost VCRs.

o Patented deinterlacing is motion-adaptive on a per-pixel basis and includes film mode for proper handling of 3:2 and 2:2 pulldown material, bad edit detection/correction and Directional Correlational Deinterlacing (DCDi).

o DCDi eliminates jagged edges normally seen on angled lines in motion video, creating smooth and natural looking images.

o TrueLife enhancement uses patented non-linear algorithms to enhance the small details and colors in images and improve depth perception by sharpening large edges without introducing visual artifacts or distortion.

This is the third Emmy awarded to the company. Earlier awards include a 1991 Emmy for engineering development and a 1998 Charles F. Jenkins Lifetime Achievement Emmy to Faroudja's founder Yves Faroudja.

About the Company: Faroudja, a division of Sage Inc, is a world leader in high-performance video processing technologies for markets requiring superior image quality solutions. Faroudja provides innovative products for the HDTV broadcast, home theater, digital television and PC/TV convergence markets. Faroudja's technologies are protected by more than 60 patents.

Headquartered in Milpitas, Sage Inc. (Nasdaq:SAGI) is a leading provider of digital display processors, enabling superior picture quality for a variety of consumer technology and PC-display products ranging from web appliances to TVs and flat panel monitors. Leveraging Emmy-award winning Faroudja technology from its acquisition of Faroudja Inc., Sage is developing products that bring the home theater experience to the mass consumer and PC-display market through digitally enhanced television, projection displays, DVD players and internet appliances. The Company's systems-on-a-chip technology provides highly integrated mixed signal and system functionality with higher picture quality than lower-quality processors at a similar component cost. Sage's display processors, which include Faroudja video processing technology, are used by world-renowned consumer electronics manufacturers such as Compaq, Fujitsu, Hyundai, InFocus, LG, NEC, Philips, Samsung, Sanyo, Sony and Toshiba. More information about Sage can be found on its web site at www.sageinc.com; the Company may be contacted directly at 408/383-5300.