inSilicon Corporation Reports Record Revenue and Net Income

inSilicon Corporation Reports Record Revenue And Net Income

Company reports 64% revenue growth, significant profit improvement

San Jose, CA, July 18, 2000 - inSilicon Corporation (Nasdaq: INSN) -- a leading provider of communications technology for complex systems-on-chip (SOC) -- today reported record net revenue of $6,811,000 for its third fiscal quarter ended June 30, 2000, a 64% increase over the third quarter of 1999. Pro forma net income for the third quarter of 2000 was $859,000, or $0.06 per diluted share, as compared to a pro forma net loss of ($795,000), or ($0.08) per pro forma diluted share, in the third quarter of the prior year.

For the nine months ended June 30, 2000, revenue was $17,906,000, a 28% increase over net revenue for the comparable period of 1999. For the nine months ended June 30, 2000, pro forma net income was $1,055,000, or $0.08 per pro forma diluted share, as compared to a pro forma net loss of ($1,222,000), or ($0.12) per pro forma diluted share, in the comparable period of 1999.

Pro forma net income excludes non-cash charges related to the amortization of purchased intangible assets and stock-related compensation charges. Including these charges, net income was $37,000, or $0.00 per diluted share, in the third quarter of fiscal 2000 as compared to a net loss of ($2,071,000), or ($0.20) per pro forma diluted share, in the third quarter of fiscal 1999. Net loss for the nine months ended June 30, 2000 was ($1,631,000), or ($0.14) per pro forma diluted share, as compared to a net loss of ($4,760,000), or ($0.46) per pro forma diluted share, in the comparable period of 1999.

"We made excellent progress in our third quarter in extending our worldwide communications IP leadership," said Wayne Cantwell, President and Chief Executive Officer. "We grew revenue by greater than 60%, and more than doubled revenue in each of our three international regions. We brought on nine new distribution partners which will help drive future demand. And we announced three new products that we believe will contribute significantly to our growth going into our next fiscal year."

Highlights for the quarter:

About inSilicon
About inSilicon inSilicon Corporation is a leading provider of communications and connectivity technology used by semiconductor and systems companies to design complex systems-on-chip that are critical components of digital devices. inSilicon's technology provides customers faster time-to-market, and reduced risk and development cost. The Company's enabling communications technologies, including Ethernet, USB, PCI, and IEEE 1394, are used in a wide variety of markets encompassing communications, consumer, computing, and office automation.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

In addition to the historical information contained herein, statements in this press release may contain forward-looking statements within the meaning of the Federal securities laws and are subject to the safe harbors created thereby. The following are among the factors that could cause actual results to differ materially from the forward-looking statements: the risks that products will fail to achieve market acceptance, the timing of customer orders, delays in the design process, the length of inSilicon Corporations' sales cycle, inSilicon Corporation's ability to develop, introduce and market new products and product enhancements, changes in product mix or distribution channels; the demand for semiconductors and end-user products that incorporate semiconductors; technological difficulties and resource constraints encountered in developing and/or introducing new products; natural disasters/acts of God; and other risks both domestic and international. Forward-looking statements contained in this press release regarding expected financial results, industry trends, sales and future product development and business strategies and activities should be considered in light of these factors and those factors discussed from time to time the Company's public reports filed with the Securities and Exchange Commission, such as those discussed under "Risk Factors"' in the Company's report on form S-1 filed in March 2000.

inSilicon and JVX are trademarks of inSilicon Corporation. All other trademarks are the property of their respective owners.

Contacts:

inSilicon
Corporate Communications
Robert Young
408.849.1900

Morgen-Walke Associates
Investor Relations
Susan Hallahan-Glen

Financial Media Relations
Peter DeLauzon
415.296.7383

Media Relations
Walt & Company
Kristin Jones
Rebecca Wind
408.496.0900