Renesas Technology Corp. and Imagination Technologies Extend Cooperation

Renesas licenses a second PowerVR SGX graphics/video core

October 10, 2006 -- Imagination Technologies Group plc ("Imagination") – a leader in System on Chip Intellectual Property (" SoC IP") – reports that Renesas Technology Corp. (“Renesas”), one of the world’s leading semiconductor system solutions providers, has licensed a second member of the PowerVR SGX graphics / video core family under a multiple-use license arrangement. As reported previously, another member of PowerVR SGX core family was licensed by Renesas in March 2006.

Previously Renesas has also licensed PowerVR MBX and PowerVR MBX Lite and is currently deploying these in automotive, consumer and mobile devices.

Under the terms of its licensing arrangements Imagination Technologies receives license fees and royalty revenues on SoCs incorporating Imagination Technologies’ IP shipped by partners.

About PowerVR SGX
PowerVR SGX, the new generation PowerVR shader based graphics and video technology family, is part of the Imagination’s PowerVR Series5 scalable and fully programmable shader graphics and video core family. With state-of-the-art support for 2D and 3D PowerVR SGX has an industry-leading feature set that exceeds OGL 2.0 shader and Microsoft Vertex and Pixel Shader Model 3 requirements. The Power SGX family can also perform video/image decode and encode processing for standards such as H.264, MPEG4/2, WMV, JPEG and others. PowerVR SGX family members target mobile, automotive, consumer and PC markets.

About Imagination Technologies
Imagination Technologies Group plc – a leader in SoC IP – develops, licenses and supplies market-leading graphics, video and display cores, real-time multi-threaded DSP/RISC processors and communication and broadcast technologies for the mobile, consumer, automotive and PC markets. It supplies licensable IP (Intellectual Property) supported by advanced development tools to leading semiconductor and consumer electronics companies worldwide. Imagination Technologies Group plc has its corporate headquarters in the United Kingdom and is publicly traded on the London Stock Exchange (FTSE:IMG). See:www.imgtec.com.