Arasan Chip Systems Emerging Markets Program Sends USB IP Sales Soaring in China

Special Incentives and Services Bring Huge Benefits to Companies Using Arasan's Silicon Intellectual Property

SAN JOSE, Calif.-- July 24, 2007 --Arasan Chip Systems, Inc. ("Arasan"), a leading supplier of reusable Intellectual Property (IP) cores, software, and associated design services, today announced that USB IP Core Sales are soaring as a result of its new Emerging Markets Program operating in Asia. Arasan is gaining market share rapidly by offering China customers a special set of incentives on Silicon IP along with the critical elements of a total USB solution that they require to efficiently integrate USB into a SoC/ASIC. Arasans ability to provide onsite support and integration services in China and Taiwan have set it apart from the pack.

Arasan and our partner company in Asia, EE Solutions, launched the Emerging Market's Program in December of 2006. The program focuses on the IP and the critical elements of a total solution necessary for success in China. The program gives companies access to a select list of high quality IP under special terms. In addition to the IP purchasing incentives, EE Solutions and Arasan provide USB software stacks, hardware design kits, and special support services to make the IP integration easy and efficient, lowering the total cost of deployment.

"Our IP competitors tend to focus on the selling an integrated PHY and mark up those sales to the point where they negatively impact end product costs. This also limits the ability to use other foundries. External USB PHYs are readily available at discounted prices and many Foundries offer low-cost USB PHYs for SOC integration. This combined with our higher level of On-site support for this market, is a much more effective solution for the China," said Richard Timpa, Vice President of Sales at Arasan Chip Systems. "China companies realize that by taking advantage of the specialized support provided by Arasan during integration, they can get to market quickly in this competitive environment."

"Arasan and EE Solutions provide the USB software stacks, the development platforms, and integration services onsite while other companies just focus on selling IP. Customers who want to build USB functionality into their products get the lowest cost of ownership and quickest time to market through Arasan's Total USB Solution," said Jim Su, President of EE Solutions. "EE Solutions is proudly working with Arasan to provide the Total USB Solution and we are confident our China Customers can get all the benefit from Arasan's top rated IP and strong local support."

About USB

Arasan Chip Systems is one of the largest providers of USB 1.1 and 2.0 IP Cores. Our first USB Device Core was released in 1996. Arasan's Host, Device and Hub are silicon proven in production. Arasan Chip Systems offers a comprehensive product line including the USB 1.1 Device Core, USB 1.1 Host Core, USB 1.1 Hub Core, USB 2.0 Device Core, USB 2.0 Host Core, USB 2.0 OTG Core and the USB 2.0 Hub core. All cores are available with Industry Standard Interfaces like AHB, AXI and VCI and can be customized to fit your exact needs.

Arasan's USB IP Cores have been tested with multiple PHY vendors like SMIC, TSMC, SMSC, NXP (Philips), UMC, and Fujitsu giving our licensees a wide choice of PHY options.

Licensees of Arasan's USB Technology include companies like TI, Cisco, NEC Electronics, ISSI, Staccato Communications, Los Alamos National Labs, US Army, and General Atomics. All of Arasan Chip Systems USB Cores are Silicon Proven, certified and in production.

Total Technology Solution

Arasan provides a Total Technology Solution to all its licensees including IP source code, a test environment, sample device drivers, synthesis scripts, and complete technical documentation. The Total Technology Solution also includes optional Product Design Development tools like the Hardware Validation Platform and Software targeted for Linux. Custom bus integration services are offered to integrate the IP in a customer specific manner.

Arasan's Validation Platform is a stand-alone board with used for compliance testing of as well as prototyping, including driver development. The Validation Platform is the easiest way to prototype and to demonstrate compliance for customers. The Platform is available for purchase.

About Arasan

Arasan Chip Systems Inc. founded in 1995, is a leading supplier of Reusable Intellectual Property (IP's) cores, semiconductors and electronic design services. Arasan's product portfolio is focused on Bus Interfaces and includes IP's for USB 1.1 & 2.0, PCI, SDIO and CE-ATA technologies. Arasan's products and services enable businesses to develop and leverage product design and development. Arasan Chip Systems has been an executive member of SD Card Association since 2001, MMCA since 2003, CE-ATA and MIPI since 2004. Arasan is headquartered in San Jose, California, with design centers in India and support options available in Taiwan, China & Europe.
Visit: www.arasan.com for more product information.

About EE-Solutions

Founded in 1999, EE-Solutions is a leading provider of turnkey ASIC and System-on-a-Chip (SoC) design services to IC and systems companies worldwide. The company has been recognized for its engineering background, demonstrated experience in overseas delivery, precision in executing concepts, advanced design and research capabilities, and as providing customers with optimal solutions to achieve their business objectives. EE-Solutions offers effective design methodologies and a wide range of advanced intellectual property and professional personnel to help customers step into the low power and ultra-deep-submicron design. EE-Solutions is headquartered in Hsinchu City, Taiwan, with branch offices in Taipei, Taiwan; Shanghai and Shenzhen, China and Fremont, California, and has representatives in Toronto, Canada; Seoul, Korea; and Singapore.
Visit EE-Solutions on the Web at www.e2-solutions.com.tw/english/index.html.