|   
|   | 7
      year Average | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 |  
| %
      Growth from Q2 to Q3 | 12.30% | -0.48% | 18.62% | 16.07% | 16.20% | 11.59% | 12.52% | 11.58% | 17.84% |  Table 1: Growth rates from Q2 to Q3 from 2001 to 2008 TOTAL MARKETMarket
    shares shifted for the big three, AMD, Intel and Nvidia, and put pressure
    on the smaller three, Matrix SiS and VIA/S3, and still almost everyone
    showed an increase in shipments as indicated in Table 2.
 
| Vendor | This
      quarter | Market
      share | Last
      quarter | Market
      share | Growth
      Qtr-Qtr | A
      year ago | Market
      share | Growth
      Yr-Yr |  
| AMD | 22.90 | 20.6% | 17.11 | 18.1% | 33.8% | 18.66 | 20.5% | 22.8% |  
| Intel | 54.95 | 49.4% | 44.67 | 47.3% | 23.0% | 30.30 | 33.4% | 81.4% |  
| Nvidia | 30.93 | 27.8% | 29.63 | 31.4% | 4.4% | 33.04 | 36.4% | -6.4% |  
| Matrox | 0.10 | 0.1% | 0.10 | 0.1% | 0.0% | 0.12 | 0.1% | -16.7% |  
| SiS | 1.35 | 1.2% | 1.90 | 2.0% | -28.9% | 2.10 | 2.3% | -35.7% |  
| VIA/S3 | 1.02 | 0.9% | 1.00 | 1.1% | 2.1% | 6.63 | 7.3% | -84.6% |  
| Total | 111.26 | 100.0% | 94.42 | 100.0% | 17.8% | 90.85 | 100.0% | 22.5% |  Table 2: Total Graphics Chip
    Market shares for Q3'08
 DESKTOPFor desktop GPUs Intel increased its first place position to 43.9% share
    while Nvidia's position slipped to 32.6% and AMD climbed up to 20.3%.
 
 Desktop GPUs saw an increase of 4.7% this quarter to 61.9 million units.
 
 NOTEBOOKS
 In the notebook GPU market Intel GPU shipments dropped one point to 56.2%
    while Nvidia GPU shipments declined to 21.8% and AMD jumped to 20.9% as
    shown in Table 3.
 
 Notebook chips soared almost by 40% quarter-to-quarter to 49.4 million
    units, to claim 44.4% of the market.
 
|  | Q4'07 | Q1'08 | Q2'08 | Q3'08 |  
| AMD | 18.3% | 17.4% | 17.9% | 20.9% |  
| Intel | 53.9% | 52.9% | 57.1% | 56.2% |  
| Nvidia | 26.2% | 27.0% | 23.6% | 21.8% |  Table 3: Market share in notebook
    graphics chips for Q4 2007 to Q3 2008  "The third quarter is seasonally up as OEMs place
    orders for chips to build inventory for the holiday season. However, this
    quarter was up more than any other for some time, and in spite of
    suggestions of a recession that started last Q4," said Dr. Jon Peddie,
    president of Jon Peddie Research in Tiburon California. "Desktops
    increased seasonally and notebooks enjoyed quite significant gains."  Peddie notes that Q4'08 will be an
    interesting quarter as AMD and Nvidia are not expected to release any more
    new GPUs given the large number of introductions in the last three
    quarters, and Intel and AMD have stabilized on their integrated offerings.
 Further, says Peddie, although there was amazing growth in Q3 this year,
    the gloom and doom scenarios are having their effect on business and
    consumer spending plans, and while Q4 is usually the crescendo of the year,
    it could well be flat (compared to Q3) this year.
 
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