MIPS Technologies Pushes Further into Cellular Arena with Femtocell Design Win

Startup Percello Licenses MIPS32® 24Kc™ Core for Advanced Baseband Chipset Development

MOUNTAIN VIEW, Calif. - July 30, 2008 - MIPS Technologies, Inc. (NasdaqGS: MIPS), a leading provider of industry-standard architectures, processors and analog IP for digital consumer, home networking, wireless, communications and business applications, today announced that fabless semiconductor startup Percello licensed its 24Kc^TM high-performance processor core for next-generation femtocell basestation applications. Femtocells provide the voice and data services of a basestation but with the deployment simplicity of a WiFi access point. This emerging technology is quickly gaining traction in providing low-cost, fully integrated handset services for residential and small business environments.

According to market research firm Forward Concepts, global femtocell equipment revenues are forecast to grow from 2008 at a compound annual growth rate of 126% to $4.9 billion in 2012, and semiconductor revenue from both standalone and integrated home gateway femtocells will grow from 2008 at a compound annual growth rate of 138% to more than $1.5 billion in 2012.

"Femtocells are poised to change the nature of mobile networks, combining all the functionality of a 3G mobile cell site into one compact device," said Shlomo Gadot, CEO, Percello. "In a high-volume market like femtocells, getting the right balance of price, power and performance is critical. We chose MIPS Technologies' 24Kc core because it offers the best possible solution. Driven by the 24Kc core, our next-generation chipset will be the most advanced solution for femtocell basebands, cost-effectively combining the most advanced feature set with an unmatched level of integration."

"The emerging global femtocell market is experiencing tremendous growth, and Percello is at the heart of that growth with its unique Aquilo chipset family," said Brad Holtzinger, vice president of worldwide sales at MIPS Technologies. "MIPS Technologies' cores are designed into the majority of products for the digital home. Now, as femtocells bring mobile phones into the digital home, this relationship expands our presence in the cellular market as well."

Low-power 24Kc cores offer 700 MHz worst-case performance in a 65nm process, and offer the best combination of performance, power and density of any midrange synthesizable CPU in the industry. They are ideal for home entertainment applications as well as portable, battery-powered consumer devices.

About Percello

Percello, a fabless semiconductor company, was founded in 2007 to provide digital baseband solutions for the challenges of the 3G/HSDPA/HSUPA/HSPA+/LTE femtocells market, with emphasis on cost, power, level of integration, development time and flexibility.Percello brings to its customers low-cost, low-power and high-performance digital baseband chips for the UMTS femtocells market, which is the central component in a UMTS femtocell box. Using the Percello chip, femtocell vendors can lower costs and power while increasing communication and networking performance. With Percello's chip inside, operators are able to deliver FMC (fixed mobile convergence) services over low-cost femtocells, which support any existing as well as future UMTS user devices. For more information, visit www.percello.com.

About MIPS Technologies, Inc.

MIPS Technologies, Inc. (NasdaqGS: MIPS) is the world's second largest semiconductor design IP company and the number one analog IP company worldwide. With more than 250 customers around the globe, MIPS Technologies is the only company that provides a combined portfolio of processors, analog IP and software tools for the embedded market. The company powers some of the world's most popular products for the digital entertainment, home networking, wireless, and portable media markets-including broadband devices from Linksys, DTVs and digital consumer devices from Sony, DVD recordable devices from Pioneer, digital set-top boxes from Motorola, network routers from Cisco, 32-bit microcontrollers from Microchip Technology and laser printers from Hewlett-Packard. Founded in 1998, MIPS Technologies is headquartered in Mountain View, California, with offices worldwide. For more information, contact (650) 567-5000 or visit www.mips.com.