Virtual Silicon Names Tim Unger New CEO

Founder Steps Aside In Evolutionary Process

SUNNYVALE, Calif., —June 10, 2002 - Virtual Silicon Technology Inc., a leader in semiconductor intellectual property (SIP), today announced that industry veteran Tim Unger has been selected to replace founder, CEO and president Taylor Scanlon. Scanlon is leaving the company to pursue other interests and will remain with the company in a consulting capacity during a transition period. 
"Virtual Silicon is on the verge of taking the next step in its corporate evolution from private to public status," Scanlon stated. "At this time, the board and I have decided it is best to find someone with that kind of transitionary experience to take that step. Mr. Unger has an outstanding reputation in the electronics industry."

"Taylor has been the driving force behind the success Virtual Silicon has demonstrated since its inception," said Tim Unger. "I am excited about the opportunity to join Virtual Silicon at this time. Their position as a leader in the growing semiconductor IP market combined with their talent and financial resources gives me great confidence about our future."

UMC
"UMC's commitment to Virtual Silicon as our IP partner is solid and built upon a history of achievement", said Fu-Tai Liou, chief officer of worldwide sales and marketing for UMC. "Virtual Silicon was key to our success in 0.15 and 0.13 micron technology and will be key to the future success of our 90 nm technology."

Xilinx
"Through close working relationships with foundries, Virtual Silicon develops innovative SIP architectures for advanced silicon processes and provides accurate, industry standard EDA views for their SIP products," said Steve Douglass, director of Product Development at Xilinx. "We have used their SIP in our leading FPGA products with previous process generations with great success. With our current agreement at 90 nm, we can further leverage their technology to continue producing the industry's most advanced programmable logic solutions."

Joe Costello
"I have known Tim Unger since 1994 and he has an outstanding record of success as a technology executive", said Joe Costello, Chairman of Board of Barcelona Design, member of the Board of Directors of Simplex and CEO of think3. "Tim is the best at what he does. That's why I picked him to be part of the Cadence executive team and now's he doing it for the venture community. Virtual Silicon has made a wise choice selecting Tim to lead the company to the next level of growth."

Flextronics
"Virtual Silicon's broad array of UMC-based foundation IP at the major process nodes of 0.18 micron down to 0.13 micron will help us to deliver products, in increasingly shrinking market windows, for emerging standards such as system packet interfaces, SPI-4, SPI-5 and those with proprietary interfaces for optimizing high speed networking applications," said Glen Wiley, vice president and general manager of Flextronics Semiconductor.

About Virtual Silicon Technology
Virtual Silicon is a leading supplier of semiconductor intellectual property and process technology to manufacturers and designers of complex systems-on-chip (SoC). Headquartered in Sunnyvale, CA, the company provides process-specific embedded components that serve the wireless, networking, graphics, communication and computing markets. Customers include leading fabless semiconductor companies, integrated semiconductor manufacturers, foundries, and SoC developers who demand leading edge technology for their semiconductor innovations. For more information, call (408) 548-2700 or visit Virtual Silicon online at www.virtual-silicon.com.

Tim Unger
Tim Unger has over twenty years of extensive experience in senior and general management roles in various technology markets. Tim's previous executive industry experience includes being an entrepreneur-in-residence with US Venture Partners since 1997. Tim was at the helm of a number of USVP portfolio start-ups. Prior to USVP, Tim was senior vice president and corporate officer at San Jose-headquartered Cadence Design Systems.

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