XHMicro Acquires Full Source Code and Development Rights to Improv System's Jazz-based DSP IP

Leading Chinese IP and Design Services Firm to Customize Solutions for Local Markets, Drive Next Generation Development of Innovative Configurable IP Architecture

BEIJING -- July 14, 2008 -- XHMicro, a leading provider of semiconductor intellectual property (IP) and design services, today announced that it has received full source code and development rights to the innovative Jazz™ configurable semiconductor IP and development tool technologies developed by Improv Systems. The technology, which provides high-performance low power digital signal processing (DSP) capabilities for leading-edge consumer and multimedia products, has been in use for ten years by product developers worldwide. XHMicro intends to further develop the solutions and customize them for the Chinese IC design market.

The company also announced plans to develop a next-generation DSP architecture based on the Improv technology foundation that will enhance the performance and capabilities of the technology, with a particular emphasis on multi-core design architectures. XHMicro is in discussions with the Chinese government to assist in the funding of this development.

“This is a significant addition to our portfolio of services, and positions us extremely well to address the wide range of opportunities in the Chinese market for consumer, communications and mobile applications. Improv has developed a strong track record of success in other parts of the word for its high-performance and flexible solutions, and we are looking forward to adapting this proven foundation to the unique needs and characteristics of the Chinese market,” said Weixin Ni, President of XHMicro.

The agreement establishes XHMicro as the leading native supplier of advanced semiconductor IP in China. It intends to offer the Jazz-based cores, development systems and tools to its Chinese customers, with licensing agreements and support geared to local legal and use-model requirements. Its 25-person development team in Beijing, working in conjunction with some of the leading engineering universities in China, will also focus on developing an enhanced processor IP platform based on the Jazz architecture.

The popular Jazz DSP core is a highly configurable, multiprocessor architecture that is well suited for today’s demanding consumer, multimedia and mobile communications applications. Rather than a fixed processor and instruction set, the Jazz DSP is used to create designer-defined DSP cores - Jazz DSPs that are customized by the designer for their specific product or application domain. The Jazz DSP, also available in pre-configured options, is a very long instruction word (VLIW) architecture that provides high performance through parallel execution of operations.

“This agreement represents an important step not just for XHMicro but for the IP industry as a whole in acknowledging that there are unique requirements to doing business and serving product developers in China. We feel XHMicro is very well positioned to adapt and evolve the Jazz technology to service the tremendous opportunity here, and has the local business knowledge necessary to penetrate the market,” said Victor Berman, CEO of Improv, who will also assist in driving IP standards industry-wide in China.

About XHMicro

Founded in 2005, XHMicro offers a broad range of semiconductor IP and design services to the Chinese electronics market. Its suite of digital and analog blocks, including advanced micro-RISC cores, has been widely used to implement sophisticated electronic products by leading developers. It offers its IP on a royalty-free licensing model, providing a low-cost, low-risk entry point. XHMicro also provides comprehensive product design services, from system specification, verification, test and prototyping, through to hand-off to final manufacturing. XHMicro is a Vivace Semiconductor company and is headquartered in Beijing, China.