Cadence, IBM Team to Simplify Chip Design Process

SAN JOSE, Calif. & EAST FISHKILL, N.Y.--(BUSINESS WIRE)--Sept. 30, 2002--Cadence Design Systems, Inc. (NYSE:CDN), the world's leading supplier of electronic design products and services, and IBM (NYSE:IBM) today announced a series of agreements intended to simplify the chip design process for their customers, while helping them tap the latest in chip technologies.

Under the first agreement, IBM will extend its use of existing, and add new, Cadence electronic design automation (EDA) software tools in its design of microchips for both internal purposes as well as for external customers. Under a separate agreement, Cadence will also acquire intellectual property associated with select IBM in-house EDA test tools for incorporation into the Cadence product family. This will bring commercial design automation support to IBM's customers to help them take full advantage of IBM's test methodology and technology, as well as making the technology more broadly available.

Under a third agreement, the two companies plan to collaborate on future EDA technology to address growing chip design challenges as circuit sizes continue to shrink to 90nm and smaller nodes.

"Cadence is delighted with this significant expansion of our relationship with IBM," said Ray Bingham, president and chief executive officer of Cadence. "Our goal is to help our customers achieve first silicon success. By teaming with a recognized leader in complex chip designs and in chip-making technology, we believe we can help our customers not only handle the growing complexity of chip design, but also conquer the challenges presented by nanometer scale manufacturing technologies."

EDA software tools are used collaboratively by chip-makers and designers with their customers to develop new chip designs. That process is made easier if both parties are familiar with, and use, the same tools. These agreements between Cadence and IBM are intended to promote greater commonality between the tools used by IBM and its customers, while also opening up broader access to more of IBM's extensive in-house design technology.

"IBM has a unique combination of process technology, intellectual property, EDA tools and design expertise that we're working to make more broadly available to customers," said John Kelly, senior vice president and Technology Group executive for IBM. "As the number one EDA tool supplier, with both deep design skills and experience in a broad range of applications, Cadence is a natural choice as a company to work with. We believe IBM and Cadence can collectively provide our customers with a more comprehensive set of tools and services to meet their needs."

These agreements follow an Aug. 22, 2002 IBM/Cadence Design Foundry announcement in which the two companies outlined plans to help customers enhance new chip designs by providing a complementary set of intellectual property (IP), design skills and advanced manufacturing services.

IBM's relationship with Cadence is part of a strategy to make IBM's leading-edge chip-making technology more readily available to customers through high-end foundry and custom ASIC (application-specific integrated circuit) design services, as well as a portfolio of standard chip products.

About Cadence

Cadence is the world's largest supplier of electronic design technologies and services. Leading computer, networking, wireless, and consumer electronics companies use the company's solutions to design electronic systems and semiconductors down to nanometer scale. IEEE, the world's largest technical professional society, honored Cadence with its 2002 Corporate Innovation Recognition award. With approximately 5,600 employees and 2001 revenues of approximately $1.4 billion, Cadence has sales offices, design centers, and research facilities around the world. The company is headquartered in San Jose, Calif., and traded on the New York Stock Exchange under the symbol CDN. More information about the company and its products and services is available at www.cadence.com.

About IBM

IBM Microelectronics is a key contributor to IBM's role as the world's premier information technology supplier. IBM Microelectronics develops, manufactures and markets state-of-the-art semiconductor and interconnect technologies, products and services. IBM makes chips for a wide range of devices from the world's most powerful computers to the smallest cell phones. Its superior integrated solutions can be found in many of the world's best-known electronic brands. More information about IBM Microelectronics can be found at: www.ibm.com/chips.

Cadence and the Cadence logo are registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.

     Cadence Design Systems, Inc.
     Judy Erkanat, 408/894-2302
     jerkanat@cadence.com
          or
     IBM Microelectronics
     Scott Sykes, 845/892-5023
     sykessc@us.ibm.com