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Tensilica and Virtual IP Group Announce MP3 Decoder for the Xtensa Processor

SUNNYVALE, Calif.----Oct. 9, 2000--Tensilica®, Inc., a Santa Clara-based provider of application-specific processors and development tools for System-on-Chip (SOC) designs and Virtual IP Group Inc., a design foundry providing intellectual property (IP) cores and design services to the embedded systems market, announced today the availability of an MP3 audio decoder for Tensilica's Xtensa(TM) configurable microprocessor architecture.

The decoder, compliant to ISO MPEG-1/2 Audio Layer III, offers an optimized hardware and software solution for creating SOC-based MP3 players.

The emergence of Internet-fueled MP3 digital audio has ignited an explosion of product development based on the new standard, and is revolutionizing the distribution and playback of music content. This has given rise to a new category of products capable of playing MP3 encoded files providing anytime, anywhere entertainment. Examples include PDA's, next generation set-top boxes, cell phones and digital cameras that have common low cost and power requirements. Virtual IP Group and Tensilica have addressed these demands with an MP3 package that provides hardware extensions and optimized code that will accelerate the decoding algorithm, resulting in an ideal solution for embedded applications where power and memory efficiencies are critical.

``MP3 playback is a key enabler for an ever increasing number of consumer products,'' stated Bernie Rosenthal, Tensilica's vice president of marketing and business development. ``With very narrow market windows in consumer electronics time to market is everything. The MP3 package we've developed with Virtual IP Group ensures our customers will be able to hit their targets with a low cost and power solution.''

``Using the Xtensa platform and tools, we have created an optimized MP3 decoder with a combination of hardware extensions and software that results in a very compact and power efficient solution,'' said Joseph Hong, Virtual IP Group's vice president of marketing. ``With the convergence of demand for configurable processors and MP3 playback we see a bright future for both companies''

Availability and Pricing

The MP3 decoder object code is available now for license from Virtual IP Group. License fees start at $30,000 for a single instance use.

About Virtual IP Group, Inc.

Virtual IP Group was established in 1994. It is a leading design foundry providing intellectual property (IP) development, licensing and integration services as well as front end and back end design services. The company offers a comprehensive library of silicon-proven, synthesizable, intellectual property cores for implementation in FPGA, ASIC and COT design platforms. In March 2000, ZiLOG Inc. purchased a 20-percent equity stake in Virtual IP Group and QualCore Logic Ltd., an affiliate of Virtual IP Group located in Hyderabad, India. For additional information, visit www.virtualipgroup.com or call 408-733-3344.

About Tensilica

Tensilica was founded in July 1997 to address the fast-growing market for configurable microprocessor cores and software development tools for high volume, embedded systems. Using the company's proprietary Xtensa Processor Generator, system-on-a-chip (SOC) designers can develop a processor subsystem hardware design and a complete software development tool environment tailored to their specific requirements in hours.

Tensilica's solutions provide a proven, easy-to-use, methodology that enables designers to achieve optimum application performance in minimum design time. The Company has over 100 engineers engaged in research, development, and customer support from its offices in Santa Clara, California, Waltham, Massachusetts, Princeton, N.J., Houston, Texas, Oxford, U.K. and Yokohama, Japan.Tensilica is headquartered in Santa Clara, California (95054) at 3255-6 Scott Boulevard, and can be reached at (408) 986-8000 or via www.tensilica.com on the World Wide Web.

``Tensilica'' is a registered trademark and ``Xtensa'' is a trademark belonging to Tensilica, Inc.


Contact:
     Virtual IP Group
     Joseph Hong, 408/733-3344
     jhong@virtualipgroup.com
     or
     Tensilica Inc.
     Bernie Rosenthal, 408/327-7302
     bernier@tensilica.com
     or
     The Leapfrog Group
     Kim Alfaro, 415/563-4769
     kimpr@holonet.net

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