PowerLayer Microsystems Licenses MIPS32 24KE Core for Next-Generation DTV Designs in Growing China Market

Asia Pacific Continues as Company's Hottest Growth Region

MOUNTAIN VIEW, Calif. - August 29, 2007 - MIPS Technologies, Inc., a leading provider of industry-standard processor architectures and cores for digital consumer, networking, personal entertainment, communications and business applications, today announced that PowerLayer Microsystems has licensed the MIPS32 24KEc™ processor core to advance the development of next-generation digital television (DTV) products.

Today, Asia Pacific represents MIPS Technologies' fastest growing region worldwide. Asia Pacific's rapid growth has resulted in unprecedented consumer demand for home entertainment, a market where MIPS has been building a prominent position. According to In-Stat, the popularity of digital television in China continues to grow - in 2006 alone, nearly seven million households were converted from analog cable TV to digital cable.

"We are delighted that PowerLayer has selected our MIPS-Verified™ 24KE core to drive future DTV development in an exploding and rapidly evolving digital TV market," said Brad Holtzinger, vice president of worldwide sales at MIPS Technologies. "Our market leadership in DTV, combined with PowerLayer's innovative solutions, will accelerate the delivery of ground-breaking MIPS-Based™ products throughout Asia Pacific."

"MIPS Technologies' proven architecture and cores, coupled with its commanding presence in the DTV arena and robust ecosystem, makes them the right business choice for PowerLayer as we move forward in the development of new and exciting products for the digital living room," said Dr. Xu Dong, president and chief operating officer at PowerLayer. "Our close collaboration with MIPS will help us continue to provide our customers with the cutting-edge solutions they need to succeed in a fiercely competitive digital consumer marketplace."

MIPS Technologies offers SoC designers a tailored solution for high-performance, low-power, cost-effective consumer applications. The first MIPS core with DSP extensions, the 24KE core family significantly reduces overall SoC die area, cost, and power consumption and improves signal processing performance up to 3x compared to RISC implementations without the DSP ASE.

About PowerLayer Microsystems
With major operations in Asia Pacific including Hong Kong, Beijing and Shenzhen, PowerLayer Microsystems, a Cayman Islands company, is dedicated to the development of advanced digital consumer SoCs for DTV, computer, broadband, mobile communication, information appliance and other emerging applications. For additional information, please visit www.plmhinc.com.

About MIPS Technologies
MIPS Technologies, Inc. (NASDAQ: MIPS) is a leading provider of industry-standard processor architectures and cores for digital consumer, networking, personal entertainment, communications and business applications. The company drives the broadest architectural alliance that delivers 32- and 64-bit embedded RISC solutions to the embedded market, and in combination with its licensees, offers the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products worldwide. MIPS Technologies currently owns more than 400 patent properties (patents and applications) worldwide and licenses its intellectual property to today's leading semiconductor companies, ASIC developers and system OEMs.

Today, MIPS-Based designs are integrated in millions of products around the world, including broadband devices from Linksys, digital cameras from Canon, DTVs and entertainment systems from Sony, DVD Recordable devices from Pioneer, digital set-top boxes from Motorola, network routers from Cisco and laser printers from Hewlett-Packard. Founded in 1998, MIPS Technologies is based in Mountain View, California, with offices worldwide. For more information, please contact (650) 567-5000 or visit http://www.mips.com.