Palmchip Launches Semiconductor Company

• Company opens a design center in Pakistan
• Sells storage IP to Mentor Graphics

SAN JOSE, Calif., August 23, 2004 – Palmchip Corporation, a pioneer in semiconductor IP and system-on-chip platform technology, today announced that they are launching a new company to be called Palmchip Semiconductor, Inc. The company will focus on providing chips for wireless storage applications and will soon announce the first wireless storage Application Specific Standard Product. (ASSP) . In support of their new ASSP business, Palmchip is also announcing that they have opened a design center in Pakistan and sold their storage intellectual property (IP) to Mentor Graphics Corporation (Nasdaq: MENT).

The company will produce single chip wireless storage ASSPs that will replace the multi-chip solutions available today. Through the adoption of a single-chip solution, Palmchip customers will benefit from lower power consumption, lower system cost, and significant system performance improvement. These products target a growing need for inexpensive external storage for a multitude of wireless applications ranging from PDAs to cell phones, to wireless home networks.

Palmchip’s design center in Pakistan will provide hardware and software expertise in developing turnkey solutions for the wireless storage market. “This move to semiconductor products is a natural progression for us. For the past eight years, we have used our industry renown AcurX SoC platform, tools technology, and IP cores to create many storage SoCs and wireless ASICs for our customers,” said Jauher Zaidi, CEO and President of Palmchip. Our knowledge, experience, and success in the creation of products for our customers has led us to the decision to focus on creating high-value ASSPs to address this fast growing market opportunity.”
    
About Palmchip Semiconductor

Palmchip Semiconductor, a spinout company of Palmchip Corporation that was founded in 1996, develops system-on-chip (SoC) silicon solutions for the wireless storage market.

Palmchip Semiconductor uses the highly flexible and scalable AcurX™ SoC technology which is based on its patented CoreFrame ® SoC integration architecture and was developed by Palmchip Corporation in 1996. This technology provides the most efficient implementation of multi-million gate SoC solutions in terms of highest performance with lowest power consumption and smallest die size. AcurX allows Palmchip to significantly reduce time spent in design and implementation allowing the company to rapidly deploy new chips for the fast changing storage market.

To complement the AcurX technology, Palmchip Semiconductor has a library of silicon proven intellectual property modules ready to use in chip designs. For more information go to the company’s website: www.palmchip.com