CPU Tech and IBM Collaborate on New Class of Semiconductor Devices; Acalis(TM) Programmable Semiconductor Devices add Flexibility, Capacity and Software Compatibility to Multi-Core Processing Solutions

PLEASANTON, Calif.--July 21, 2006--CPU Technology Inc.(R), a leading supplier of high performance, System-on-a-Chip (SoC) based computing systems, announced today a new class of semiconductor devices called Field Programmable Multi-core Chips (FPMCs). In collaboration with IBM, CPU Tech is integrating multiple PowerPC(R) cores into the Acalis(TM) product family. Acalis devices facilitate the migration of microprocessor based systems to multi-core computing, while uniquely preserving the investment in existing software. The collaboration also ensures onshore fabrication of the new devices using IBM's Trusted Foundry.

"Size, power and throughput limitations associated with microprocessors are driving the adoption of multi-core computing," said Edward King, CPU Tech's CEO. "SoC technology can effectively solve these problems. However, transition to the multi-core era presents the additional challenge of software compatibility. Acalis, the world's first FPMC product line, can directly execute unmodified legacy application software and simultaneously execute IBM PowerPC multi-core software on a single chip device."

This new generation of programmable semiconductor devices combines the flexibility of FPGAs with the speed and capacity of ASICs. The Acalis family is applicable to a broad range of general purpose and embedded computing systems. Customers can exploit the functionality, performance and compatibility characteristics of a single FPMC across multiple product lines.

Combining CPU Tech's experience and IP with IBM's PowerPC technology will provide customers a programmable, high performance, SoC solution capable of helping customers modernize legacy systems into leading edge systems," said Ron Martino, Director of PowerPC Standard Products, IBM Technology Collaboration Solutions. "We are excited about working with CPU Tech and their new Acalis product offerings."

About CPU Technology, Inc.

CPU Technology, Inc. develops and supplies Compatible System-on-a-Chip solutions for the high-end computing market. The company's products and services directly address the challenges associated with the transformation of microprocessor-based electronic systems to the SoC / MultiCore era. CPU Tech is a privately held company founded in 1989 with headquarters in Pleasanton, CA, and business development offices in Reston, VA. Current investors include The Carlyle Group. Visit www.cputech.com for additional information.