ReShape, Design services startup, Completes $12M Series B Funding with Canaan Partners and NEA

Investors see opportunity in the challenging IC design space

MOUNTAIN VIEW, Calif. - July 24, 2002 -- ReShape, Inc., an integrated circuit (IC) physical design outsourcing company, today announced the completion of its Series B financing. The round was $12 million in cash, which brings the company's total venture financing to $18.5 million since its founding in 1997. Canaan Partners (Rowayton, Connecticut and Menlo Park, Calif.) led the investment, with Series A investor New Enterprise Associates (Menlo Park) participating. Jim Furnivall, general partner of Canaan Partners, joins Mark Perry, general partner at NEA, and Moshe Gavrielov, CEO of Verisity, as outside directors.

ReShape has developed proprietary software that automates the IC building process. ReShape's technology works with IC design tools from Cadence (CDN), Synopsys (SNPS) and others to speed design throughput, improve schedule predictability, and reduce the number of engineers needed on a physical design team. ReShape supports both TSMC and UMC silicon foundries.

"We see a number of start ups and large semiconductor companies struggling to tapeout systems on a chip," said Canaan Partners' Jim Furnivall. "For the most part they complete projects by compromising chip performance and schedules. In contrast, ReShape's technology is aimed directly at bringing performance and predictability back to the chip design process."

David Gregory, ReShape president and CEO added, "We're focused on automating physical design, so that design teams can spend less time on implementation details and instead place their energy on creating strong product differentiation. We're thrilled that both Canaan Partners and NEA have realized the viability of both our technology and our business model."

Reshape has used its technology to complete two high-performance multimedia chips, a 3800 pin switch fabric, and a mixed-signal chip. Current projects include a wireless communication chip, an image processor and two wireline networking chips. Financing proceeds will be used to expand the company's physical design center and advance the technology.

About ReShape
ReShape is a physical design outsourcing company located in Mountain View, Calif. For more information, visit www.reshape.com.

About Canaan Partners
Canaan Partners is a national venture capital investment firm formed in 1987. Canaan specializes in startup and emerging-growth companies in information technology and services, as well as health care and medical technology. Canaan currently manages roughly $2.0 billion in investment capital. For more information, visit www.canaan.com .

About NEA
New Enterprise Associates (NEA), founded in 1978, is a leading venture capital firm investing in start-up companies primarily in information technology, biotechnology and medical and life sciences. With $5 billion under management, NEA's experienced management team has invested in over 500 companies. For additional information, visit www.nea.com .