NeoMagic Corporation Delivers Smart Phone Manufacturing Kit

NeoMagic Corporation
(Nasdaq: NMGC), today announced the availability of their Smart Phone
Manufacturing Kit based upon the Windows Mobile OS. The kit has been designed
for OEMs that wish to significantly reduce development and design time,
enabling them to put feature-and-application-rich smart phones in customers'
hands in approximately 6 months rather than the typical 18 month process.

"We developed the Smart Phone Manufacturing Kit in response to our
customers' demand for a fast time to market cell phone solution," said Douglas
Young, CEO of NeoMagic. "Our MiMagic 6+ Applications Processor, combined with
our complete system integration, will save OEMs significant time in bringing
their smart phones to market, giving them a huge headstart on their
competition."

The Smart Phone Manufacturing Kit comes with a complete software package,
and includes a complete cost and feature competitive form-factor reference
design, schematics with walk-through documents, the board layout with a layout
guidelines document, a full BOM, the Windows Mobile BSP, a software design
guide, a user's guide, complete download utilities, optimized GSM/GPRS image
code, all drivers and codecs.

NeoMagic will be demonstrating a production unit Smart Phone during CES
2008 in their suite at The Las Vegas Hilton. Demonstrations of NeoMagic's
mobile TV, wireless IP camera, and other innovative wireless technologies will
also be on display.

About NeoMagic

NeoMagic Corporation delivers semiconductor chips and software that
provide mobile solutions that enable new multimedia features for handheld
devices. These solutions offer low power consumption, small form-factor and
high performance processing. The Company demonstrated one of the first
solutions used for H.264 video decoding in a mobile digital TV phone, and is
developing and delivering solutions for audio/video processing of the dominant
mobile digital TV standards, including ISDB-T, T-DMB, E-DMB and DVB-H. For
its complete system solution, NeoMagic delivers a suite of middleware and
sample applications for imaging, video and audio functionality, and provides
multiple operating system ports with customized drivers for the MiMagic
product family. NeoMagic has a broad patent portfolio that covers NeoMagic's
proprietary array processing technology, embedded DRAM and other technology.
Information on the Company may be found on the World Wide Web at
http://www.neomagic.com.

NeoMagic and the NeoMagic circle logo are registered trademarks, and
MiMagic and NeoMobileTV are trademarks, of NeoMagic Corporation. All other
trademarks are the property of their respective owners. NeoMagic disclaims
any proprietary interest in the marks and names of others.