U.S. Securities and Exchange Commission

Litigation Release No. 18343 / September 11, 2003

Auditing and Accounting Enforcement Release No. 1860 / September 11, 2003

United States District Court for the Northern District of California, Civil
Action No. C 03-04135 HRL

   The United States Securities and Exchange Commission announced today
   the filing of financial reporting fraud charges against Christine B.
   Hoberg, former chief financial officer of Nvidia Corporation, alleging
   that she purposefully failed to record $3.3 million in expenses
   relating to a deal with a supplier. As a result of that transaction,
   the complaint alleges, Nvidia materially overstated its gross profit
   and income for the quarter ended April 30, 2000.

   Hoberg, 48, of Los Altos, California, was charged in a complaint filed
   in the U.S. District Court for the Northern District of California.
   Simultaneous with the filing of the complaint, and without admitting
   or denying the allegations, Hoberg consented to a court order
   directing her to pay $671,694.99 (including $596,694.99 in
   disgorgement of ill-gotten gains and prejudgment interest and $75,000
   in penalties), prohibiting her from serving as an officer or director
   of any public company for five years, and enjoining her from
   violations of the antifraud and other provisions of the securities
   laws.

   According to the complaint against Hoberg, in early 2000 Nvidia was
   lagging behind expectations for its financial performance for the
   quarter ended April 30, 2000. In order to meet those expectations,
   Nvidia entered into an agreement with a supplier in which the supplier
   granted Nvidia $3.3 million in cost reduction credits for the April 30
   quarter. In exchange, though, Nvidia agreed to repay the supplier this
   same amount by paying artificially higher prices on purchases later in
   the year.

   Under generally accepted accounting principles ("GAAP"), Nvidia's
   explicit agreement to repay the costs to its supplier created a
   liability that Nvidia was required to record in its accounting
   records. Thus, under GAAP, Nvidia should have recorded both the cost
   reductions and an offsetting liability for its agreement to repay the
   costs in the future.

   Instead, Hoberg directed that Nvidia record only the cost reductions
   portion of the transaction on its books for the April 30 quarter. By
   failing to record the offsetting $3.3 million liability for the second
   portion of the deal, Hoberg led Nvidia to overstate its gross profit