Virage Logic Reports Fourth-Quarter Fiscal 2005 Results

• Appointed industry veteran Jim Bailey as vice president of Worldwide Sales to drive the company's global sales and customer service initiatives based on his 20 years of experience in the electronic design automation (EDA) industry
• Announced agreements with MIPS Technologies (Nasdaq:MIPS) to provide system-on-chip (SoC) designers with the convenience of a single license to cover the use of MIPS(R) 32-bit cores and Virage Logic's IP, and accelerate processor performance with jointly developed core-optimized IP kits
• Booked a total of 12 new 90nm agreements, including three with new customers
• Signed a direct royalty-bearing agreement for the company's first Silicon Aware IP(TM) offering -- the STAR Memory System -- with a new customer bringing the total number of STAR Memory System agreements to date to 118
• Signed seven new ASAP Logic(TM) and IPrima Foundation semiconductor IP platform agreements
• Signed two new Non-Volatile Electrically Alterable (NOVeA(R)) agreements bringing the total number of NOVeA agreements signed to date to 19
• Recorded revenue under licensing agreements with 48 customers -- 43 existing and five new.

Business Outlook

Virage Logic also announced today its business outlook for the first quarter of fiscal 2006. The company currently anticipates total revenues of approximately $13.6 million to $13.8 million. Expected total revenues for the quarter are anticipated to include royalties of approximately $2.9 million to $3.0 million. The company expects to report GAAP net income of approximately $0.00 to $0.01 per diluted share for the three months ending December 31, 2005. Anticipated GAAP net income for the three months ending December 31, 2005 excludes the effects of the adoption of SFAS 123(R), as management is currently evaluating its future impact. Although this news release will be available on the company's website, the company disclaims any duty or intention to update these or any other forward-looking statements.

Financial Tables

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Webcast and Taped Replay

Virage Logic's management plans to hold a teleconference on fourth-quarter 2005 results at 1:30 p.m. PT / 4:30 p.m. ET today. A live webcast of management's teleconference regarding fourth-quarter results will be available to all investors, and an archived webcast will be available from October 27, 2005 until October 27, 2006 on the Investor Relations page of Virage Logic's website at http://www.viragelogic.com. In addition, a telephonic replay will be available through November 3, 2005 at (719) 457-0820, access code 8445849.

About Virage Logic

Founded in 1996, Virage Logic Corporation (Nasdaq:VIRL) rapidly established itself as a technology and market leader in providing advanced embedded memory intellectual property (IP) for the design of complex integrated circuits. Today the company is a global leader in semiconductor IP platforms comprising embedded memories, logic, and I/Os and is pioneering the development of a new class of IP called Silicon Aware IP. Silicon Aware IP tightly integrates Physical IP (memory, logic and I/Os) with the embedded test, diagnostic, and repair capabilities of Infrastructure IP to help ensure manufacturability and optimized yield at the advanced process nodes. Virage Logic's highly differentiated product portfolio provides higher performance, lower power, higher density and optimal yield to foundries, integrated device manufacturers (IDMs) and fabless customers who develop products for the consumer, communications and networking, hand-held and portable, and computer and graphics markets. The company uses its FirstPass-Silicon(TM) Characterization Lab for certain products to help ensure high quality, reliable IP across a wide range of foundries and process technologies. Headquartered in Fremont, California, Virage Logic has R&D, sales and support offices worldwide. For more information, visit www.viragelogic.com.