RMI now owns and operates the Alchemy family of MIPS-Based(TM) power- optimized, high performance microprocessors. The acquisition forms the basis for a broad strategic relationship between AMD and RMI and accelerates RMI's entry into the fast-growing Consumer Electronics Market. By combining the Alchemy product line with the existing XLR(TM) Processor and Orion(TM) Processor families, RMI boasts the industry's strongest MIPS-Based portfolio that scales from consumer mobile devices to high-end information infrastructure equipment.

"We are pleased to announce the closing of the Alchemy transaction and believe that this addition will significantly accelerate our growth, broaden our customer base, and deepen our portfolio of next generation silicon solutions for consumer and communications markets," stated Atiq Raza, chairman and chief executive officer, RMI. "We are also excited to announce key members of the team bringing seasoned experience in technology and consumer electronics helping RMI continue evolving into a major semiconductor player."

As part of the transition, RMI has opened an office in Austin, TX and has appointed industry veterans Greg Hoeppner, former co-founder and original engineering leader of Alchemy Semiconductor and Mike Wodopian to manage the recently formed Alchemy Solutions Group. The Alchemy Solutions Group at RMI includes over 20 full-time dedicated team members with Alchemy product experience to further the development and support of the business.

Greg Hoeppner, vice president of engineering, brings expertise in microprocessor development and engineering. Hoeppner's most recent role was at AMD, where he was corporate vice president, Manufacturing and Engineering Operations. Prior to joining AMD (through the acquisition of Alchemy in 2002), Hoeppner was a co-founder of Alchemy Semiconductor and served in engineering roles at Cadence Design Systems, DEC and IBM. Hoeppner obtained a BSEE from Purdue University.

"I am delighted to return and I am excited that RMI will continue to invest in the product line and the business in which I helped start," said Greg Hoeppner, vice president of engineering, Alchemy Solution, RMI. "We will be able to take advantage of the design expertise at RMI to integrate and increase the capabilities of the product line and to deliver a compelling roadmap for the Alchemy Solutions Group."

Mike Wodopian, vice president and general manager, brings consumer electronics experience in marketing, business development, and general management. Wodopian joins RMI from SigmaTel, where he served as senior vice president and general manager. Prior to joining SigmaTel, Wodopian's experience included management roles at Intel, Level One Communications and AMD. Wodopian obtained a BSEE from the University of Connecticut.

"I am excited to join such a successful team that has already shown great success in the consumer and communications markets," said Mike Wodopian, vice president and general manager, Alchemy Solutions, RMI. "I believe that through investment in the business, we will be able to grow revenue and market share significantly with the current products and by advancing the product line."

The Alchemy product family consists of a portfolio of processors that are designed to address customer needs for power-optimized, high-performance, embedded solutions. The technologies offered in the Alchemy processor line cover a wide range of applications targeted at multimedia, access and computing devices as well as growth opportunities in the communications and consumer markets.

About Raza Microelectronics, Inc. (RMI)

RMI(R) is a fabless semiconductor company with more than 190 employees dedicated to the design, development and sale of its cutting-edge semiconductor products. The company offers a rich portfolio of solutions, led by the XLR(TM) Processor family -- a power-efficient solution optimized for embedded communications and networking applications -- for the next-generation Information Infrastructure. The company is headquartered in Cupertino, CA with subsidiaries in Beijing and Shenzhen, China, Tokyo, Japan, Seoul, Korea and Bangalore, India. More information about Raza Microelectronics, Inc. can be found on the company's website at www.razamicroelectronics.com.

(C) Copyright 2006 Raza Microelectronics, Inc. All rights reserved. Raza Microelectronics, RMI, the RMI logo, XLR, Orion and the other trademarks named on the RMI website are trademarks of Raza Microelectronics, Inc. AMD, the AMD Arrow logo, Alchemy, and combinations thereof are trademarks of Advanced Micro Devices, Inc. All other trademarks are the property of their respective owners.

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