Under terms of an asset purchase agreement, VeriSilicon has acquired certain assets related to ZSP licensable cores, development tools, standard products and software and associated issued and pending patents. The majority of the ZSP unit workforce, including engineers, software developers, sales and marketing, customer service and support representatives has joined VeriSilicon and will continue to develop and market the ZSP Digital Signal Processing technology.

"Through the VeriSilicon acquisition of the ZSP assets, we have assured the continued availability of this important technology to customers and the marketplace," said Jeff Richardson, executive vice president, Custom Solutions Group, LSI Logic. "We are also pleased that the majority of the ZSP workforce have joined VeriSilicon and will continue to play a key role in the success of the products and technology."

The support of all existing contractual obligations will be provided by VeriSilicon without changes. Additionally, VeriSilicon has licensed a number of the ZSP cores to LSI, for use in existing and future products.

VeriSilicon will integrate ZSP within the existing company organization and, by leveraging on the synergies is planning to increase the development activity to accelerate the ZSP roadmap with the introduction of new licensable cores, silicon design reference platforms and standard products.

Commenting on the acquisition, Dr. Wayne Dai, chairman, president, and CEO of VeriSilicon said: "This strategic acquisition is positioning VeriSilicon ahead of the game in the emerging design foundry market. The combination of the ZSP IP portfolio and solutions for vertical applications with our existing full range of horizontal IPs, multi-fab libraries, design service and turnkey capabilities, is enabling a unique value proposition for our customers worldwide. VeriSilicon will be able to serve them from specification to mass production as a value-add one stop shop in the wireless, multimedia and VoIP markets for cost competitive, system level SoC designs."

About ZSP(R)

ZSP is a leading licensor of signal processing cores and solutions. With more than 50 customers worldwide, the ZSP processor architecture enables customer innovation as the DSP of choice in many key vertical markets including 3G wireless handsets, multimedia and networked voice appliances. The ZSP roadmap offers a range of software compatible cores delivering performance points that meet the cost, power and efficiency constraints of today's SoC designs. A number of standard products are also available for VoIP applications and lower volume designs. ZSP Solution Partners augment the technology with world-class software tools, EDA modeling support and a large portfolio of application software. ZSP customers include Broadcom, Marvell, IBM, Renesas, Yamaha, Huawei Technologies, Datang Microelectronics, Murata, AVID Electronics Corp. and many other world-class companies. More information is available at www.zsp.com.

About VeriSilicon

VeriSilicon Holdings Co., Ltd. is a leading world class ASIC design foundry providing libraries, semiconductor IPs, design and turnkey manufacturing services with multi-fab capability and on process technologies down to 90nm. VeriSilicon has achieved first silicon success and entered volume production of many complex, multi-million gates SoCs using the leading wafer foundries in APAC and China. VeriSilicon has operations in US, China, Taiwan, Japan, France, and Korea. Over 500 customers worldwide have licensed VeriSilicon IPs and Standard Design Platforms. In 2005, VeriSilicon was ranked number three in Deloitte Technology Fast 50 China, the top 50 fastest-growing technology companies in China and number six in Deloitte Fast 500 Asia Pacific, the top 500 fastest-growing technology companies in Asia Pacific. VeriSilicon was also named one of the Red Herring 100 Private Companies of Asia, and selected as one of the EE Times 60 Emerging Startups. More information is available at www.verisilicon.com.

About LSI Logic

LSI Logic Corporation is a leading provider of silicon-to-system solutions that are used at the core of products that create, store and consume digital information. LSI offers a broad portfolio of capabilities including custom and standard product ICs, host bus and RAID adapters, storage area network solutions and software applications. LSI products enable leading technology companies in the Storage and Consumer markets to deliver some of the most advanced and well-known electronic systems in the market today. More information is available at www.lsi.com.

CONTACT: Federico Arcelli, corporate VP of WW marketing of VeriSilicon, +33-4-9710-0138, or Email Contact

Web site: http://www.versilicon.com/