Virage Logic Announces License Agreement with STMicroelectronics for Embedded Memory IP in 90NM

Agreement Includes Complete Embedded Memory Product Suite From Virage Logic

Fremont, CA - September  10,  2002, Building on a successful alliance with STMicroelectronics with its Area, Speed and Power™ (ASAP) high-density (HD) embedded SRAM memories, Virage Logic Corp. (Nasdaq: VIRL), a global leader in embedded memory, today strengthened its relationship with ST with a multi-year, multi-generation license agreement. Under the terms of the agreement, ST has licensed Virage Logic's entire portfolio of embedded memory technology and embedded software tools for ST's 90-nanometer (nm) and 65-nm technologies, as well as its current 0.13-micron logic process.

Virage Logic will expand its embedded SRAMs, ROMs and non-volatile memory platforms for both 90-nm and future 65-nm products targeted for the 300-mm Crolles II fab in Crolles, France. STMicroelectronics has already successfully taped out 90-nm memory products from Virage Logic.

According to Philippe Magarshack, Central Research and Development group vice president, director of Design Automation at STMicroelectronics, "Embedded memory is rapidly increasing its presence as more and more of our customers move to a system-on-chip (SoC) solution. By expanding our partnership with Virage Logic to include their products into our architectural strategy in current and future technologies, we can better meet market demands faster, which is critical for our high-growth markets."

As the market moves to smaller geometries, leakage current with optimized memory densities are key issues that need to be addressed in using 90-nm and below processes. With Virage Logic's expertise in memory design and architecture, and its proprietary Embed-It!, an embedded memory IP platform, ST can deliver substantial improvements in speed, power reduction, and integration as compared to today's technology. As part of addressing the density issue, both companies agree to collaborate on advanced bit cell development initiatives.

"We are now moving forward to the next level of advanced process technology with ST's proven ability to design and manufacture advanced complex SoC solutions and our expertise in designing and delivering robust embedded memories," said Adam Kablanian, president and CEO at Virage Logic. "Partnering with a semiconductor leader enables us to offer the most cost-effective embedded memory solutions and to facilitate semiconductor designs using forward-looking processes such as 90-nm and 65-nm in the shortest time, enabling customers to create highly differentiated products."

Virage Logic's focus in the embedded memory market is to enable designers to reduce overall system cost and size, while meeting time-to-market requirements by integrating small, moderate or large amounts of on-chip memory. As more memory is added on-chip, obtaining optimal yielding SoC solutions for high-growth applications is achieved through the company's STAR embedded SRAM and ROM solutions, while its NOVeA RAM embedded non-volatile memory cost effectively replaces small to moderate amounts of stand-alone non-volatile memory because it can be manufactured using a standard CMOS process. The ASAP family is ideal for high-volume applications where area-efficient memory implementation is a requirement. In addition, it is optimized for speed, yet consumes less power than other high-speed memories making it an excellent choice for high-performance computing and networking applications.

About Virage Logic

Virage Logic, Corp. (Nasdaq: VIRL) is a global leader in embedded memory. To meet customer design goals with the highest level of quality, Virage Logic products are production tested and optimized for area, power and speed. These products include embedded memory cores, which are critical components of communications, consumer and computer products including switches, routers, modems, cellular phones, set-top boxes, HDTVs, DVD players and PCs. In addition, the company offers software tools and custom memory design services. Virage Logic's customers include fabless semiconductor companies targeting pure-play foundries and semiconductor companies. Founded in January 1996, Virage Logic has over 200 employees and is located at 46501 Landing Pkwy, Fremont, CA 94538. Telephone: (877) 360-6690 (toll free) or (510) 360-8000. Fax: (510) 360-8099.

SAFE HARBOR STATEMENT FOR VIRAGE LOGIC UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

Statements made in this news release other than statements of historical fact are forward-looking statements, including, for example, statements relating to Virage Logic's business outlook, new products and new relationships. Forward-looking statements are subject to a number of known and unknown risks and uncertainties, which might cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include Virage Logic's ability to maintain and develop new relationships with third-party foundries, adoption of technologies by semiconductor companies and increases in the demand for their products, the company's ability to overcome the challenges associated with establishing licensing relationships with semiconductor companies, the company's ability to obtain royalty revenues from customers in addition to license fees, business and economic conditions generally and in the semiconductor industry in particular, competition in the market for embedded memories and other risks including those described in the Company's Annual Report on Form 10-K for the period ended September 30, 2001, filed with the Securities and Exchange Commission (SEC) on December 19, 2001, and in Virage Logic's other periodic reports filed with the SEC, all of which are available from Virage Logic or from the SEC's website (www.sec.gov), and in press releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.