Innovative Silicon Secures $16M in Series B Funding

SANTA CLARA, Calif. & LAUSANNE, Switzerland--(BUSINESS WIRE)--June 27, 2005--Innovative Silicon Inc. (ISi) developer of the Z-RAM(TM) (Zero capacitor DRAM) embedded memory technology announced today that Austin Ventures has joined with existing investors to lead a $16M Series B round of investment in the company. ISi will use the financing to expand sales and marketing initiatives for its ultra-high density memory technology. ISi's Z-RAM technology can achieve five times the density of embedded SRAM and twice the density of embedded DRAM while using a standard SOI logic process, allowing SoC and microprocessor designers to significantly reduce silicon costs or dramatically increase the embedded memory content of their designs.

Austin Ventures is an active and focused investor in silicon technologies across mixed signal, digital, EDA and IP realms. Austin pursued their investment in ISi after witnessing first hand the accelerating growth of SOI processes and large embedded memories within the semiconductor design community. "The feedback we received on Z-RAM from SOC and microprocessor designers and manufacturers was outstanding. Z-RAM is revolutionary in that it really turns what was a minor bug of SOI into a major feature and achieves for the first time a true scalable single device memory. Embedded memory is now so important to advanced designs that we expect the Z-RAM innovation to have a major effect on semiconductor economics and performance" said Basil Horangic, general partner at Austin Ventures.

"Embedded memory technology is becoming the dominant factor affecting the cost of leading edge SoCs and microprocessors today," said Mark-Eric Jones, ISi President and CEO. "This new investment will help fuel our growth and provide our patented ultra-high density Z-RAM technology to designers producing next generation semiconductor products."

About Innovative Silicon Inc

Founded in 2002, ISi develops markets and licences intellectual property (IP) that enables the production of ultra-high density memory devices based on the floating body effect. This IP can be incorporated into SoC, MPU and other embedded memories, which are used in products for diverse applications including PCs and handheld computers, games consoles, cellular communications devices, and cameras. The company closed its first round of VC funding in 2003 and taped out its first 90nm megabit Z-RAM memory designs in 2004. ISi is incorporated in the USA with an R&D facility in Lausanne, Switzerland.

For more information visit the company's web site at www.z-ram.com

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Source: Innovative Silicon Inc.