MIPS Technologies, Inc. Announces Second Quarter Pro Forma Earnings from Operations Will Be In Line With Earlier Guidance

The Company to Take a One Time Charge for In Process R&D

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Jan. 2, 2002-- MIPS Technologies, Inc., (Nasdaq:MIPS - news; Nasdaq:MIPSB - news) a leading provider of industry standard processor architectures and cores for digital consumer and business products, today announced that pro forma operating results for the fiscal second quarter ending December 31, 2001 is anticipated to be a net loss per share of $0.05 before a one time charge for acquired in process research and development costs. The expected results are in line with guidance provided at the beginning of the quarter and meets analysts' current consensus expectations.

As a result of its acquisition of the Lexra processor IP assets announced late last week, MIPS Technologies expects to record a one time charge for acquired in process R&D of approximately $2.0 million in the December 31, 2001 quarter which will be discussed further during the second quarter earnings call.

MIPS Technologies will report results for the second quarter of fiscal 2002 on January 15, 2002 after the close of the market. The company invites you to listen to management's discussion of Q2 results and Q3 outlook and guidance in a conference call live on January 15, 2002 beginning at 2:00 p.m. Pacific. Conference call number is 913/981-5592. Replay number is 719/457-0820 and will be available for 5 days, beginning shortly after the end of the conference call. The access code is 429875.

About MIPS Technologies, Inc.

MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and business products. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers, and system OEMs. MIPS Technologies, Inc. and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at 650/567-5000 or www.mips.com.