Media Vision Seeks to Divest Retail Multimedia Business
Also Announces Related Reduction in Force

FREMONT, CALIFORNIA -- AUGUST 1, 1995 -- (MVSN: OTC Bulletin Board) Media
Vision Technology Inc. announced today that it has retained investment
bankers Hambrecht and Quist to assist the Company in evaluating strategic
alternatives for the portion of the Company's business relating to retail
sales of PC audio circuit boards and upgrade kits. Hambrecht and Quist
will report to a special committee of outside directors that has been
appointed by the Board of Directors to review strategic opportunities
which may be presented to the Company. The Company is currently in
preliminary discussions with several third parties regarding transactions
involving its retail operation, although there can be no assurances that
such a transaction will be completed.

The Company has been focusing increasingly on development of its audio
semiconductor technology and has determined that the divestiture of its
retail business would be the most advantageous option for its
shareholders. "Although Media Vision is well known for technically
advanced and market leading retail products, our lack of access to low
cost manufacturing has hampered our ability to leverage our excellent
brand name to provide sufficient margins", said G. Robert Brownell, Chief
Executive Officer. "We believe that a third party with access to lower
cost manufacturing could be very successful in the retail market with the
Media Vision distribution channel and brand name. We intend to follow a
business model based on the development and sale of audio semiconductors
and on royalties from licensing transactions."

The Company has engaged in preliminary negotiations with several parties
over the past several months with respect to licensing of certain of its
audio technology. In that regard, the Company recently entered into a
licensing agreement with a third party company. The agreement provides for
the licensing of certain of the Company's audio semiconductor technology
to this company in exchange for royalties based on its sales of products
incorporating this technology. These royalties will not commence until
1996, are not guaranteed, and depend on the licensee's sales of their
solutions which integrate the Company's audio technology.

The Company also announced today that it had given approximately 100
employees in its retail business operations notice under the W.A.R.N. Act
advising them that their positions would be eliminated as the Company
seeks to transition its business to focus on its semiconductor
operations.
 
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