SMIC Selects Virage Logic as Its IP Provider

SHANGHAI, China, and FREMONT, Calif., October 30, 2003 - Semiconductor Manufacturing International Corporation (SMIC), one of China's most advanced foundries, and Virage Logic Corporation (Nasdaq:VIRL), a leading provider of best-in-class semiconductor IP platforms, today announced SMIC has selected Virage Logic as its IP provider. This is in addition to their earlier agreement on 0.18-micron technology. This new agreement will make Virage Logic's silicon-proven Technology-Optimized semiconductor IP Platforms available on SMIC's advanced 0.13-micron CMOS process.

"We are very pleased to expand our cooperation with Virage Logic, one of the industry's leading IP providers. With its broad portfolio of highly differentiated IP, Virage Logic's silicon-proven Technology-Optimized Platforms meet the stringent innovation and quality needs of SMIC's customers worldwide," said Dr. Sam T. Wang, president, SMIC Americas. "Also, with Virage Logic's ability to respond 24/7 and proven track record of superior customer support, we can better service our customers to help them meet their time-to-market and time-to-volume pressures without sacrificing quality."

"We are honored that SMIC has selected Virage Logic as its IP provider to service their growing worldwide customer base. Our Technology-Optimized Platforms provide SMIC's customers with a single source for fully tested and validated IP that addresses such critical needs as density, performance and power," said Adam Kablanian, president and CEO, Virage Logic. "We also work very closely with our customers to ensure high manufacturing yields that dramatically cut silicon and system costs."

Technology-Optimized Semiconductor IP Platforms
Building on its technology and market leadership position, Virage Logic's Technology-Optimized Platforms aim to meet the critical requirements of reducing silicon costs and failure risks, while boosting performance and ensuring high manufacturing yields for a particular foundry or IDM process. By providing silicon-proven, integrated IP that is compatible with all the major EDA flows, Virage Logic's Technology-Optimized Platforms address the needs of complex and mainstream System-on-Chip (SoC) designs.

Virage Logic's Technology-Optimized Platforms are based on its highly differentiated IP, including the Self-Test and Repair (STAR) Memory System™, the Area, Speed and Power (ASAP) Memory™ product line, the ASAP Logic™ standard cell libraries, and the company's Base I/O libraries. Technology-Optimized Platforms enable customers to expedite the creation of next-generation products by addressing the increasingly complex task of identifying and obtaining the semiconductor IP needed to produce successful, on-time products. Virage Logic's semiconductor IP platform strategy calls for the delivery of Technology-Optimized Platforms for a broad range of third-party foundry and IDM processes.

Availability
Virage Logic's Technology-Optimized Platforms for SMIC's 0.13-micron CMOS process is targeted for release by the first quarter of 2004.

About SMIC
As one of China's most advanced foundries, SMIC provides IC manufacturing at 0.35-micron down to 0.18-micron and finer technologies. Established in April 2000, SMIC is a Cayman Islands company with three 8-inch fabs in volume production in Shanghai and a 12-inch facility currently under construction in Beijing. It is also in the process of acquiring an 8-inch fab in Tianjin. In May 2003, SMIC's Fab1 was named one of two "Top Fabs of the Year 2003" by Semiconductor International magazine, a leading industry publication. In addition to IC manufacturing, SMIC provides customers with a full range of services that includes design services, mask manufacturing and testing. As a result of its dedication towards providing high quality services and protecting the environment, all three fabs in Shanghai have obtained ISO9001 and ISO14001 certifications. These three fabs have also been certified to the international OHSAS18001 standard for health and safety. For more information, please visit www.smics.com.

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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements made in this news release, other than statements of historical fact, are forward-looking statements, including, for example, statements relating to trends, business outlook, products, and customer relationships. Forward-looking statements are subject to a number of known and unknown risks and uncertainties, which might cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include Virage Logic's ability to forecast its business, including its revenue outlook; Virage Logic's ability to execute on its strategy to become a provider of semiconductor IP platforms; Virage Logic's ability to continue to develop new products and maintain and develop new relationships with third-party foundries and integrated device manufacturers; adoption of Virage Logic's technologies by semiconductor companies and increases in the demand for their products; the company's ability to overcome the challenges associated with establishing licensing relationships with semiconductor companies; the company's ability to obtain royalty revenues from customers in addition to license fees, to receive accurate information necessary for calculating royalty revenues and to collect royalty revenues from customers; business and economic conditions generally and in the semiconductor industry in particular; competition in the market for semiconductor IP platforms; and other risks including those described in the company's Annual Report on Form 10-K for the period ended September 30, 2002, filed with the Securities and Exchange Commission (SEC) on December 16, 2002, and in Virage Logic's other periodic reports filed with the SEC, all of which are available from Virage Logic or from the SEC's website (www.sec.gov), and in news releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.

CONTACTS:

SMIC
SMIC Americas
Mrs. Helen Tan
(510) 492-2025
Helen_Tan@smics.com

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

Kerry McClenahan
McClenahanBruer Communications
(503) 546-1002
kerry@mcbru.com

SMIC Shanghai
Ms. Sarina Huang
86 21 5080 2000 x 10356
Fax: 86 21 5080 2868
Sarina_Huang@smics.com