MIPS Technologies Announces New Licensing Agreement with PMC-Sierra for a Broad Range of MIPS(R) Cores

Entry-level to Multi-threaded, Multi-core Solutions Provide Diverse Options for Next-generation Designs

MOUNTAIN VIEW, Calif. -- July 22, 2008 -- MIPS Technologies, Inc. , a leading provider of industry-standard architectures, processors and analog IP for digital consumer, home networking, wireless, communications and business applications, today announced that long- time licensee PMC-Sierra has licensed a broad range of MIPS® cores for its next-generation communications and storage solutions. Included in the agreement are MIPS Technologies' highest performance single-threaded cores, multi-threaded cores, and its new multi-threaded, multiprocessor IP core, the MIPS32® 1004K(TM) Coherent Processing System. The code-compatible cores offer scalable solutions from entry-level designs to 1 GHz and beyond.

"MIPS Technologies has long played a role in PMC-Sierra's development of leading-edge infrastructure solutions, and now we have even greater choice for future generations," said Robert Yung, vice president, chief technology officer, PMC-Sierra. "In addition, MIPS Technologies' new 1004K multi-threaded multi-core platform offers significant performance increases we can deliver through this new technology. The performance, power and cost benefits in MIPS Technologies' cores, supported by their development tools, will enable us to offer our customers clear competitive advantages."

"PMC-Sierra is widely recognized as a leading provider of networking and storage infrastructure solutions," said Brad Holtzinger, vice president of worldwide sales at MIPS Technologies. "Our relationship with PMC-Sierra as a close partner and long-time licensee continues to help them deliver innovative products across multiple markets."

PMC-Sierra licensed a broad selection of industry-leading MIPS32 processor technologies:

• 1004K Core -- the industry's first multi-threaded multiprocessor IP core. Multi-threading in each core within a coherent multi-core architecture of one to four cores, enables the 1004K core to surpass the performance of multi-core systems based on single-threaded processor cores.

• MIPS32® 74Kc(TM) Core -- the industry's first fully synthesizable processors to surpass 1 GHz using industry standard libraries and EDA flows, based on MIPS Technologies' superscalar microarchitecture with out-of-order instruction dispatch and incorporating the MIPS DSP Application Specific Extension (ASE).

• MIPS32® 34Kc(TM) Pro Core -- The first MIPS cores to exploit multi- threading for embedded applications, the 34Kc core delivers significant gains in system performance and cost savings, with a very modest increase in die size.

• MIPS32® 24Kc(TM) Pro Core -- Low-power 24Kc cores offer 700 MHz worst- case performance in a 65nm process, and offer the best combination of performance, power and density of any midrange synthesizable CPU in the industry. They are ideal for home entertainment applications as well as portable, battery-powered consumer devices.

• MIPS32® 4KEm(TM) Pro Core -- These highly-configurable cores offer SoC designers a tailored solution for high-performance, low-power consumer applications, with the flexibility to optimize applications by maximizing performance or minimizing power consumption.

• MIPS® SOC-it® L2 Cache Controller -- Designed to minimize memory latency, reducing system costs and power consumption. Fully synthesizable, it works seamlessly with all MIPS Technologies' cores and uses standard cell libraries and memory arrays.

• Pro Series® cores offer unprecedented value by enabling SoC designers to write their own instruction set extensions and create highly differentiated, highly competitive products. Using standard tools and software, designers can implement instruction extensions to significantly increase performance, reduce power consumption, implement critical operations and more.

About PMC-Sierra

PMC-Sierra(TM) is a leading provider of broadband communications and storage semiconductors for metro, access, fiber to the home, wireless infrastructure, storage, laser printers, and fiber access gateway equipment. PMC-Sierra offers worldwide technical and sales support, including a network of offices throughout North America, Europe, Israel and Asia. The company is publicly traded on the NASDAQ Stock Market under the PMCS symbol. For more information, visit http://www.pmc-sierra.com.

About MIPS Technologies, Inc.

MIPS Technologies, Inc. (NasdaqGS: MIPS - News) is the world's second largest semiconductor design IP company and the number one analog IP company worldwide. With more than 250 customers around the globe, MIPS Technologies is the only company that provides a combined portfolio of processors, analog IP and software tools for the embedded market. The company powers some of the world's most popular products for the digital entertainment, home networking, wireless, and portable media markets-including broadband devices from Linksys, DTVs and digital consumer devices from Sony, DVD recordable devices from Pioneer, digital set-top boxes from Motorola, network routers from Cisco, 32- bit microcontrollers from Microchip Technology and laser printers from Hewlett-Packard. Founded in 1998, MIPS Technologies is headquartered in Mountain View, California, with offices worldwide. For more information, contact (650) 567-5000 or visit http://www.mips.com.