SilTerra to Provide Virage Logic's IPrima(TM) Foundation Platform to Its 130nm Process Customers

SilTerra Leverages Virage Logic's New Expanded Distribution Model to Gain Competitive Advantage

FREMONT, Calif. and KULIM, Malaysia, Jan. 24 /PRNewswire-FirstCall/ -- Silicon-proven and technically superior. These are the reasons SilTerra cited for licensing the IPrima Foundation IP platform from Virage Logic Corporation (Nasdaq: VIRL) for its customers. Virage Logic's IPrima Foundation contains memory, logic and I/Os that are optimized to SilTerra's 130 nanometer (nm) process to attain superior performance and manufacturability.

"We were very impressed with Virage Logic's silicon-proven IP at the 180nm node and liked their superior customer support," said Bruce Gray, president and interim CEO of SilTerra. "We wanted to provide our customers with the most robust design libraries so their products can take full advantage of our 130nm process capability and ramp up for volume production quickly. By leveraging Virage Logic's expertise as a leading semiconductor intellectual property provider, our customers will have access to the highest quality libraries in the industry."

Virage Logic also announced today it is extending its distribution model from a customer-paid licensing and royalty-bearing model to include a new Foundry Pays option in which foundries can license Virage Logic IP directly and provide it to their customers (see related press release: Virage Logic Extends Distribution Model ... ).

"We are pleased to strengthen our relationship with SilTerra and are proud to be their library supplier of choice at 130nm," said Adam Kablanian, Virage Logic's CEO and president. "SilTerra is on a fast-track to growth, and we believe their decision to provide our IP to their customers under our new Foundry Pays model will help them escalate that growth further by providing a differentiator that will allow them to penetrate their desired markets quickly."

Under the terms of the agreement, SilTerra customers will be able to download design kits containing Virage Logic's IPrima Foundation IP Platform from the "Members" section of Virage Logic's website.

About Virage Logic's IPrima Foundation

Virage Logic's IPrima Foundation -- comprising the Area, Speed and Power (ASAP) Memory(TM) High-Density (HD) Memories, ASAP Logic(TM) HD Standard Cells and Base I/O Libraries -- are built to satisfy a wide range of design requirements. IPrima Foundation users also have optional access to Virage Logic's rich portfolio of highly differentiated IP, including the industry's only integrated embedded self-test and repair memory, the STAR Memory System(TM), as well as the ASAP Memory High-Speed (HS) and Ultra-Low-Power (ULP) product lines, the ASAP Logic Ultra-High-Density (UHD) and ULP Standard Cell Libraries and the patented ASAP Logic HD and HS Metal Programmable Cell Libraries.

Availability

IPrima Foundation front-end design kits optimized for SilTerra's 130nm process will be available for download from the "Members" section of Virage Logic's Website, www.viragelogic.com, in late February 2005. Production release will be available in June 2005.

About Silterra Malaysia Sdn. Bhd.

Silterra Malaysia Sdn. Bhd. is a leading semiconductor wafer foundry that provides advanced foundry standard CMOS logic, high-voltage and mixed- signal/RF technologies. The company's wafer fab has a designed capacity of 40,000 eight-inch wafers per month. Silterra, which is committed to world- class service and environmental friendliness, received Notable Mention in the Malaysian Prime Minister's Hibiscus Award competition for Environmental Performance in 2003. The company is ISO 9001:2000 and ISO 14001 certified. Silterra's headquarters and factory are located in Kulim, Malaysia, and the company has offices in San Jose (California), Scottsdale (Arizona), Hsinchu (Taiwan) and Munich (Germany). For additional information on Silterra or its services, please visit www.silterra.com.

About Virage Logic Corporation

Founded in 1996, Virage Logic Corporation (Nasdaq: VIRL) rapidly established itself as a technology and market leader in providing advanced embedded memory intellectual property (IP) for the design of complex integrated circuits. Today the company is a global leader in semiconductor IP platforms comprising embedded memories, standard cells, and I/Os and is pioneering the development of a new class of IP called Silicon Aware IP. Silicon Aware IP tightly integrates Physical IP (memory, logic and I/Os) with the embedded test, diagnostic, and repair capabilities of Infrastructure IP to help ensure manufacturability and optimized yield at the advanced process nodes. Virage Logic's highly differentiated product portfolio provides higher performance, lower power, higher density and optimal yield to foundries, integrated device manufacturers (IDMs) and fabless customers who develop products for the consumer, communications and networking, hand-held and portable, and computer and graphics markets. The company's comprehensive quality efforts are validated in its FirstPass-Silicon Characterization Lab, which helps ensure high quality, reliable IP across a wide range of foundries and process technologies. Headquartered in Fremont, California, Virage Logic has R&D, sales and support offices worldwide. For more information, visit www.viragelogic.com.

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 trends, business outlook, products, and customer 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 forecast its business, including its revenue, income and order flow outlook; Virage Logic's ability to execute on its strategy to become a provider of semiconductor IP platforms; Virage Logic's ability to continue to develop new products and maintain and develop new relationships with third-party foundries and integrated device manufacturers; adoption of Virage Logic's technologies by semiconductor companies and increases or fluctuations 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, to receive accurate information necessary for calculating royalty revenues and to collect royalty revenues from customers; business and economic conditions generally and in the semiconductor industry in particular; competition in the market for semiconductor IP platforms; and other risks including those described in the company's Annual Report on Form 10-K for the period ended September 30, 2004, and in Virage Logic's other periodic reports filed with the SEC, all of which are available from Virage Logic's website (www.viragelogic.com) or from the SEC's website (www.sec.gov), and in news releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.

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