Cadence Announces That Texas Instruments Expands License Agreement

SAN JOSE, Calif.----Oct. 16, 2000--Cadence Design Systems, Inc. (NYSE: CDN), the world's leading supplier of electronic design products and services, today announced that Texas Instruments (TI) has renewed and substantially increased its license agreement for Cadence® EDA technology, including key new SP&R (synthesis/place and route) design solutions and the Assura(TM) physical verification and extraction tool suite.

The agreement is the largest ever executed by TI, and will provide end-to-end Cadence design solutions. Charlie Simon, manager of EDA software and IP asset management at TI, said, ``The new Cadence agreement is the most comprehensive EDA arrangement Texas Instruments has negotiated. It includes access to Cadence's current and new EDA software, software support, Quickturn hardware, and methodology services.''

``With Cadence, TI is collaborating with a world-class company that has the EDA solutions, the ready-for-market expertise, and the commitment to the convergence that is so critical to system-on-chip (SOC) design,'' said Keh-Shew Lu, senior vice president of TI's Mixed-Signal & Logic Products (MSLP) Division. ``This agreement underscores our belief that Cadence delivers one of the most comprehensive, powerful packages of EDA solutions available today.''

Commenting on the significance of the TI license renewal, Cadence president and CEO Ray Bingham said, ``This contract reflects the new way Cadence is working with its customers. Our collaboration with TI, the world leader in DSP and analog products that drive the digitalization of electronics, will result in significant new products and technologies, including the convergence of analog, digital, and radio frequency (RF) on a single chip.''

TI Chooses Cadence SP&R Tools

As part of this licensing agreement, TI has added Cadence SP&R design solutions for use worldwide on TI's most complex SOCs within its Mixed-Signal Products (MSP) and Digital Audio/Video (DAV) Divisions. TI's MSP group focuses on complex, high performance SOCs for the digital speakers, video, broadband, and RF markets.

After an extensive evaluation, TI selected Cadence SP&R solutions because they deliver ease of use, predictability, and excellent quality of results. Felicia James, EDA Manager of TI's MSPD division, said, ``We tested SP&R on several production designs and found that the technology produced excellent timing performance and reduced area when compared to previous solutions. The tight correlation with final post-routed results will shave months off our schedule for sub 0.18 micron designs, enhancing our customers' ability to be fast to market.''

According to Jeff Roane, vice president of SP&R marketing at Cadence, ``We are extremely pleased that TI, a global leader in IC design, has chosen our SP&R solutions to meet their design needs. TI's adoption of Cadence SP&R reflects the tremendous market momentum for an integrated, front-to-back IC design solution. By satisfying the tough requirements of the world's leading chip companies, SP&R has become the market's number one choice for timing closure.''

About Cadence

Cadence is the largest supplier of electronic design automation products, methodology services, and design services used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronics-based products. With approximately 5,100 employees and 1999 annual revenue of $1.1 billion, Cadence has sales offices, design centers, and research facilities located around the world. The company is headquartered in San Jose, Calif., and traded on the New York Stock Exchange under the symbol CDN. For more information, visit http://www.cadence.com.

Note to Editors: Cadence and the Cadence logo are registered trademarks, and Quickturn, Assura, Envisia, and Silicon Ensemble are trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

Contact:
     Cadence Design Systems, Inc.
     Kevin Kimball, 408/943-1234
     kkimball@cadence.com