Cadence Aligns Design Business with EDA Leadership

Tality Returns to Cadence to "Lead By Design", Fostering Technology Innovation and Strengthening Customer Focus

San Jose, CA. - June 27, 2002 - Cadence Design Systems, Inc., the world's leading supplier of electronic design products and services, today unveiled its strategy to leverage leading-edge design as a key competitive advantage for its customers and its core electronic design software business. Tality, the Cadence design services subsidiary, will return to Cadence and team with the SoC Design Foundry acquired today with Simplex Solutions. This new Design Foundry® business unit will focus on high-end digital, analog and mixed-signal IC design in close conjunction with Cadence technology development groups. By establishing close cooperation and feedback between a focused, premier design organization and its software engineering teams, Cadence expects to further strengthen both customer relationships and the technology and products behind its solutions for electronic design.

"This organizational shift is driven by customer requirements as well as market forces," said Ray Bingham, president and CEO of Cadence. "Over the last five years, we have learned that it is strategically important to our customers that we understand design, offer expert design services, and use our design teams to ‘Lead by Design.' This enables us to direct innovation in Cadence software technology to better serve our customers' next-generation design needs. However, as a result of the dramatic changes in our customers' markets, a separate, volume design-services business is no longer our goal."

"With this understanding, I have chartered my team to focus our strategy, and to strengthen our financials as a result", concluded Bingham.

"Our strategic intent is to align our leadership design capability with technology development" explained Penny Herscher, executive vice president and chief marketing officer at Cadence. "When we do this, our customers benefit in three key ways. First, by engaging our design services, our customers can directly leverage our expertise in high-end digital, analog and mixed-signal design to improve their time-to-product through 1st Silicon Success®. Second, our customers demand battle-tested solutions, and our tools improve faster when our developers receive immediate feedback from an internal design group. Third, our advanced design group will give us early insight into the most pressing needs of the design community and help to drive and focus our development programs. This is what we mean by ‘Leading by Design.'"

The new Cadence Design Foundry business unit will be headed by Aurangzeb Khan, former head of Simplex's SoC Design Foundry business, the team known for its unbroken track record of 1st Silicon Success, including the Sony Playstation®2 Graphics Synthesizer® and the world's first OC768 framer-mapper processor for Infineon. Khan, now Cadence corporate vice president and general manager reporting to Herscher, was president and CEO of Altius Solutions, Inc. (acquired by Simplex in 2000). He has over 16 years of management experience and over 22 years of product development experience. Before founding Altius, Khan was the vice president of silicon engineering at Cirrus Logic and the director of VLSI technology and CAD development at Tandem Computers.

Tality's IC design teams have delivered hundreds of complex SoC designs, some with up to 15 million gates and many targeting advanced 0.13-micron and beyond technologies. These include the world's first single-chip OLED SVGA micro display created for eMagin, winner of the Electronic Products 2001 Product-of-the Year Award. "I am honored to have the opportunity to bring the ‘Leading by Design' strategy to Cadence with the new Cadence Design Foundry business unit", said Kahn. "Our combined organizations offer a unique concentration of engineering excellence in the areas critical to high-end SoC design. I look forward to working with this incredibly talented team to enable our customers to achieve first-to-market and first-to-volume success in their competitive markets".

Cadence plans to integrate the former Tality sales teams with the Cadence channel to better serve Cadence customers, and to divest select portions of Tality's systems-design service business to focus on profitability and IC design practices. The new Cadence Design Foundry business unit will use design flows based on Cadence software technology, as well as the best point tools from other EDA suppliers. This is in alignment with the Cadence commitment to build the best solutions for its customers and foster an open industry based on interoperability.

About Cadence
Cadence is the largest supplier of electronic design technologies, methodology services, and design services. Cadence solutions are used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronics-based products. IEEE, the world's largest technical professional society, honored Cadence with its 2002 Corporate Innovation Recognition award. With approximately 5,600 employees and 2001 revenues of approximately $1.4 billion, Cadence has sales offices, design centers, and research facilities around the world. The company is headquartered in San Jose, Calif., and traded on the New York Stock Exchange under the symbol CDN. More information about the company, its products and services are available at www.cadence.com.