NeoMagic Corporation Provides Investors With An Update On New Product Development And Current Operations

Online, May 29, 2012 (Newswire.com) - San Jose, California - NeoMagic Corporation (NMGC.PK), the pioneer of embedded memory and logic technology, today provided a business update.

The company has successfully demonstrated its" MagicVaultTM, USB 3.0-based UFD USB Flash Drive product to a few potential customers and is actively looking for a partner to take MagicVault into production. Preliminary testing has shown that MagicVaultTM delivers almost two times the performance of any other USB 3.0 UFD controller on the market right now.

NeoMagic continues to ship their MiMagic 3, 110MHz 32 bit RISC processor to their Asia Pacific customer for use in electronic toll smart card-based collection systems in Singapore.

NeoMagic previously announced one client - ViV Systems - for which it is developing the M-Book - a hand held 7 inch touch screen that controls the audio and video settings of the Karaoke machine and is capable of organizing more than 30 thousand songs by title, producer or lyrics. NeoMagic is continuing its efforts to find other customers for its very competitive priced MiMagic6+ SOC/Micro-controller which is a 200MHz RISC processor for embedded applications. The M-Book product is expected to come onto market this summer.

The company's main focus remains to increase revenue from its MiMagic 3 product, grow the number of customers for its "competitively priced" MiMagic 6 product, which is a 200MHz RISC processor for embedded applications similar to those offered by TI and Samsung, and to deliver its USB 3.0 UFD controller to the market place.

In conjunction with the above efforts NeoMagic is exploring various e-commerce opportunities, will be providing more details in the coming weeks.

In the upcoming month, NeoMagic and Proactive Investors will be hosting a meeting for investors in New York City. The Company will provide specific details on the meeting as they emerge. For more information on the date, time and location of this event, please visit NeoMagic's Proactive page at www.proactiveinvestors.com/sponsors/4162/neomagic-4162.html

Separately, the Company announced that, Andrew B. Rosengard, Chuck Bellavia, Scott Sullinger, and Joseph Fitzgerald, each independent directors of the Company, notified the Company of their resignation as directors of NeoMagic Corporation.

About NeoMagic
NeoMagic designs and delivers consumer electronic device solutions with semiconductors and software for video, television, imaging, graphics, and audio. We provide low cost, innovative chip technology for tomorrow's entertainment and communication needs. Our solutions offer low power consumption, small form-factor and high performance processing. As part of our complete system solution, we deliver a suite of middleware and sample applications for imaging, video and audio functionality, and we provide multiple operating system ports with customized drivers for our products. Our product portfolio includes semiconductor solutions known as applications processors. Our applications processors are sold under the "MiMagic" brand name with a focus on enabling high performance processor within a low power consumption environment. The Company has developed the Horizon Digital Picture Frame kit using our MiMagic 6+ application processor.

Our capabilities give our partners and their customers' high quality answers to excite and enhance the consumer's lifestyle. For more information, visit www.neomagic.com.

About Proactive Investors
Proactive Investors facilitate the largest global investor network across 4 continents in 4 languages. With a team of analysts journalists & professional investors Proactive produce independent coverage on 1000's of companies across every sector for private investors, private client brokers, fund managers and international investor communities. For more information, visit www.proactiveinvestors.com.

Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed from time-to-time in the Company's filings with the Securities and Exchange Commission, including our Form10-K's, 10-Q and 8-K's for 2007 through the date of October 31, 2010 hereof have been made available to the Investor at www.sec.gov. Information for the period ending January 30, 2011 to the present is not available through the SEC due to the cessation of the Company's required filings under the 1934 Act. Actual results, including, without limitation, the Company's ability to successfully raise capital may differ significantly from those set forth in the forward-looking statements. Forward-looking statements involve risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). For example, statements about our expectations in connection with financings are subject to a variety of uncertainties and are subject to change as a result of changes in circumstances that could make it difficult for us to consummate such financings on terms acceptable to the Company, or at all. The Company undertakes no obligation to update any forward-looking statements, except as provided for by law.

NeoMagic is a registered trademark of NeoMagic Corporation and MiMagic is trademarked. All other trademarks are the property of their respective owners. NeoMagic disclaims any proprietary interest in the marks and names of others.