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Philips Semiconductors and Tality Partner to Provide Complete Embedded Bluetooth System Solutions

EINDHOVEN, The Netherlands & SAN JOSE, Calif.--(BUSINESS WIRE)-- May 31, 2001--

Customizable Reference Modules and Design Services

Speed Time to Market

Philips Semiconductors, a division of Royal Philips Electronics, (NYSE:PHG, AEX:PHI), and Tality Corporation, a subsidiary of Cadence Design Systems, Inc. (NYSE: CDN), announced today a strategic partnership to provide customers with complete embedded Bluetooth(TM) system solutions that significantly reduce the time to market for Bluetooth products, and increase the probability of first-time interoperability.

The solutions consist of a family of Tality-developed Bluetooth reference modules that utilize baseband and RF ICs from Philips Semiconductors, together with Tality's proven protocol stack and application profiles. Tality will provide system integration services in conjunction with the modules to provide customers a complete custom product solution with Bluetooth wireless connectivity. The modules will also be available for license by customers who wish to undertake system design themselves. The first module, measuring 21mm x 15mm, will be released in the second quarter of 2001.

``Philips Semiconductors is the world's third largest producer of communication solutions, and the only company to sell more than one million Bluetooth baseband ICs,'' said Gerhard Heider, Philips Semiconductors' Connectivity manager. ``This partnership will help our customers bring Bluetooth products to market rapidly and at low risk, as our leading hardware combined with Tality's world class Bluetooth software and product design expertise will provide our customers with optimum system solutions.''

``Tality has accumulated design expertise in over 30 Bluetooth system and chip designs, has a proven protocol stack, a full suite of application profiles, and has frequently demonstrated Bluetooth system interoperability,'' said Simon Jones, general manager of Tality's Bluetooth Business Group. ``Our expertise combined with the proven components of Philips Semiconductors -- a recognized leader in Bluetooth component design -- offers our mutual customers world-class embedded Bluetooth system design and delivery.''

Bluetooth Communications

The Bluetooth specification is an open standard that defines a low cost, radio-based technology for short-range wireless communications. Designed to enable wireless transmission of data signals, Bluetooth communication eliminates the need for cables. The technology is already capable of connecting a wide range of communications devices, such as mobile phones and laptop computers, and is capable of revolutionizing connectivity in many other electronic applications.

About Philips Semiconductors

Philips Semiconductors, which had annual revenues of approximately US$6.3 billion in 2000, designs and manufactures semiconductors and silicon systems platforms. Philips Semiconductors is spearheading the emerging field of systems on silicon solutions with the innovative Nexperia(TM) platform and VLSI Velocity(TM) tool set. The company's Sea-of-IP(TM) design methodology allows plug and play intellectual property blocks for easily customizable products. The company is a leader in communications, consumer, PC peripherals and automotive semiconductors, which are key applications for convergence in end-user products. Philips Semiconductors is headquartered in Eindhoven, The Netherlands, and has operations throughout the world. Additional information about Bluetooth system solutions by Philips Semiconductors can be obtained by accessing its home page at http://www.semiconductors.philips.com/bluetooth.

ABOUT TALITY

Tality Corporation, formerly the Electronic Design Services group of Cadence Design Systems, Inc. (NYSE: CDN), was launched as a separate company in October 2000. With more than 1,100 engineers located in 14 design sites worldwide, Tality is the world's largest independent provider of engineering services and intellectual property for the design of complex electronic systems and integrated circuits. Tality is headquartered at 555 River Oaks Parkway, Building No. 3, San Jose, Calif., 95134. www.tality.com.

Additional information about Tality's Bluetooth system solutions may be obtained at: http://www.tality.com/solutions/wireless/bluetooth.html.

Note to Editors: Tality is a trademark of Tality, LP and its general partner, Tality Corporation. Cadence is a registered trademark of Cadence Design Systems, Inc. The Bluetooth trademarks are owned by SIG, Inc. USA and are licensed to Philips Semiconductors. All other trademarks are the property of their respective owners.


Contact:
     Tality Corporation, San Jose
     Jim Douglas, 408/944-7955
     jimd@tality.com
        or
     Cohn Wolfe (for Tality)
     Leslie Taschner, 415/477-4542
     leslie_taschner@cohnwolfe.com
        or
     Philips Semiconductors
     Paul Morrison, 408/474-5065 (USA)
     paul.morrison@philips.com
     Mitsuyo Matsumoto, +81 3 3740 5818 (Japan)
     mitsuyo.matsumoto@philips.com
     Robyn Kao, +886 2 2134 2968 (APAC)
     robyn.kao@philips.com
        or
     Warman & Bannister for Philips Europe
     Chloe Shannon, +44 1223 314545
     ChloeS@warban.com

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