CPU Technology, Inc. to modernize critical legacy system

Pleasanton, CA – July 1, 2003 – CPU Technology, Inc. (www.cputech.com) today announced that it is going to apply its commercial SoC (System-on-a-Chip) technology to modernize a critical component for the Integrated Warfare Systems Organization of the U.S. Navy. CPU Tech is developing a replacement digital signal processor for the guidance section computer of the STANDARD Missile 2 Block IIIB missile, a primary ship defense weapon system of the U.S. Navy and several allied countries.

This effort is focused on solving the component obsolescence problem of STANDARD Missile guidance section computers. Our SoC technology will also provide a secondary benefit of potentially increasing capability and reliability to the STANDARD Missile," stated Gail Walters, Chief Business Officer of CPU Tech.

CPU Tech is working with Raytheon Missile Systems of Tucson, AZ, who is the original equipment manufacturer of the STANDARD Missile.

Combining CPU Tech's commercial SoC Technology with Raytheon's missile expertise gives us the best of both worlds" said Captain Mick Outten, the Navy Program Director for the Integrated Warfare Systems. "Integrating CPU Tech SoC gives us access to the latest commercial technology economically. CPU Tech's unique approach to SoC solves the obsolescence problems that continually plague these large complex systems."

About CPU Technology, Inc.

CPU Technology, Inc. develops compatible, next generation solutions for the high-end market. The company has created patented automated electronic system design and verification technology and methods that radically reduce the cost and time required to bring next generation technology to high end system designs. Through the application of System-on-a-Chip technology, CPU Tech reduces system size, weight and power usage while dramatically reducing the number of components in the system and eliminating reliance on components that are or may become obsolete. Cost-effective modernization processes improve reliability, ensure long-term availability and support, improve functionality and preserve the customer's investment in valuable software. CPU Tech is a privately held company founded in 1989. It is headquartered in Pleasanton, California and has offices in Reston, VA and Layton, UT. The Carlyle Group holds an equity position in the company. Additional information can be found at www.cputech.com.