SAN JOSE, Calif., Jan. 11, 2011 /PRNewswire/ -- NeoMagic Corporation (Pink Sheets: NMGC) has announced that it has retained the services of Instream Partners, LLC, a leading investment banking firm, to assist NeoMagic in soliciting, structuring and negotiating financing opportunities, which may include a private placement.

"We are pleased to have Instream Partners assist us in obtaining development funding for a new suite of USB 3.0 based semiconductors that we expect to include UFD (USB flash drive) and SSD (solid state drive) controllers," said Syed Zaidi, President and CEO of NeoMagic Corporation.  Mr. Zaidi continued, "Any funding received will allow us to expand our in-house development team and execute our strategic commitment to bring new technologies to market.  We believe Instream's involvement will accelerate the achievement of our goal of bringing digital storage to market."

"As these high performance media technologies continue to gain acceptance in consumer and enterprise markets, I believe NeoMagic is positioned to be a significant competitor," said David Tomasello, Managing Director of Bluestone Financial, LTD., the Company's largest investor, and Chairman of NeoMagic Corporation. He continued, "Instream brings a unique expertise in the banking and semiconductor sectors that should enable NeoMagic to expand its investor base. Bluestone remains committed as a long-term investor of NeoMagic."

"Instream has strong domain expertise in the technology sector," said John Schlesinger, Managing Director of Instream Partners. "We are excited to work with NeoMagic's management team and Board of Directors to obtain funding to support their development in these high growth markets."

About Instream Partners

Instream Partners is based in Menlo Park, California and specializes in mergers, acquisitions, private capital raising and valuations for public and private technology and growth companies. Founded in 2000, Instream has a strong track record completing successful transactions for middle market technology companies. For more information, visit www.instreampartners.com or contact John Schlesinger at 650-853-8699.

About NeoMagic

NeoMagic designs and delivers consumer electronic device solutions with semiconductors and software offering exciting new product functionality for Video, TV, Imaging, Graphics, and Audio. We provide low cost, innovative multimedia chip technology for tomorrow's entertainment and communication needs. Our capabilities give our partners and their customers' high quality answers to excite and enhance the consumer's lifestyle. For more information, visit www.neomagic.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve significant risks and uncertainties. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management and are subject to significant risks and uncertainties, including those detailed from time-to-time in the Company's filings with the Securities and Exchange Commission, including our Form 10-K for the year ended January 31, 2010, filed on May 17, 2010. Actual results, including, without limitation, the Company's ability to successfully raise capital, may differ significantly from those set forth in the forward-looking statements. Forward-looking statements involve risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control). For example, statements about our expectations in connection with financings are subject to a variety of uncertainties and are subject to change as a result of changes in circumstances that could make it difficult for us to consummate such financings on terms acceptable to the Company, or at all. The Company undertakes no obligation to update any forward-looking statements, except as provided for by law.

NeoMagic is a registered trademark of NeoMagic Corporation and MiMagic is trademarked. All other trademarks are the property of their respective owners. NeoMagic disclaims any proprietary interest in the marks and names of others.

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SOURCE NeoMagic Corporation

Copyright 2011 PR Newswire

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