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January 30, 2001

Fujitsu Renews, Upgrades Tensilica License

TOKYO - Jan. 30, 2001 --- Tensilica Inc., the leading supplier of configurable microprocessor core intellectual property (IP), announced today that Fujitsu Limited has upgraded its license to a multiple use, time-based agreement. The new pact covers Tensilica's latest generation, Xtensa III, and is renewable annually.

According to Fujitsu, one of the most important features of Xtensa technology is the powerful Tensilica Instruction Extension ("TIE") compiler that allows customers to add proprietary extensions to the processor to achieve significant performance benefits.

Mr. Toshi Ikezawa, General Manager (ASIC Project) of the Fujitsu Communication Circuit & Device Technology Division, Transport Systems Group, said, "We had been seeking a technology for developing an application optimized proprietary processor, and we were impressed that Xtensa simultaneously provided both a proprietary processor by adding TIE Instructions, and an excellent application software development environment. During our initial evaluation, we confirmed that Tensilica's claimed benefits were true, and that Xtensa would both shorten our product development time and reduce our development cost. We will adopt Xtensa to a broad line of products, including WDM, Sonet Optical Transmission Systems and WCDMA Communication Systems."

Bernie Rosenthal, Tensilica's vice president of marketing and business development, said, "Fujitsu is a leader in Transport System Technology. We are honored that they have chosen to upgrade their license agreement with us. We look forward to working with them under this broadened relationship."

About Fujitsu

Fujitsu Limited (TSE: 6702) is a leading provider of Internet-based information technology solutions for the global marketplace. Comprising over 500 group companies and affiliates worldwide -- including ICL, Amdahl and DMR Consulting -- it had consolidated revenues of 5.26 trillion yen ($49.6 billion) in the fiscal year ended March 31, 2000. Fujitsu's pace-setting technologies, world-class computing and telecommunications platforms, and global corps of over 60,000 systems and services experts make it uniquely positioned to unleash the infinite possibilities of the Internet to help its customers succeed. Altogether, the Fujitsu Group has 188,000 employees and operations in over 100 countries. Internet: http://www.fujitsu.com/

About Tensilica

Tensilica was founded in July 1997 to address the fast-growing market for application-specific microprocessor cores and software development tools for high volume, embedded systems. Using the company's proprietary Xtensa Processor Generator, system-on-a-chip (SOC) designers can develop a processor subsystem hardware design and a complete software development tool environment tailored to their specific requirements in hours.

Tensilica's solutions provide a proven, easy-to-use methodology that enables designers to achieve optimum application performance in minimum design time. The Company is engaged in research, development, and customer support from its offices in Santa Clara, California, Burlington, Massachusetts, Princeton, NJ, Houston, Texas, Oxford, U.K. and Yokohama, Japan. Tensilica is headquartered in Santa Clara, California (95054) at 3255-6 Scott Boulevard, and can be reached at (408) 986-8000 or via www.tensilica.com.

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"Tensilica" is a registered trademark and "Xtensa" is a trademark belonging to Tensilica Inc. All other company names and other names mentioned herein may be trademarks or registered trademarks of their respective owners.

Tensilica's announced licensees are, in alphabetical order, Berkeley Wireless Research Center, Cisco Systems, Fujitsu Limited, Galileo Technology, National Semiconductor, NEC Corporation, NTT, ONEX Communications, Osaka and Kyoto Universities, TranSwitch Corporation and ZiLOG.

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“It is faster and easier to design complex SOCs using Xtensa configurable processors - especially when using the XPRES Compiler - than to hand-code complex SOC design elements in hardware using traditional RTL methods. Plus the Xtensa processors are programmable, so it will be valuable for future products and applications.”

- Katsuhiko Nishizawa, general manager of the IJP Design Department of the Imaging Products Operations Division of Seiko Epson Corporation.