Faroudja Video Processing Chip Set Selected by Mitsubishi

SUNNYVALE, CA -- July 12, 1999 -- Faroudja, Inc. (Nasdaq: FDJA) today announced the selection of Faroudja's FLI 9000 video processing chip set by Mitsubishi Electric Corporation (Japan) and that delivery of the chip sets has commenced.

The FLI 9000 chip set includes a complete suite of the award-winning Faroudja Picture Plus(TM) video processing technologies. Picture Plus processing transforms conventional video signals into film-like images. Color and detail are improved dramatically without introducing annoying artifacts. These Faroudja technologies include Faroudja's patented adaptive PAL/NTSC color decoding and cross color suppression; deinterlacing technologies, including motion detection and compensation, film mode detection and bad edit correction; and video enhancement detail processing. The engineering sample chip sets will be used to support a variety of Mitsubishi CRT and LCD-based projectors.

The shipment of these chip sets is an additional indicator of Faroudja's forward looking strategy of supplying video processing technology for a wide variety of video display applications.

We are pleased to be working with a company that shares Faroudja's passion for high quality video," said Tom Harvey, Faroudja Vice President, Marketing and Sales. "The Mitsubishi evaluation process is extensive and we are honored that our chip set was chosen."

Faroudja, Inc. (Nasdaq: FDJA) is a world leader in high-performance video processing technologies for markets requiring superior image quality solutions. The Company 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. Faroudja has received numerous awards, including an Emmy award for Engineering Development and a Lifetime Achievement Emmy presented in June, 1998 to its founder, Yves Faroudja.

Except for historical information contained herein, this press release contains forward-looking statements that are subject to risks and uncertainties, including the timely development and acceptance of new products, product availability from suppliers, the impact of competitive products and pricing, changing TV standards and other risks set forth under the caption "Factors Affecting Future Operating Results" in Faroudja's Annual Report on Form 10-K for the year ended December 31, 1998, its quarterly report on Form 10-Q for the quarter ended March 31, 1999 and other filings with the SEC.

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 CONTACT:

Company:
Thomas Harvey
VP Sales & Marketing

Robert Sheffield
VP Finance, CFO

Faroudja, Inc.
(408) 735-1492
www.faroudja.com

or

Financial/General Interest Media
Michael Bulger
Robinson Lerer & Montgomery
(212) 484-7413

or

Audio/Video Media:
Stan Pinkwas
J.B. Stanton Communications
(718) 788-7777 Voice
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