NEC Electronics Selects Virage Logic Embedded Memories

Virage Logic Products to Reduce Costs, Drive Innovation

Tokyo, Japan and Fremont, Calif. - February  5,  2003, Virage Logic Corp. (Nasdaq:VIRL), a leading provider of best-in-class application-optimized semiconductor IP platforms, today announced it has signed a licensing agreement with NEC Electronics Corp. for Virage Logic's embedded memories. The licensing agreement gives NEC access to a wide range of Virage Logic products including the STAR Memory System™ with integrated self-test and repair; and ASAP Memory™ embedded SRAM optimized for area, speed and power. NEC intends to use this IP in the development of next-generation semiconductor products on its 0.13m process technology.

Virage Logic's silicon-proven embedded memories can be rapidly integrated into NEC's design engineering and wafer fabrication operations, providing advanced memory capabilities for NEC's broad lineup of semiconductor products. These products will be offered as platform solutions for NEC's customers, as well as for internal system solutions for products such as mobile handsets, PC peripherals, automotive and digital consumer products. Components using Virage Logic memories will also be integrated farther up the vertical chain in NEC's technology solutions targeting high-end servers and networks.

"Virage Logic's application-optimized embedded memories enhance our ability to react quickly to the changing demands of our customers and the marketplace," said Kazuyoshi Yamada, general manager, Technology Foundation Development Division, NEC Electronics Corporation. "Our agreement with Virage Logic will help us to continue building on our strengths as a leading global provider of technology solutions."

"NEC is revolutionizing the integrated device manufacturer (IDM) model by combining strong vertical integration with leading-edge semiconductor IP from both internal and external sources," said Adam Kablanian, president and CEO, Virage Logic. "With this comprehensive licensing agreement, Virage Logic IP technologies will be incorporated into a range of innovative products designed with NEC's extensive system knowledge and distributed via NEC's expansive global sales network."

About Virage Logic Embedded Memories
Under the licensing agreement with Virage Logic, NEC will have access to several key product families in the Virage Logic portfolio of semiconductor IP including: 

• STAR Memory System: by integrating self-test and repair functionality directly onto the chip, the STAR Memory System enables substantially larger amounts of SRAM to be integrated onto System-on-Chip (SoC) devices. The STAR Memory system enables significant cost savings by eliminating the need for expensive test equipment and delivering higher yields during manufacturing. NEC will license the Single Port High Density 8Mb and the Dual Port High Density 512Kb SRAM products.
• ASAP Memory: ASAP SRAM memories are individually optimized for area, speed, or power. NEC will license the ASAP Memory Dual Port High Speed SRAM, and the ASAP Memory Dual Port High Density SRAM products.

About Virage Logic
Virage Logic (Nasdaq: VIRL) is a leading provider of best-in-class application-optimized semiconductor IP platforms based on memory, logic, I/Os and IP development tools that are silicon proven and production ready. Virage Logic meets market demands for cost reduction, while improving performance and reliability for fabless and integrated device manufacturer (IDM) companies focused on the consumer, communications and networking, hand held and portable, and graphics markets. For more information, visit www.viragelogic.com or call (877) 360-6690 (toll free) or (510) 360-8000. Virage Logic's Tokyo, Japan office can be reached by calling +81-3-5403-4751.

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, 2002, filed with the Securities and Exchange Commission (SEC) on December 16, 2002, 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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