IBM and Candence team to accelerate use of advanced technologies in chip designs

EAST FISHKILL, NY, August 21, 2002 - IBM and Cadence Design Systems, Inc. today announced they are working together to closely integrate Cadence's Design Foundry capabilities with IBM's advanced manufacturing technologies.

The two companies intend to help customers enhance new chip designs by providing a complimentary set of intellectual property (IP), design skills and advanced manufacturing services. IBM's relationship with Cadence is part of a strategy to make IBM's most advanced chip-making technology available through high-volume chip manufacturing services.

"Chip designers are looking to advanced technologies to provide their products with a competitive advantage," said Mike Concannon, vice president of contract manufacturing services for the IBM Microelectronics Division. "Customers are recognizing that our technology can do much more for their products than what traditional foundries are able to provide. Working with major design services providers like Cadence can help customers more easily tap into that technology for their chip designs."

Cadence Design Foundry will design chips utilizing its own cores, IBM's cores, various third party libraries and industry standard design tools, with the final design optimized for manufacture using IBM's leading chip-making processes.

"We are very pleased to be working with IBM to optimize our design attributes with IBM's latest technologies," said Jim Douglas, vice president of sales and marketing, Cadence. "We believe IBM's leading process and high-volume manufacturing capabilities, combined with the expertise of Cadence's Design Foundry, position both companies for continued success in the advanced semiconductor marketplace."

More information about Cadence can be found at: http://www.cadence.com

More information about IBM Microelectronics can be found at: http://www.ibm.com/chips