EL SEGUNDO, Calif. and ESPOO, Finland- Sept. 6, 2005 - Applied Wave Research, Inc. (AWR®) and APLAC Solutions Oy (APLAC) today announced that AWR has acquired APLAC, which develops and markets simulation and analysis software for analog and radio-frequency (RF) design. APLAC's RF design technology has been widely used by Nokia Mobile Phones for years, and has been used in designing over 30 percent of all mobile phone RF integrated circuits (ICs) worldwide. The merger of the two electronic design automation (EDA) software developers was driven by key customer demand for APLAC's high-performance, foundry-approved circuit simulation strength combined with the open, integrated AWR Design Environment™ technology.

"APLAC Solutions is a world class R&D organization with compelling expertise in simulation and modeling," said James Spoto, AWR president and CEO. "The integration of our R&D teams along with our combined EDA strengths will accelerate AWR's already rapid rise in the RF EDA space. We are pleased to welcome our new team members and customers, and look forward to the combined organization's continued delivery of best-in-class simulation technology, complete RF design solutions, and comprehensive support and services to our customers worldwide."

Open Environment Facilitates Easy Integration
AWR is uniquely positioned in the EDA industry for strategic technology alliances such as the APLAC acquisition. The advanced, object-oriented architecture of AWR's high-frequency design platform and underlying unified data model make it a powerful and open design environment for easy integration of third-party tools. The inherently open architecture makes the task of integrating the APLAC simulation engine fairly easy. AWR and APLAC are proud to announce that the APLAC RF design tool has already been integrated into AWR's Microwave Office® design suite and beta copies are already being successfully installed and tested by key customers.

"The merger of Applied Wave Research and APLAC Solutions is an RF designer's match made in heaven," said Olli Pekonen, APLAC managing director and CEO. "Communications designs have become incredibly complex and our customers, who include the most prominent mobile phone manufacturers in the world, need a powerful simulation solution that also offers easy integration with best-in-class, third-party tools and an intuitive, open environment. The combination of APLAC's incomparable RF simulation technology and AWR's unique, open design environment provides our designers with the best of both worlds: powerful, speedy simulation and an easy-to-use, integrated design platform."

Expansion of AWR Presence in Europe
The merger establishes a major AWR research and development center in Europe and AWR expects that the acquisition will be a springboard for significant expansion of the company's regional presence. The integration of the two design tools will provide RFIC designers with a much-needed unified electro-physical design flow, as well as approved simulation models and process design kits (PDKs) from established European semiconductor foundries such as ST Microelectronics, Infineon Technologies, and Philips Semiconductor.

APLAC will be a wholly owned subsidiary of AWR and will be called AWR-APLAC Oy. AWR intends to retain all APLAC employees and the APLAC simulation technology will continue to be supported and enhanced in Finland as an independent simulation platform.

Availability
First phase beta copies of AWR's Microwave Office software integrated with the APLAC RF design tool are available immediately to existing customers. The APLAC simulation technology will also be accessible in the upcoming new release of Microwave Office design suite.

About Applied Wave Research, Inc.
Applied Wave Research is a leading supplier of high-frequency electronic design automation (EDA) products for the design of: wireless telecommunications equipment, semiconductors, high-speed computers, networking systems, automotive mobility systems, and a variety of other electronics-based products. AWR is a privately held company and has development offices, sales offices, training centers, and global distribution. AWR launched its first product in 1998 and today has over 500 customer companies worldwide, including virtually every major high-frequency electronic component and system supplier. The company is headquartered at 1960 East Grand Avenue, Suite 430, El Segundo, California 90245. For more information about AWR and the company's products, please visit www.appwave.com or call 310-726-3000.

About APLAC Solutions Oy
APLAC Solutions Oy develops and markets simulation and analysis software for analog and RF designers. APLAC's simulation engine, the tool that made the Scandinavian mobile phone industry's success story possible, has been used in designing over 30 percent of all mobile phone RFIC circuits. Innovative applications of the software are also found in micro-electro-mechanical systems (MEMS) and acoustic design. APLAC software enhances cost effectiveness and shortens design time. Its capabilities range from ICs to circuit board- and system-level design, from direct current to RF and microwave frequencies. For more information about APLAC and the company's products, please visit www.aplac.com or call +358 9 540 450 00.

AWR, the AWR logo, and Microwave Office are registered trademarks and AWR Design Environment is a trademark of Applied Wave Research, Inc. All other registered marks are the property of their respective holders.

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