FREMONT, Calif. - July 8, 2004 - Didier Pietri, Vialta's Chief Executive Officer, announced today that Yin-Wu Chen, previously Vice President of Engineering, has been promoted to the newly created position of President and Chief Operating Officer. Mr. Chen will continue to report to Mr. Pietri, who previously held the title of President and will remain as Chief Executive Officer. Mr. Chen will continue working closely with Mr. Pietri in his new role.

Mr. Chen joined Vialta in 2001 and has over 18 years of consumer electronics experience. Mr. Chen received a Ph.D. in Electrical Engineering from the University of Pennsylvania. He co-founded and was President and Chief Executive Officer of Proton Communication - a developer of videophones, CCD cameras and digital recorders. He also served as Executive Vice-President of the parent company, Proton Electronic, and was primarily responsible for the overall operations of the 650-person firm.

Didier Pietri stated, "Yin-Wu has played an instrumental role in the development and manufacturing of Vialta's award-winning Beamer videophone line. In addition to his engineering expertise, he has demonstrated excellent leadership ability in our launch of unique and innovative consumer electronic products." Mr. Pietri concluded, "We look forward to Mr. Chen continuing to contribute to the development of Vialta's product lines and our overall success."

About Vialta

Vialta develops, designs and markets unique and innovative home entertainment and communications products for the mainstream consumer. The company was formed in April 1999 and is publicly traded on the OTC Bulletin Board under the symbol VLTA. The company is headquartered in Fremont, California with offices in Los Angeles and Hong Kong.

Forward-Looking Statements

The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the possible reduction of consumer spending, the timely availability and acceptance of the Company's new and existing products, the impact of competitive products and pricing, the dependence on continued growth in demand for consumer products, the risk that products shipped by the Company will be returned, and the other risks detailed from time to time in the SEC reports of Vialta, including the reports on Form 10-K and Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.