S3 Acquires Acacia Semiconductor S.A.

Dublin, Ireland & Lisbon, Portugal - October 31st, 2007 - Silicon & Software Systems (S3), the Connected Consumer Technology Company and leading provider of semiconductor mixed signal Intellectual Property (IP) for consumer products, today announced that the company has acquired Acacia Semiconductor S.A., a developer of high-performance data converter IP based in Portugal. This acquisition is designed to strengthen S3’s position in the market and help deliver on its strategy to be the world-leading specialist provider of analog mixed signal IP.

Acacia Semiconductor, a privately-held company, was founded in 2003 as a spin-off from the Microelectronics Signal-Processing group at CRI-UNINOVA, an R&D sub-unit associated with the Faculty of Science and Technology of Lisbon (FCT), in Portugal. Acacia Semiconductor has since then developed a portfolio of best-in-class, high performance data converter IP, targeting consumer and communications applications, through a unique combination of experienced designers, innovative analog design techniques and proprietary analog design optimization and sizing tools.

With the acquisition of Acacia, S3 will add higher speed, higher resolution and lower power data converters to its extensive IP portfolio, optimized for integration into SoCs (System-on-Chips) targeting consumer, wireless connectivity and digital broadcast applications. End markets served by existing S3 clients include WiFi, WiMAX, mobile digital broadcasting, High-Definition (HD) video applications and power-line communications.

The integration of Acacia’s technology and its full team of designers will extend S3’s silicon-proven mixed signal IP portfolio and engineering expertise, further enhancing S3’s proven low-power high-performance products, analog design and process re-targeting capabilities. S3 expects this acquisition to enable the company to continue on a high-growth path in its mixed signal IP business and to grow further into the market through Acacia’s established customer base.

“S3’s acquisition of Acacia Semiconductor represents a strong strategic technical fit as well as a perfect synergy with S3’s growth strategy for its mixed signal IP business. S3 is acquiring a skilled engineering team in Acacia as well as a large portfolio of mixed signal IP technology”, said John O’Brien, CEO, Silicon & Software Systems (S3). “Our traditional semiconductor customers are joining their fabless counterparts with fab-lite strategies, opening significant additional markets for S3 products beyond the already rapidly expanding fabless community. This is an exciting time for S3 and we believe that this acquisition solidifies S3’s specialist market leadership position in mixed signal IP, helps us to better address emerging markets such as Next Gen WiFi and Mobile WiMAX and most importantly, assists us in better serving our growing global client base”, concluded O’Brien.

“Acacia is very pleased to become part of a company with the breadth, reputation and scale of S3 and we look forward to continue serving our customer base under S3 and contribute to extending its leadership in this market”, said Bernardo Henriques, co-founder and CEO of Acacia Semiconductor. “Acacia Semiconductor is very proud of its achievements in the analog mixed signal IP market. This acquisition clearly demonstrates the value that we have created in our skilled engineers, our technology and our high performance IP products. S3 is a world leader in this industry and we believe that this deal represents a strong match of the core competencies of both companies. Furthermore we look forward to growing another mixed signal design center in Europe for S3 and recruiting world-class, local and experienced engineering talent as well as the best graduates from the technical universities that exist in Portugal”, added Dr. Henriques.

About Silicon & Software Systems Ltd. (S3)

S3 is the Connected Consumer Technology Company, providing software products, systems knowledge expertise and silicon design for its global client base competing in fast-moving consumer and wireless markets. S3’s technologies, products and professional services enable consumer electronics companies, semiconductors, service providers and healthcare providers to deliver next-generation devices, systems and services to consumers at home and on the move. For IC designers and product managers, S3 delivers a comprehensive portfolio of mixed-signal IP and design services for power-efficient single-chip systems. S3’s 90nm and 65nm SoC customers are repeat users, who benefit from having the confidence to meet tight time-to-market schedules with reduced design risk.

Founded in 1986, S3 has design centers in Ireland (Dublin and Cork) and Central Europe and will now add Portugal as an additional center. S3 is a multinational organization with sales offices and representatives globally. For further information please visit www.s3group.com.

About Acacia Semiconductor

Acacia develops and licenses energy-efficient data converter IP solutions that are critical in a growing number of digital devices and applications for interfacing real-world analog signals with digital data. The company combines an experienced engineering team, innovative design techniques and a proprietary analog design optimization platform to deliver superior IP performance, customization and reuse. The company is based in Caparica, near Lisbon, Portugal. For further information please visit www.acaciasemi.com.