Xilinx Acquires DSP Design Tool Leader AccelChip

Xilinx Takes the Next Step in Bringing Reconfigurable DSPs to Mainstream DSP Designers

SAN JOSE, Calif. -- Jan. 13, 2006 -- Xilinx, Inc. today announced that it has acquired AccelChip, Inc., the leading provider of MATLAB® synthesis software tools for building digital signal processing (DSP) systems. The AccelChip® DSP Synthesis tools and DSP library of algorithmic intellectual property (IP) will be offered as part of Xilinx® XtremeDSP(TM) solutions that include the System Generator for DSP(TM) design tools, rich DSP libraries, and reference designs. This unique combination of DSP technologies enables thousands of DSP algorithm and system designers who use MATLAB and Simulink® (The MathWorks, Inc.) to create high-performance systems using Xilinx reconfigurable DSPs.

Consistent with the DSP strategy and product roadmaps unveiled by Xilinx in October 2005, tools such as those offered by Xilinx and AccelChip accelerate the adoption of application-optimized solutions for digital communications; multimedia, video and imaging (MVI); and defense systems. Together the companies have significant customer overlap and synergy across these market segments, key elements for targeting the $2 billion high-performance DSP market.

Financial terms of the acquisition were not disclosed, however, the acquisition represents less than one percent of the total assets of Xilinx as of the end of its third quarter ended December 31, 2005. The company anticipates booking the acquisition in the March 2006 ending quarter. The majority of AccelChip employees, located at the Company's headquarters in Milpitas, Calif. and two design centers in North America, will become employees within the Xilinx DSP Division.

"AccelChip provides an excellent strategic fit with our existing DSP products and roadmaps," said Omid Tahernia, vice president and general manager for the DSP Division at Xilinx. "The combination of AccelChip and Xilinx System Generator will help accelerate delivery and adoption of our robust, application-optimized solutions by many more DSP developers. We are delighted to welcome the very talented AccelChip team to our DSP Division."

"It is clear that most DSP designers want a design flow that starts with MATLAB and Simulink, and also supports modeling in the C programming language," added Vin Ratford, president and CEO of AccelChip. "The merging of our tools and libraries of DSP algorithms will provide a world-class platform for a host of new DSP applications, and will create new design wins for Xilinx reconfigurable DSP silicon."

Xilinx DSP Strategy

Xilinx's strategy is to deliver application-optimized XtremeDSP solutions on the industry's most compelling performance per dollar reconfigurable DSP using Xilinx programmable devices. The XtremeDSP solutions encompass specialized hardware development platforms, algorithmic libraries, as well as robust design and verification tool suites.

Recent software releases from the two companies continue to enhance the Xilinx-AccelChip DSP solution with a more robust system-to-silicon implementation flow. AccelChip's 2006.1 software release adds automatic generation of C++ verification models from fixed-point MATLAB models, enabling rapid algorithm and architectural design exploration based on performance, power, area, and cost for optimal results. The Xilinx System Generator for DSP 8.1 suite extends its industry-leading hardware co-simulation capability to support high-speed Ethernet (10/100/Gigabit) connectivity, as well as providing significant enhancements in generating DSP co-processors for embedded applications.

Also key to Xilinx's DSP strategy is the coupling of technology leadership with ongoing collaboration involving industry leaders such as Texas Instruments and The MathWorks Inc. The acquisition of AccelChip builds on key elements of the strategy, allowing the Company to leverage proven co-processing solutions that integrate MATLAB and Simulink with industry standard hardware design flows from Cadence, Mentor Graphics, Synplicity, and Synopsys. AccelChip customers can also expect continued support as well as a transition path to future tool and library offerings.

About AccelChip, Inc.

AccelChip Inc. is the industry's only provider of MATLAB-based algorithmic synthesis solutions, including its DSP library of algorithmic IP. The Company was founded in 2000, and is located in Milpitas, California, and has design centers in Portland, Oregon, and Carlsbad, California. AccelChip's Web address is www.accelchip.com.

About Xilinx

Xilinx is the worldwide leader in complete programmable logic solutions. For more information, visit www.xilinx.com.