MIPS Technologies and Microware Team Up to Provide Superior Digital Entertainment Technology

Companies Provide Complete DTV Application Development Solution

DES MOINES, Iowa and MOUNTAIN VIEW, Calif.----April 20, 2000-- MIPS Technologies, Inc. and Microware Systems Corporation announced today a cooperative agreement in which Microware will provide its OS-9® real-time embedded operating system (RTOS) product suite optimized for 32-bit and 64-bit MIPS-based processors. Microware will offer a complete development package for digital entertainment applications on the MIPS RISC architecture, providing superior digital technology to OEMs desiring fast, innovative, reliable design development.

``If a product developer needs a high-performance solution that includes a MIPS32(TM) or MIPS64(TM) based design, a proven embedded operating system, development tools, robust graphic platform, and a sophisticated communications framework for digital entertainment, the Microware solution is available with the components needed for rapid application development,'' said Brian Knowles, vice president of marketing at MIPS Technologies.

MIPS Technologies designs and licenses high-performance 32- and 64-bit architecture, soft cores, and hard cores for embedded processors. MIPS-based(TM) processors power more than 70 percent of digital entertainment devices such as HDTVs, digital set-top boxes, personal video recorders, and game consoles, according to market research done by Semico Research Corporation (Phoenix, Ariz.). Microware provides embedded software solutions that include its OS-9® real-time embedded operating system (RTOS), HAWK(TM) Integrated Development Environment, DAVID® (Digital Audio/Video Interactive Decoder) digital television solution, and consulting services. The agreement calls for Microware to support both MIPS32 and MIPS64 processor architectures. The software will be offered on a MIPS Technologies Atlas reference board first, with planned support for other reference boards to follow.

MIPS Technologies processor IP (intellectual property) powers many popular devices, including the Sony PlayStation® 2 Game Console, satellite-disk systems for television, and digital television set-top boxes. This market focus is complemented by Microware's extensive experience in digital entertainment and Internet-ready devices. According to the research firm International Data Corporation (Mountain View, Calif.), the market for digital consumer electronic devices, which includes Internet gaming consoles and digital televisions with Internet access, will reach $17.8 billion by 2004, up from $2.4 billion in 1999.

``MIPS Technologies is the industry's performance leader in embedded 32- and 64-bit processor architectures and cores and they have strong relationships with the world's leading semiconductor manufacturers,'' said Ken Kaplan, president and chief executive officer of Microware. ``Their value proposition to developers is exactly in sync with ours: by using MIPS Technologies processor IP, device developers save an enormous amount of time and eliminate just as much frustration. Their commercially developed embedded processor designs and our embedded solutions are a fast track to digital entertainment product development.''

``Microware is a welcomed participant of the MIPS Alliance Program,'' Knowles said. ``They have a high-performance digital TV technology solution that complements MIPS Technologies' digital entertainment vertical market strategy. Microware's expertise and experience is well aligned with our goal to provide our customers with a rapid deployment development environment for digital entertainment systems.''

In addition to its OS-9 RTOS, Microware will also include its DAVID (Digital Audio/Video Interactive Decoder) digital television solution. DAVID was the first embedded software platform to use Sun Microsystems' Java(TM) technology, providing an easy-to-use solution for digital connectivity. Microware's embedded solutions support digital broadcast standards in the U.S., Europe and other parts of the world.

About MIPS Technologies, Inc.

MIPS Technologies, Inc. is one of the world's primary architects of embedded 32- and 64-bit RISC processors. 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 Microprocessor Design Group (Cadence); 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(TM) intellectual property. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at 650-567-5000 or http://www.mips.com.

About Microware Systems Corporation

Microware Systems Corporation provides embedded solutions for successful products. The solutions include development tools such as integrated development environments, software components such as the OS-9® real-time operating system, and consulting services. Microware software is used in internet appliances, consumer electronics, wireless communication devices, industrial automation, office automation, automotive control, digital television, telecommunications, and multimedia devices, representing many of the fastest-growing areas in worldwide technology. Founded in 1977, Microware is headquartered in Des Moines, Iowa, with offices throughout the United States, Europe, and Japan. For more information, visit www.microware.com, send e-mail to info@microware.com, or call 1-800-475-9000 or 515-223-8000.

Cautionary note: This press release may contain certain statements of a forward-looking nature relating to future events or future business performance. Any such statements that refer to Microware's estimated or anticipated future results, product performance or other non-historical facts are forward looking and reflect Microware's current perspective of existing trends and information. These statements involve risks and uncertainties that cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements.

Such risks and uncertainties include, among other things, the historical volatility in the Company's quarterly performance; growth of markets at which the Company's products are targeted; the Company's dependence on its strategic customers' successful deployment, marketing, and sales of new products targeted at those markets; and other factors detailed in the Company's history of past losses and filings with the Securities and Exchange Commission. These statements speak as of the date of this release, and the Company undertakes no obligation to update these statements in light of future events or otherwise.

MIPS is a registered trademark and MIPS32, MIPS64 and MIPS-based are trademarks of MIPS Technologies, Inc. Microware, the Microware logo, DAVID, and OS-9 are registered trademarks of Microware Systems Corporation. HAWK and MAUI are trademarks of Microware Systems Corporation.

All other company and product names mentioned are used for identification purposes only, and may be trademarks of their respective owners.

Contact:
     Microware, Des Moines
     Christine Miller
     (515) 327-2449
     christinem@microware.com
     or
     Constance Sweeney
     MIPS Technologies, Inc.
     (650) 567-5059
     cks@mips.com
     or
     Joshua Schneck
     Snow Communications
     (612) 337-0748
     jschneck@cybersnow.com