Atmos Corporation closes $US 10 million investment round; Virage Logic leads investors

ATMOS CORPORATION CLOSES $US 10 MILLION INVESTMENT ROUND; VIRAGE LOGIC LEADS INVESTORS

09 July 2001 - Kanata, Ontario, Canada - ATMOS Corporation, a premier provider of embedded memory solutions to companies that implement system-on-a-chip (SoC) applications, today announced the close of a $US 10 million round of financing. This round was led by investor Virage Logic Corporation (Nasdaq: VIRL) with $US 5 million. MOSAID Technologies Inc. (TSE: MSD), Ventures West, BDC Venture Capital and Eastern Technology Seed Investment Fund (ETSIF), all earlier investors in ATMOS, also participated in this round.

The investment enables ATMOS to accelerate its product and market development to provide SoC and integrated circuit (IC) designers access to the ATMOS family of embedded dynamic random access memory (DRAM) products and associated electronic design automation (EDA) tools. This includes ATMOS SoC-RAM memory cores and web-based compiler software.

ATMOS targets the growing market for high-density SoC embedded memory. Network communications equipment, Internet and consumer devices all rely on SoCs for the small-area, high-speed, low-power memory capability required by next-generation products. Embedded memory is a crucial component of SoCs, providing the data storage and retrieval for all other on-chip functions, and the SIA/ITRS estimates that memory will become the most dominant part of SoCs by 2002 (source: Semiconductor Industry Association. International Technology Roadmap for Semiconductors, 2000 Update edition. International SEMATECH:Austin, TX).

"To meet their system performance requirements, SoC designers are embedding more and larger memory instances into their designs," said Adam Kablanian, President and CEO of Virage Logic. "We believe this investment enables Virage Logic to further its commitment to embedded memory development. We are capturing the industry trend toward increasing chip integration and larger memory instances on-chip."

"This investment round validates the market interest in pursuing embedded DRAM product technology for use in next-generation applications," said Paul Slaby, President and CEO of ATMOS. "The funding supports our work in leading embedded DRAM product development for new products, markets and web-based design of systems on chips."

About ATMOS
ATMOS Corporation is a semiconductor memory company that focuses on creating embedded memory solutions for system-on-a-chip (SoC) applications. ATMOS offers silicon-proven memory cores to customers in the networking, wireless, graphics and imaging industries that require very large on-chip memory. For more information, visit www.atmoscorp.com or call toll-free 866.EMB.DRAM.

About Virage Logic
Virage Logic Corporation (NASDAQ: VIRL) is a technology and market 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 November 1996, Virage Logic has over 150 employees and is located at 46501 Landing Pkwy., Fremont, Calif., 94538. For more information, please visit www.viragelogic.com.

About MOSAID
MOSAID Technologies Incorporated is an independent semiconductor company operating through three divisions. MOSAID's Semiconductor Division is a fabless provider of networking chips for the communications market. MOSAID's Intellectual Property Division is a licensor of intellectual property to semiconductor manufacturers worldwide. MOSAID's Systems Division is the leading supplier of engineering memory test and analysis systems to memory manufacturers around the world. For more information, visit www.mosaid.com.

About Ventures West
Ventures West is a private, professional, venture capital management group managing over $400 million in risk capital. Established in 1968, Ventures West is one of Canada's preeminent technology organizations investing in young technology companies across Canada from offices in Vancouver, Toronto and Ottawa. Ventures West's investment focus is on companies in the biotechnology, information technology, telecommunications and energy technology sectors. For more information, visit www.ventureswest.com.

About BDC Venture Capital
BDC Venture Capital has been involved in venture capital since 1975 and currently manages over $450 million in venture capital assets with over 120 investee companies. BDC's professionals in biotechnology, information technology, telecommunications and energy technology sectors have hands-on experience and can assist companies at every stage of development, from seed stage through expansion. For more information, visit www.bdc.ca.

About ETSIF
The Eastern Technology Seed Investment Fund is a joint initiative of Ventures West, Bank of Montreal Capital Corporation and BDC. Managed by Ventures West, ETSIF focuses on seed stage opportunities in emerging Canadian technology companies. With 20 companies in its portfolio ETSIF is now fully invested but Ventures West and the BDC are still active in seed stage investments. For more information, visit www.ventureswest.com or www.bdc.ca.

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