Exhibit 99.1

               NEOMAGIC(R) CORPORATION DELAYS REVERSE STOCK SPLIT

SANTA CLARA, Calif., Aug. 12 /PRNewswire-FirstCall/ -- As a result of an error
made by Nasdaq, NeoMagic Corporation's (Nasdaq: NMGC) 1 for 5 reverse stock
split that was scheduled to be effective after the close of market on August 11,
2005 will now be effective after the close of market on August 12, 2005. The
Company's common stock will begin trading on a reverse split basis on August 15,
2005 under the symbol "NMGCD", for a period of 20 days. Thereafter, it will
resume trading under the Company's original symbol "NMGC".

More information about the reverse split is available in NeoMagic's definitive
proxy statement filed with the Securities and Exchange Commission on June 10,
2005.

About NeoMagic

NeoMagic Corporation, based in Santa Clara, California, enables new generations
of handheld systems with its Applications Processors that are designed to offer
the lowest power, smallest form-factor and best multimedia features and
performance. The company is a pioneer in the integration of complex logic,
memory and analog circuits into single-chip solutions. Information on the
company may be found on the World Wide Web at www.neomagic.com.

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

(Logo: http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO )

CONTACT:  Scott Sullinger, Chief Financial Officer of NeoMagic,
+1-408-486-3879/
http://www.newscom.com/cgi-bin/prnh/20020802/NMGCLOGO
Web site:  http://www.neomagic.com /