Atmel and Virage Logic grow partnership for 0.13-micron SoC Designs

Silicon-Proven, High-Quality IP Delivers Value and Fast Time-to-Market

FREMONT, Calif. -- Jan. 21, 2003 -- Building on a successful alliance with Atmel (Nasdaq: ATML), Virage Logic Corp. (Nasdaq: VIRL), a leading provider of best-in-class application- optimized semiconductor IP platforms, today strengthened that relationship by expanding its license agreement to include the company's Area, Speed and Power (ASAP) MemoryTM product line on the .13-micron process.

Under the terms of the agreement, Atmel will license Virage Logic's ASAP Memory High Density (HD) embedded memories. Atmel will use Virage Logic's HD embedded memories to gain key advantages in area and performance for products aimed at such growth markets as telecom, computer peripherals, digital consumer devices, automotive, communications and smart cards. The high density embedded memories will be for general use by Atmel's internal design teams in both North America and Europe.

"As more designers adopt next-generation programmable SoC solutions for products that are smaller, smarter and less expensive, it is imperative that we partner with leading companies that deliver superior technology," said Bernard Pruniaux, vice president and general manager ASIC Business Unit, Atmel. "By partnering with Virage Logic, we have access to superior embedded memory IP. It's ideal for high-volume applications that require an area-efficient, low power implementation."

"Partnering with Atmel, a worldwide leader in the design, manufacturing and marketing of advanced semiconductors, will enable us to reach into new market segments," said Adam Kablanian, CEO and president, Virage Logic. "We look forward to extending our broad product portfolio with Atmel and to enable new technology that cost-effectively addresses the manufacturing requirements of Atmel's customers."

The ASAP Memory Product Line
Virage Logic embedded memories are developed using memory design techniques that achieve unprecedented results in yield, area, speed and power. The ASAP Memory product line consists of three families:

High Density (HD): Superior for high-volume applications, HD is optimized for area. The HD product is available as Single Port SRAMs, Dual Port SRAMs, 1-Port Register Files, 2-Port Register Files, and ROMs. High Speed (HS): Superior for high-performance computing and networking applications, HS is optimized for speed, yet consumes lower power than other HS memories. The HS product is available as Single Port SRAMs, Dual Port SRAMs, and Multiport Register Files. Ultra Low Power (ULP): Designed for battery-powered applications, ULP achieves dramatic breakthroughs in low power consumption and low voltage operation. The ULP product is available as Single Port SRAMs.

About Atmel
Founded in 1984, Atmel Corporation is headquartered in San Jose, California with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed signal, nonvolatile memory and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, SiGe, and high-voltage BCDMOS process technologies.

About Virage Logic
Virage Logic (Nasdaq: VIRL) is a leading provider of best-in-class application-optimized semiconductor IP platforms based on memory, logic, I/Os and IP development tools that are silicon proven and production ready. Virage Logic meets market demands for cost reduction, while improving performance and reliability for fabless and integrated device manufacturer (IDM) companies focused on the consumer, communications and networking, handheld and portable, and graphics markets. For further information, visit www.viragelogic.com or call (877) 360-6690 (toll free) or (510) 360-8000.

SAFE HARBOR STATEMENT FOR VIRAGE LOGIC UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
Statements made in this news release other than statements of historical fact are forward-looking statements, including, for example, statements relating to Virage Logic's business outlook, new products and new relationships. Forward-looking statements are subject to a number of known and unknown risks and uncertainties, which might cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include Virage Logic's ability to maintain and develop new relationships with third-party foundries, adoption of technologies by semiconductor companies and increases in the demand for their products, the company's ability to overcome the challenges associated with establishing licensing relationships with semiconductor companies, the company's ability to obtain royalty revenues from customers in addition to license fees, business and economic conditions generally and in the semiconductor industry in particular, competition in the market for embedded memories and other risks including those described in the Company's Annual Report on Form 10-K for the period ended September 30, 2002, filed with the Securities and Exchange Commission (SEC) on December 16, 2002, and in Virage Logic's other periodic reports filed with the SEC, all of which are available from Virage Logic or from the SEC's website (www.sec.gov), and in press releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.

Atmel, the Atmel logo and combinations thereof are registered trademarks, and others contained herein are trademarks, of Atmel Corporation. Other terms and product names in this document may be the trademarks of others.