Philips Semiconductors licenses MIPS Technologies' 64-Bit core in multimillion dollar deal for use in advanced digital consumer applications

PHILIPS SEMICONDUCTORS LICENSES MIPS TECHNOLOGIES' 64-BIT CORE IN MULTIMILLION DOLLAR DEAL FOR USE IN ADVANCED DIGITAL CONSUMER APPLICATIONS

Philips Semiconductors Standardizes on the MIPS Architecture
for its Digital Consumer Applications

MOUNTAIN VIEW, California, USA and EINDHOVEN, the Netherlands -- July 18, 2000 -- MIPS Technologies, Inc. (NASDAQ:MIPS,MIPSB), a leading provider of industry standard processor architectures and cores for digital consumer and network applications, and Philips Semiconductors, an affiliate of Royal Philips Electronics (NYSE:PHG), today announced a multimillion dollar deal in which Philips Semiconductors has acquired a license for the MIPS64 20Kc 64-bit processor core and the MIPS32 and MIPS64 32- and 64-bit architectures. Philips Semiconductors will use the new processor technology in its Nexperia^? platforms that are used to create its complete system-on-a-chip solutions.

"Our Nexperia platform approach is fundamental to almost every aspect of our business," said Theo Claasen, Chief Technology Officer at Philips Semiconductors, "and a key part of this is our use of the MIPS^® architecture for the Nexperia Digital Video Platform. This new agreement extends our existing license with MIPS Technologies to include the MIPS64 20Kc^? processor core, which was announced at the recent Embedded Processor Forum on June 12^th, 2000. It is an advanced, powerful, licensable 64-bit core that will enable us to create innovative products for the digital consumer market. For example, the next generation of set-top boxes that we are designing need the advanced processing power of the MIPS64 20Kc to run the sophisticated software programs that provide features such as interactivity, 3D graphics, and intuitive user interfaces. In addition, we have taken 32-bit and 64-bit architecture licenses. This enables us to get right into the heart of the MIPS architecture to fine tune and customise it to create specific solutions that are highly tailored to suit various Nexperia platforms such as the Nexperia Digital Video Platform or the Nexperia Car Infotainment Platform.?

John Hall, MIPS Technologies? Vice President of European operations, commented: ?We are delighted that Philips Semiconductors has decided to make such a major commitment to the MIPS architecture. Philips Semiconductors is one of our longest established licensees and has one of the most experienced teams of designers working in the MIPS environment, who have already created a lot of innovative MIPS-based products. Taking ISA licenses will empower this team to be even more creative.?

John Bourgoin, Chairman and CEO of MIPS Technologies, added: ?The Philips Semiconductors commitment to advanced MIPS-based? products further affirms our position as the leading provider of flexible and powerful microprocessor architectures and designs. Philips Semiconductors has considerable knowledge of the requirements for advanced System on Chip needs as well as the full range of processor options for that market and has chosen the MIPS architecture. I am particularly pleased that Philips Semiconductors has chosen the MIPS64 20Kc core, the highest performing core available for licensing, to serve their high performance requirements. In addition, with the MIPS32 and MIPS64 ISA licenses, their teams can apply their considerable innovative skills to the full range of MIPS processor architectures.?

According to Semico Research, MIPS Technologies? designs are currently used in 70% of digital entertainment devices.

About Philips Semiconductors
Philips Semiconductors, which has annual revenues of approximately $5 billion, designs and manufactures semiconductors and silicon systems platforms. Philips Semiconductors is spearheading the emerging field of systems on silicon solutions with the innovative Nexperia? platform and VLSI Velocity? tool set. The company?s Sea-of-IP? design methodology allows plug and play intellectual property blocks for easily customizable products. The company is a leader in communications, consumer, PC peripherals and automotive semiconductors, which are key applications for convergence in end-user products. Philips Semiconductors is headquartered in Eindhoven, The Netherlands, and has operations throughout the world. For more information, please see www.philips.semiconductors.com

About MIPS Technologies, Inc.
MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and network applications. 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.
Licensees currently include: Alchemy Semiconductor, Inc.; Altera Corporation; ATI Technologies, Inc.; Broadcom Corporation; Centillium Communications, Inc.; Chartered Semiconductor Manufacturing; CommQuest (IBM); ESS Technology, Inc.; Excess Bandwidth; General Instrument Corporation; Integrated Device Technology, Inc. (IDT); Lara Networks, Inc.; LSI Logic Corporation; Macronix; Metalink Ltd.; NEC Corporation; NKK Corporation; Philips Semiconductors; Quantum Effect Devices, Inc. (QED); QuickLogic Corporation; Sandcraft, Inc.; SiByte, Inc.; Sony Corporation; Synova; Texas Instruments Incorporated; Toshiba Corporation; and Taiwan Semiconductor Manufacturing Company. Numerous companies utilize MIPS-based intellectual property. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at +1 650-567-5000 or http://www.mips.com.

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MIPS is a registered trademark and MIPS-based, MIPS32, MIPS64 and MIPS64 20Kc are trademarks of MIPS Technologies, Inc. Nexperia is a trademark of Philips Electronics. All other trademarks are the property of their respective companies.

Please direct MIPS Technologies sales inquiries to: Martin Kingdom, MIPS Technologies, Windmill Business Park, Whitehill Way, Swindon, Wiltshire, UK SN5 6QR. Tel +44 1793 441 470. Fax +44 1793 441 570. Email: eurosales@mips.com

Media Contact:

MIPS Technologies, Inc.
Constance Sweeney,
+1 650-567-5059
cks@mips.com

Account Director for MIPS Technologies in Europe

Nigel Robson
Vortex PR
+44 1481 233080 (UK)
nigel@vortexpr.com