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STMicroelectronics Delivers Samples of Euterpe Digital Voice Processor Chip

3 June 1999

STMicroelectronics Delivers Samples of Euterpe Digital Voice Processor Chip Incorporating NCTI Technology

    STAMFORD, Conn--June 2, 1999--

Integrated system-on-chip solution for automotive systems and
household appliances can implement speech recognition
text-to-speech, speaker verification, noise cancellation and echo
cancellation

    NCT Group, Inc. (OTCBB: NCTI) today announced that its noise and echo cancellation technology is available on the Euterpe(tm) chip from STMicroelectronics. STMicroelectronics has delivered to selected OEMs the first samples of this new DSP-based system-on-chip solution that adds a comprehensive array of voice processing capabilities to automotive systems and household appliances.
    The new chip includes a powerful embedded digital signal processor core optimized for audio applications, analog-to-digital and digital-to-analog converters, code and data memory, an external memory manager and an I2C interface for communication to the host processor. Using proven DSP code developed by third parties Euterpe offers the most compact automotive-grade implementation for speech recognition, text-to-speech, speaker verification, noise cancellation and echo cancellation.
    STMicroelectronics has implemented on the Euterpe Digital Voice Processor DSP speech recognition, text-to-speech and speaker verification software developed by Lernout & Hauspie and noise and echo cancellation software developed by NCTI.
    NCTI technology allows the continuous and adaptive removal of background noise from a speech signal, enhancing the audio quality and making speech recognition more reliable. Optimized for voice signals, this engine provides up to 20dB improvement in signal-to-noise ratio, a simple tone reduction better than 70dB and white noise reduction better than 12dB. An additional echo canceling function removes known audio signals such as far end echo from telephone conversations and text-to-speech output from the speech recognition input.
    Speech processing technology is the key to adding safety and convenience features to in-car information centers, allowing drivers to use navigation systems and cellular phones without taking their eyes off the road or their hands off the steering wheel. Background noise and echo cancellation significantly improve the quality of communication in noisy environments such as vehicles, while speech-enabled automotive systems also offer new options such as listening to incoming e-mail while driving. In home automation, too, voice activation offers a more user-friendly interface than existing remote controls.
    Several different implementations of the Euterpe Digital Voice Processor are planned. Initially ST is offering selected OEMs a development version using RAM memory for program code. This chip is used with a special-purpose development package consisting of an evaluation board and software development tools.
    Volume production versions with program code in ROM memory are scheduled to ship in September 1999. The first of these ROM-code chips will each implement one of the main voice processing functions: TDA7550 for Speech Recognition, TDA7551 for Speaker Verification, TDA7552 for Text to Speech and TDA7553 for Noise and Echo Cancellation. In future, ST also plans to introduce new versions with more program memory space so that multiple functions can be embedded in a single chip.
    All of these ICs contain a 24-bit, 50MIPs fixed-point DSP core, 16Kwords of on-chip program ROM, 16Kwords of on chip data RAM, 16-bit sigma-delta A/D and D/A converters, a management circuit for external memory and a serial control interface. Housed in 80-pin TQFP packages, they are all rated at the automotive temperature range of -40 to +85oC.
    STMicroelectronics is a global independent semiconductor company with strong European roots listed on the New York Stock Exchange and on the Bourse de Paris. It designs, develops, manufactures and markets a broad range of semiconductor integrated circuits (ICs) and discrete devices used in a wide variety of microelectronics applications, including telecommunications systems, computer systems, consumer products and industrial automation and control systems. In 1997, the company was recognized as one of the world's best companies by Industry Week and Upside Magazine. Further information on STMicroelectronics can be found at www.st.com.
    NCTI is a leading technology developer with an extensive portfolio of proprietary algorithms and a wide variety of product offerings for consumer, commercial and industrial applications. The Company specializes in the utilization of sound and signal waves to reduce noise, improve signal-to-noise ratio and enhance sound quality. For more information, refer to the company's World Wide Web site at http://www.nct-active.com.

Cautionary Statement Regarding Forward-Looking Statements Certain information contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Act of 1995 (the "Act"), which became law in December 1995. In order to obtain the benefits of the "safe harbor" provisions of the Act for any such forward-looking statements, the Company wishes to caution investors and prospective investors about significant factors, which among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and cause them to differ materially from those expressed in any such forward-looking statements. Investors and prospective investors should read this press release in conjunction with the Company's most recent Form 10-K and Forms 10-Q.