DongbuAnam Selects Virage Logic to Support the Foundry's First 0.13-Micron Offering

FREMONT, Calif., PARIS, France, and SEOUL, Korea, February 17, 2004 - DongbuAnam Semiconductor, the world's fourth-largest foundry, and Virage Logic Corporation (Nasdaq:VIRL), a leading provider of best-in-class semiconductor IP platforms, have entered into a licensing and royalty-bearing agreement that provides for the delivery of Virage Logic's Technology-Optimized Platforms for DongbuAnam's new 0.13-micron CMOS processes. This agreement marks the first commercial IP support for DongbuAnam's new 0.13-micron process offering.

Under the terms of the agreement, DongbuAnam customers will have access to Virage Logic's Technology-Optimized Platforms - comprised of highly differentiated, silicon-proven embedded memories, standard cell logic libraries and I/O libraries - on DongbuAnam's 0.13-micron generic (G) and 0.13-micron low power (LP) CMOS processes. In addition, customers with designs featuring Virage Logic memory IP on the 0.18-micron process can now take their designs to DongbuAnam in order to take advantage of the price and performance benefits realized on DongbuAnam's 0.18-micron process technology.

"Virage Logic's focus on delivering highly differentiated IP that is silicon-proven and backed by superior customer support makes them an ideal partner for DongbuAnam," said Jae Song, executive vice president of worldwide marketing, DongbuAnam Semiconductor. "As we introduce our first 0.13-micron offering, the availability of Virage Logic's Technology-Optimized Platform on this new process will enable us to provide our growing worldwide customer base with a competitive advantage in terms of cost, performance, time-to-market and time-to-volume."

"DongbuAnam's rapid rise to becoming one of the leading foundries in the marketplace is very impressive and we look forward to working closely with them to service the needs of the rapidly growing global electronics market," said Adam Kablanian, Virage Logic president and CEO. "They are focused on providing a superior, comprehensive solution to their customers and we believe our Technology-Optimized Platforms will help them accomplish that goal. Our IP offering provides a customized portfolio grounded in advanced technology that addresses such needs as density, performance and power while providing a means to reduce silicon and system costs."

Technology-Optimized Platforms
Building on its technology and market leadership position, Virage Logic's Technology-Optimized Platforms aim to meet the critical requirements of reducing design time, silicon area and design risk; while boosting performance and enhancing manufacturing yields for a particular foundry or integrated device manufacturer (IDM) process. By providing silicon-proven, fully characterized IP that is tuned to all major EDA design tools and 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 the Area, Speed and Power (ASAP) Memory^TM High-Density (HD) memories, the ASAP Logic^TM HD standard cell libraries, and the company's Base I/O libraries. Technology-Optimized Platforms help customers expedite the creation of next-generation SoCs by providing silicon-proven IP optimized for a targeted technology node and process. Technology-Optimized Platform users have optional access to Virage Logic's rich portfolio of highly differentiated IP including the Self-Test and Repair (STAR) Memory System^TM, the ASAP Memory High-Speed (HS) and Ultra-Low-Power (ULP) product lines, the ASAP Logic Ultra-High-Density (UHD) Standard Cell Libraries, the patented ASAP Logic HD and HS Metal Programmable Cell Libraries, and access to specialty I/Os such as SSTL-2, HSTL-2, PCI and PCI-X, and USB1.1. 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 in order to offer customers maximum flexibility in their design choices.

Availability
Virage Logic's Technology-Optimized Platforms for DongbuAnam's 0.13-micron CMOS process will be available in April 2004.

About DongbuAnam Semiconductor
DongbuAnam Semiconductor, the world's fourth largest pure-play wafer foundry, specializes in world-class CMOS wafer processing that enables system-on-a-chip implementations that integrate the most advanced logic, analog, and mixed-signal technologies. Through close working relationships with strategic partners, DongbuAnam offers a broad range of services that augment its world-class wafer manufacturing capabilities. These include advanced design support, access to a wide variety of intellectual property, and prototyping, as well as backend assembly, packaging and testing. DongbuAnam is a key global supplier within Korea's well-established semiconductor manufacturing infrastructure. For more information, visit www.viragelogic.com or call (877) 360-6690 toll free or (510) 360-8000.

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

Kerry McClenahan
McClenahan Bruer Communications
503-546-1002
kerry@mcbru.com

SAFE HARBOR STATEMENT FOR VIRAGE LOGIC 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 Virage Logic's business outlook, new products and new 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 maintain and develop new relationships with third-party foundries, adoption of 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, business and economic conditions generally and in the semiconductor industry in particular, competition in the market for embedded memories 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 press releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.