The new distribution and pricing model offered by e*ECAD allows SVR customers to download, install and run the tools they need and only be charged for the actual usage time, which can be billed in .01 second increments. The tools are available to download on e*ECAD's website, www.eecad.com.

"We have listened to our customers and the market place and the message was overwhelmingly consistent - customers want to pay for tools when they use them and pay for support when they need it," said James Benouis, SVR's President and CEO. "No maintenance or upfront licensing fees. Simple, pay-per-use licensing over the Internet is the future and we are committing whole-heartedly to this new model."

Initially, Silicon Valley Research will offer several tools through the e*ECAD service. Most notably, the Company will offer GARDSTM, its production-proven, fast, high capacity (over 1 million gates) place and route system for cell-based designs using deep submicron technology. GARDS, which is currently showcased on the e*ECAD site, provides on-line signal integrity analysis allowing the user to detect problems and solve them immediately without going to off-line timing checkers. Timing success is achieved through the close integration of simulation capability inside the place and route environment. In the future, the Company may offer more tools through e*ECAD if demand expectations warrant it. The Company will offer GARDS on e*ECAD at a discounted rate until the end of the year to encourage new users to embrace the new licensing model.

"Silicon Valley Research's software complements the array of best-of-breed products that we offer to our customers," said Richard Siemiatkowski, President of e*ECAD. "We only accept software tools that have gone through an extensive screening process. Silicon Valley Research exemplifies the quality of product we want to deliver."

SVR recently expanded its Austin facility to support new users of its on-line tools by adding space and support personnel. The Austin facility will serve as the Internet support center for both e*ECAD and existing customers. SVR will also be offering web-based training, demos and interactive on-line support.

"This isn't just putting some software on a server somewhere and adding a .com to your name. We have completely re-thought our products and services from the ground up to support and empower this new direction," commented Mr. Benouis.

Recently launched, e*ECAD is the first Web service to offer engineers featured EDA tools hosted on their worldwide Internet portal that delivers the tools on a pay-per-use basis. e*ECAD's unique purchase and delivery system is the first to give customers a comprehensive suite of high-quality EDA software from multiple vendors with a very affordable pricing structure. Users can access e*ECAD's broad variety of software and download selected tools to their computers. A meter automatically calculates individual usage and bills only for the time used.

"If you need to use a hammer, you shouldn't have to pay for the time it takes you to drive to the store, select the hammer, check out, drive home and begin using it - you should only have to pay for the time you are striking nails," said Richard Siemiatkowski, President of e*ECAD. "By purchasing Silicon Valley Research tools through e*ECAD, customers will only have to pay for the time they are striking nails, or in real terms, developing cell based designs."

The e*ECAD model transcends traditional licensing methodologies to deliver next-generation solutions, eliminating geographical restrictions and the high costs of licensing and maintenance. In addition, e*ECAD eliminates the traditional ASP shortfalls by offering tools that are downloadable to the user's machine. e*ECAD-enabled tools are not purchased by the year, month or even day, but rather on an elapsed run-time or pay-per-use basis.

e*ECAD provides unparalleled value to customers, participating vendor partners and design consultants. Customers are freed from burdensome up-front licensing fees, maintenance hassles and design bottlenecks. Participating Vendor Partners not only receive worldwide exposure and more predictable revenue streams, but they also reduce marketing, sales and distribution costs. Design consultants have access to a broad range of tools without the restrictions of costly licensing fees, expiration dates, host IDs and seat (license) limitations.

Through e*ECAD's innovative delivery system, users have the ability to maximize their tool usage at significantly lower cost, compared to the traditional high-cost licensing fees. "This model stands to revolutionize the way companies and independent developers cost estimate various projects. The pure pay-per-use model has arrived…finally," said Mr. Siemiatkowski.

About Silicon Valley Research

Founded in 1979, Silicon Valley Research, Inc. develops, markets and supports innovative IC physical design software for floorplanning, placement, routing, custom layout and parasitic extraction of deep submicron Integrated Circuits (ICs). SVR's products are used by integrated circuit vendors, integrated circuit manufacturers, large electronic systems manufacturers and major aerospace, automotive and consumer electronics companies to create the physical design of their integrated circuits (ICs). SVR also provides design consulting services and support to its customers. The advanced technology in SVR's production-proven tools results in dense, high yielding, high performance chips. Headquartered in San Jose, California, SVR has sales representatives in the United States, Asia, and Europe. Information on potential factors, which may affect the Company's financial results, are included in the Company's Quarterly Reports on Form 10-QSB and the Company's Annual Report on Form 10-KSB.

About e*ECAD

e*ECAD, located in Santa Clara, California, is a Web portal that delivers EDA tools on a pay-per-use basis. e*ECAD's unique purchase and delivery system has distinguished the portal as the first company to offer EDA software from multiple vendors in a pay-for-time or pay-for-use model. e*ECAD is committed to providing value to customers by offering high-quality tools with a pricing structure that makes them affordable.