NVIDIA today reported financial results for the first quarter of fiscal 2006 ended May 1, 2005. For the first quarter of fiscal 2006, revenue increased to a record $ 583.8 million, compared to $ 471.9 million for the first quarter of fiscal 2005, an increase of 24 percent. “We have solidly returned our company to growth,” stated Jen-Hsun Huang, president and CEO of NVIDIA. “We now have four exciting growth businesses – GPU, MCP, wireless media processor, and consumer electronics. In addition, our gross margin initiatives continue to deliver results ahead of schedule. Our efforts over the past two years have put us back in growth mode and have positioned us squarely at the centre of the digital media revolution.”

NVIDIA Corporation today reported financial results for the first quarter of
fiscal 2006 ended May 1, 2005.

For the first quarter of fiscal 2006, revenue increased to a record $ 583.8
million, compared to $ 471.9 million for the first quarter of fiscal 2005, an
increase of 24 percent. Net income for the first quarter of fiscal 2006 was
$ 64.4 million, or $ 0.36 per diluted share, compared to net income of $ 21.3
million, or $ 0.12 per diluted share, for the first quarter of fiscal 2005.

“We have solidly returned our company to growth,” stated Jen-Hsun Huang,
president and CEO of NVIDIA. “We now have four exciting growth businesses – GPU,
MCP, wireless media processor, and consumer electronics. In addition, our gross
margin initiatives continue to deliver results ahead of schedule. Our efforts
over the past two years have put us back in growth mode and have positioned us
squarely at the centre of the digital media revolution.”

First Quarter Fiscal 2006 Highlights

• Gross margin improved 450 basis points over the gross margin for the first
quarter fiscal 2005.
• The NVIDIA nForce product line achieved record revenue.
• The NVIDIA Quadro product line achieved record revenue.
• NVIDIA and Sony Computer Entertainment executed the Definitive Agreement to
jointly develop the graphics processing unit for Sony Computer Entertainment’s
next-generation computer entertainment system.
• Introduced and delivered production volume of the NVIDIA nForce™ 4 SLI™ Intel
Edition media and communications processor (MCP) for Intel-based personal
computers.
• NVIDIA nForce MCPs increased their share of the AMD64 segment to 55 percent as
reported by Mercury Research for the quarter ending March 31, 2005.
• NVIDIA nForce Professional MCP shipped in its first enterprise server platform
– the HP ProLiant DL145 G2 server. The ProLiant DL145 G2 is an AMD Opteron-based
platform ideal for large clustered high-performance computing environments and
general purpose computing requirements.
• Introduced and delivered volume production of two new GeForce™ 6 graphics
processing units (GPUs) – the GeForce 6800 Ultra 512MB and the GeForce 6200 AGP
GPUs – designed for the enthusiast and value desktop segments, respectively.
• Introduced and delivered volume production of our fastest mobile GPU to date,
the NVIDIA® GeForce Go 6800 Ultra. The Dell Inspiron™ XPS Gen 2 was the first
notebook available with the GeForce Go 6800 Ultra mobile GPU.
• NVIDIA extended share from 67 percent to 70 percent from the fourth quarter of
calendar 2004 to the first quarter of calendar 2005 in the Performance DX9
Desktop GPU segment as reported in Mercury Research’s First Quarter PC Graphics
Report 2005.

NVIDIA has conducted a conference call with analysts and investors to discuss
its first quarter fiscal 2006 financial results and current financial prospects
yesterday. To listen to the call, please dial (706) 679-0543. A live Web cast
(listen-only mode) of the conference call will be held at the NVIDIA investor
relations Web site http://nvidia.com/ir and
at http://www.streetevents.com. The
Web cast will be recorded and available for replay until the Company’s
conference call to discuss its financial results for its second quarter fiscal
2006.