NEC Electronics Expands Partnership With Virage Logic To Include NVM Technology

TOKYO, Japan and FREMONT, Calif., October 8, 2003 - Six months after its initial contract for embedded SRAM memories, Virage Logic Corporation (Nasdaq:VIRL), a leading provider of best-in-class semiconductor IP platforms, today announced that it has expanded its licensing agreement with NEC Electronics to include Virage Logic's Non-Volatile Electrically Alterable® (NOVeA) embedded memories. NOVeA is the first embedded non-volatile memory (NVM) that is manufactured on a standard CMOS logic process without any additional masks or process steps. NEC Electronics has qualified Virage Logic non-volatile memories for its 0.15-micron CMOS logic process in order to enable applications requiring cost-effective embedded NVM for security, encryption, unique device identification, trimming, and repair.

Building on its success with Virage Logic's Self-Test and Repair (STAR) Memory System™ and Area, Speed and Power (ASAP) Memory™ product line, NEC Electronics will be integrating silicon-qualified NOVeA into its high volume consumer applications, and also offering it to their ASIC customers.

The NOVeA embedded memories enable designers to reduce overall system costs and size, enhance security and meet their time-to-market requirements by integrating moderate amounts of NVM on a system-on-chip (SoC). As the first non-volatile, electrically alterable embedded memory solution that can be manufactured using standard CMOS logic processes, NOVeA combines non-volatile storage capabilities, fast-data access and high reliability with SRAM-like read/write operations.

"Virage Logic's unmatched support combined with their leadership in innovative embedded memory design has enabled us to drive down not only the overall cost and size of the system, but also helped us get to market more quickly and efficiently," said Mr. Takatoshi Koga, general manager, 2nd Custom LSI Division, NEC Electronics. "We selected the NOVeA embedded memories because enhanced security measures such as key encryption storage are critical for many of our applications. With NOVeA, we now have the ability to securely encrypt information regarding viewing preferences which is critical, especially in some of the emerging markets we are targeting."

"NEC Electronics has long been an early adopter of innovative technology, which has enabled them to enjoy great success as a market leader," said Adam Kablanian, CEO and president, Virage Logic. "We are very pleased to expand our partnership with NEC Electronics to include NOVeA. They worked closely with our development team to ensure that their requirements for embedding NVM were met and that effort ultimately resulted in a better product."

About NOVeA
NOVeA RAM can be reprogrammed in-system up to 1,000 times and is designed for integration into a SoC. It is the first non-volatile, electrically alterable embedded memory solution that can be produced using standard logic processes. With NOVeA, additional process steps and masks are not necessary, thereby reducing costs and delivery time. Submicron NOVeA technology can enhance design security, reduce system size, lower manufacturing costs, reduce power consumption and increase design performance.

About Virage Logic
Virage Logic Corporation (Nasdaq:VIRL) is a leading provider of best-in-class semiconductor IP platforms based on memory, logic, I/Os, and IP development tools that are silicon-proven and production ready. Virage Logic meets market demands for cost reduction, while improving performance and reliability for fabless and integrated device manufacturer (IDM) companies focused on the consumer, communications and networking, handheld and portable, and computer and graphics markets. Virage Logic is headquartered in Fremont, California and has sales and support offices worldwide. For more information, visit www.viragelogic.com or call (877) 360-6690 toll free or (510) 360-8000. Virage Logic's Tokyo, Japan office can be reached by calling +81-3-5403-4751.

For more information contact:

Sabina Burns
Virage Logic Corporation
(510) 743-8115
sabina.burns@viragelogic.com

Jennifer Bader
McClenahan Bruer Communications
(415) 364-3825
jennifer@mcbru.com

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