NVIDIA today reported financial results for the fourth quarter of fiscal 2006
and the fiscal year ended January 29, 2006. Revenue for the fiscal year ended
January 29, 2006 was a record $ 2.38 billion, compared to revenue of $ 2.01
billion for the fiscal year ended January 30, 2005.

"Fiscal 2006 was a milestone year for NVIDIA," stated Jen-Hsun Huang,
president and CEO at NVIDIA. "We led the GPU and core logic industry on every
front – technology leadership, product innovation, and operational excellence.
As a result, we delivered record annual results for revenue, operating income,
operating margin, and operating cash flow."

"Looking ahead into fiscal 2007, multiple important trends will create
substantial growth opportunities in our target markets – HD DVD and Blu-ray high
definition video, Microsoft Windows Vista, the 3G ramp and increasing multimedia
content for mobile devices, and next generation game consoles. We have aligned
ourselves with these exciting new growth drivers and are well positioned to have
another strong year."

NVIDIA Corporation today reported financial results for the fourth quarter of
fiscal 2006 and the fiscal year ended January 29, 2006.

For the fourth quarter of fiscal 2006, revenue was $ 633.6 million, compared
to $ 566.5 million for the fourth quarter of fiscal 2005, an increase of 12
percent. Operating income for the fourth quarter of fiscal 2006 experienced 97
percent growth to $ 112.3 million, compared to operating income of $ 57.2 million
for the fourth quarter of fiscal 2005. Net income for the fourth quarter of
fiscal 2006 was $ 98.1 million, or $ 0.53 per diluted share, compared to net
income of $ 48.0 million, or $ 0.27 per diluted share, for the fourth quarter of
fiscal 2005, a net income increase of 104 percent.

Revenue for the fiscal year ended January 29, 2006 was a record $ 2.38 billion,
compared to revenue of $ 2.01 billion for the fiscal year ended January 30, 2005.
Net income for the fiscal year ended January 29, 2006 was $ 302.6 million, or
$ 1.65 per diluted share, compared to net income of $ 100.4 million, or $ 0.57 per
diluted share, for the fiscal year ended January 30, 2005, a net income increase
of 202 percent.

“Fiscal 2006 was a milestone year for NVIDIA,” stated Jen-Hsun Huang, president
and CEO at NVIDIA. “We led the GPU and core logic industry on every front –
technology leadership, product innovation, and operational excellence. As a
result, we delivered record annual results for revenue, operating income,
operating margin, and operating cash flow.”

“Looking ahead into fiscal 2007, multiple important trends will create
substantial growth opportunities in our target markets – HD DVD and Blu-ray high
definition video, Microsoft Windows Vista, the 3G ramp and increasing multimedia
content for mobile devices, and next generation game consoles. We have aligned
ourselves with these exciting new growth drivers and are well positioned to have
another strong year.”

Fourth Quarter Fiscal 2006 and Recent Highlights:

  • Gross margin improved to 40.2 percent, an increase of 110 basis points
    sequentially from the third quarter fiscal 2006, and 600 basis points
    year-over-year.
  • NVIDIA increased its leadership share position in the desktop graphics
    processing unit (GPU) segment to 51 percent share, according to the Mercury
    Research Fourth Quarter 2005 PC Graphics Report.
  • NVIDIA shipped the NVIDIA nForce® 4 SLI XE and NVIDIA nForce4 Ultra Intel
    media and communications processors (MCPs). They represent the Company’s first
    discrete chipsets targeted at mainstream Intel-based motherboards. NVIDIA
    nForce MCP revenue for the fourth quarter of fiscal 2006 increased 83 percent
    year-over-year and has achieved record revenue for six consecutive quarters.
  • NVIDIA and Dell showcased the first ever Quad SLI™ PC – the Dimension XPS
    Renegade – at the Consumer Electronics Show (CES) 2006, and earned the “Best
    of CES 2006″ award for gaming.
  • The NVIDIA Quadro® professional product line increased its revenue 42
    percent from the fourth quarter fiscal 2005 and again achieved record revenue.
  • NVIDIA introduced three new notebook GPUs – the GeForce® Go 7800, GeForce
    Go 7600 and GeForce Go 7400 – with leading tier one and system builders
    worldwide.
  • NVIDIA shipped two new GeForce 7 desktop GPUs – the GeForce 7800 GTX 512
    and GeForce 7300 GS – for the enthusiast and mainstream desktop PC segments.
  • NVIDIA announced its intent to acquire ULi Electronics Inc., one of the PC
    industry’s most highly–regarded core logic developers.
  • NVIDIA announced that NVIDIA Quadro professional graphics will offer Adobe
    users direct GPU acceleration capabilities that increase application
    performance and video editing workflow for Adobe Product Studio. As a member
    of the Adobe OpenHD Alliance, NVIDIA is working with the industry to develop
    tools and technologies that enhance the productivity of HD video creation.
  • NVIDIA unveiled the NVIDIA GoForce® 5500 handheld GPU, the industry’s
    first handheld GPU to enable true, DVD-quality video, full H.264 processing
    for fluid digital TV, high-fidelity surround sound, rapid multi-shot
    photography, and console-class 3D graphics. Phones based on the NVIDIA GoForce
    5500 handheld GPU are expected to be available from key handset manufacturers
    before the 2006 holiday season.