Virage Logic Establishes Semiconductor IP Platforms to Address the Needs of the SOC Market

Application-Optimized Platforms Deliver Customized Solutions That Reduce Costs and Boost Performance

Fremont, CA - October  21,  2002, The semiconductor Intellectual Property (IP) market is rapidly evolving, driven by trends such as increased silicon manufacturing outsourcing, increased competitiveness in all market segments and the widening gap between technology capabilities and design productivity. Recognizing this transition, Virage Logic (Nasdaq:VIRL), known as a leader in embedded memory and one of the industry's fastest growing IP providers, today announced its strategic move to deliver highly optimized semiconductor IP platforms. Virage Logic's platform strategy is based on delivering best-in-class memory, logic, I/O and design tools to meet the critical requirements of reducing costs while boosting performance and ensuring reliability.

Although 0.13-micron and 90 nanometer (nm) logic processes provide numerous advantages, they also bring rising non-recurring engineering (NRE) costs such as mask costs, increased manufacturing time, and yield and reliability problems. With the trend to reduce the number of chips in a system and the move towards a System-on-Chip (SoC) design methodology that causes chip sizes to increase, many companies are aggressively seeking ways to reduce the cost of silicon.

"Virage Logic's platform-based approach to semiconductor IP demonstrates their understanding of market needs, including the need to reduce SoC development costs," said Jerry Worchel, senior analyst, In-Stat/MDR. "In particular, their new metal programmable technology will help drive mask costs down, reduce cycle time, as well as increase design flexibility, which is critical as processes shrink to 90nm and below."

"New technologies, vertical market requirements and ever shorter time-to-market demands dictate the change from generic IP to optimized semiconductor IP platforms," said Adam Kablanian, CEO and president, Virage Logic. "Our customized, application-optimized semiconductor IP platforms enable customers to address the specific characteristics and requirements of their market segment. Whether it is consumer, communications and networking, graphics, or portable and handheld, the platform provides a customized portfolio of individual products grounded in advanced technology that meet our customer's specific requirements."

ASAP Logic™ Product Line Now Available
Concurrent with this announcement, Virage Logic debuts its ASAP Logic product line, which initially offers the ASAP HS Metal Programmable Cell Library and the ASAP HD Standard Cell Library. Silicon proven on a variety of process geometries (0.25um, 0.18um, 0.13um) at leading integrated device manufacturers (IDMs), the ASAP Logic products are being first introduced to fabless semiconductor customers on TSMC's 0.13-micron logic process. (Please see the press release entitled, "Virage Logic Introduces ASAP Logic Product Line" dated October 21, 2002).

About Virage Logic
Virage Logic (Nasdaq: VIRL) is a global leader in embedded memory IP. 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. The company's customers include ASIC/custom SoC designers, fabless semiconductor companies targeting pure-play foundries, and semiconductor companies. Founded in January 1996, the company has over 280 employees and is located at 47100 Bayside Parkway, Fremont, Calif., 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.

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