Xtechnology Inc, San Jose has given IBM Corp an OEM contract for its IBM Video Integration Processor and plans to market it with its own Xtec AGX016 Graphics Controller from spring next year. IBM will design and manufacture the product incorporating algorithms developed in its Research Division into custom VLSI chips developed at Research Triangle Park, North Carolina. IBM and Xtec will be jointly responsible for creating hardware and software to optimise the Video Integration Processor for the Xtec environment. The AGXO16 Windows graphics controller has a dedicated co-processor interface for direct communication with the Video Integration Processor, which enables seamless integration of full motion video in a Windows environment with the incoming image to be scaled to any desired size from 1% to 400% of its original size. Proprietary algorithms are used to produce very high quality, artifact-free images. RGB8, RGB16 and RGB24 formats are supported. The processor relieves the CPU of the burden of video pro-cessing so that two independently-sized, high-performance windows of 30 frames per second full motion video can be shown simultaneously.