Tensilica's Xtensa LX Processor Licensed by NVIDIA

SANTA CLARA, CA – January 17, 2005 – Tensilica, Inc. today announced that NVIDIA Corporation has licensed the Xtensa LX configurable processor. This license will allow NVIDIA to add specialized functions to its outstanding graphics capabilities in new system-on-chip (SOC) designs.

 “For the application areas we are targeting, the extensibility and performance of Tensilica’s Xtensa LX microprocessor were key factors in our license decision,” stated Chris Malachowsky, Co-Founder and Vice President of Hardware Engineering, NVIDIA.  “We were very impressed with Tensilica’s automated approach for both the processor extensions and the generation of the associated software tools. We are anxious to capitalize on the improved productivity and flexibility that Tensilica’s configurable microprocessor and toolset provides us over our more traditional fixed function, hand-coded implementation techniques.”

The Xtensa LX configurable processor can be used to meet high-performance and low-power goals difficult to attain with standard general-purpose embedded processors. The Xtensa LX processor achieves speeds rivaling hand-coded RTL because design teams use Tensilica’s easy-to-use graphical tools to carefully tune the processor for their particular applications. Customized Xtensa LX processors are correct by construction and feature an automatically created matching software tool chain.

“We are excited that NVIDIA chose our Xtensa LX processor,” stated Chris Rowen, President and CEO of Tensilica.  “The engineers at NVIDIA were quick to understand the advantages of implementing functions in a configurable processor. We’re happy to work with them as they enrich their product offerings.”

About NVIDIA

NVIDIA Corporation is a worldwide leader in graphics and digital media processors. The Company's products enhance the end-user experience on consumer and professional computing devices. NVIDIA GPUs (graphics processing units), MCPs (media and communications processors), and WMPs (wireless media processors) have broad market reach and are incorporated into a variety of platforms, including consumer and enterprise PCs, notebooks, workstations, PDAs, mobile phones, and video game consoles. NVIDIA is headquartered in Santa Clara, California and employs more than 2,000 people worldwide. For more information, visit the Company’s Web site at www.nvidia.com.

About Tensilica

Tensilica was founded in July 1997 to address the growing need for optimized, application-specific processor solutions in high-volume embedded applications. With a configurable and extensible processor core called Xtensa, Tensilica is the only company that has automated and patented the time-consuming process of generating a customized processor core along with a complete software development tool environment, producing new configurations in a matter of hours. For more information, visit www.tensilica.com.

Certain statements in this press release including, but not limited to, statements as to the benefits, uses, capabilities and performance of the Xtensa LX configurable microprocessor and the benefits of the license are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Such risks and uncertainties include, but are not limited to, termination of the license, reliance on the Xtensa LX configurable microprocessor, delays in ramping new products into production, manufacturing defects, incompatibility of technologies, reliance on third-party manufacturers, general industry trends, the impact of competitive products and pricing alternatives, changes in industry standards and interfaces, our dependence on third-party developers and other risks detailed from time to time in the NVIDIA reports filed with the Securities and Exchange Commission including its Form 10-Q for the quarter ended October 24, 2004. These forward-looking statements speak only as of the date hereof. NVIDIA disclaims any obligation to update these forward-looking statements.