Cadence and IBM Team to Develop Leading-Edge IP

Agreement Will Deliver Faster, Higher Quality Systems-on-Chips

SAN JOSE, CA-- May 24, 2010 - Cadence Design Systems, Inc. (NASDAQ:CDNS - News), the global leader in EDA360, today announced a joint development agreement with IBM to create high-performance integration-optimized IP that will help customers deliver leading-edge designs while reducing the risk and time associated with integrating complex SoC Designs.

Under the agreement, the companies will develop DDR PHYs, memory controllers, and protocols such as PCIe and Ethernet under 32-nanometer silicon-on-insulator. The technology will be used in servers, video games and other devices and will be available through the newly announced Cadence® Open Integration Platform.

A core component of its EDA360 vision, the Cadence Open Integration Platform comprises an integration design environment, integration-optimized IP and on-demand integration services, all facilitated by Cadence's leading mixed-signal and digital design, verification and implementation technologies.

"Qualifying and integrating complex IP is a costly and growing burden for many of our customers," said Vishal Kapoor, vice president, Product Management of Cadence. "We look forward to teaming with IBM to relieve some of that burden for engineering teams as they grapple with SoCs and systems that will only continue to grow in size and complexity."

"The IP we're working on with Cadence will provide state of the art building blocks that will allow our customers to build more powerful, higher bandwidth networking and communications technology," said Marie Angelopoulos, director, IBM Microelectronics. "This collaboration with Cadence combines IBM's expertise in developing and integrating process and IP technology with Cadence's experience in IP development to supply customers with the tools needed to build a new generation of communications infrastructure."

About Cadence

Cadence enables global electronic design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence software and hardware, methodologies, and services to design and verify advanced semiconductors, consumer electronics, networking and telecommunications equipment, and computer systems. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company, its products, and services is available at http://www.cadence.com/.