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NVIDIA Corporation Announces Additional Equity Compensation Policies

 
 

NVIDIA Corporation:

Andrew Humber
European PR Manager
NVIDIA Ltd
ahumber@nvidia.com

Press Relations:

Ciarán Brennan or Clive Gorman
Bastion (NVIDIA PR)
Tel: +44 (20) 7490 1323
clive@bastion.co.uk

FOR IMMEDIATE RELEASE

NVIDIA Corporation Announces Additional Equity Compensation Policies

SANTA CLARA, CA - July 9, 2004 - NVIDIA Corporation (Nasdaq: NVDA), today announced that the Compensation Committee of its Board of Directors has adopted additional equity policies for its employees and officers. NVIDIA believes that properly structured equity compensation programs align the long-term interests of its stockholders and employees by creating a strong, direct link between employee compensation and stock appreciation. By adopting the additional policies, which it believes represents best compensation practices, NVIDIA seeks to strengthen that link. NVIDIA consulted a number of stakeholders in developing these policies and in particular, received input and an institutional investor perspective from TIAA-CREF. The additional policies include the following actions:

  • Publishing maximum annual net dilution from stock options, as approved by the NVIDIA Compensation Committee.
  • Eliminating the automatic annual increase in the number of shares, i.e., the “evergreen” provision, available for issuance under NVIDIA’s 1998 Equity Incentive Plan.
  • Reducing the average number of shares granted to new employees, such that as compared to fiscal 2001, the average grant size in fiscal 2004 was reduced by 65%.
  • Establishing a policy to encourage equity ownership by officers, reflecting the practices historically followed by our officers.

“These additional policies demonstrate NVIDIA’s commitment to the policies of good corporate governance and to a continuing process of enhancing our management and operations,” stated Jen-Hsun Huang, president and chief executive officer of NVIDIA.

About NVIDIA
NVIDIA Corporation is a market leader in visual computing technology dedicated to creating products that enhance the interactive experience on consumer and professional computing platforms. Its graphics and communications processors have broad market reach and are incorporated into a wide variety of computing platforms, including consumer digital-media PCs, enterprise PCs, professional workstations, digital content creation systems, notebook PCs, military navigation systems and video game consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 1,800 people worldwide. For more information, visit the Company’s Web site at www.nvidia.co.uk.

Certain statements in this press release, including any statements relating to the Company's performance expectations for NVIDIA's family of products and expectations of continued revenue growth, are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, manufacturing and other delays relating to new products, difficulties in the fabrication process and dependence of the Company on third-party manufacturers, general industry trends including cyclical trends in the PC and semiconductor industries, the impact of competitive products and pricing alternatives, market acceptance of the Company's new products and the Company's dependence on third-party developers and publishers. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Certain Business Risks," for a fuller discussion of these and other risks and uncertainties.

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Copyright © 2004 NVIDIA Corporation. All rights reserved. All company and/or product names may be trade names, trademarks and/or registered trademarks of the respective owners with which they are associated. Features, pricing, availability and specifications are subject to change without notice.

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