Major Design Win for Tensilica’s Xtensa IP

Tensilica Processor Technology to Power Hughes Network Systems’ Next Generation Spaceway Satellite Network

Santa Clara,Calif. – May 29, 2001 ... Tensilica Inc., the Santa Clara,California (USA) provider of configurable processor technology, today announced that Hughes Network Systems (HNS) has licensed the company’s Xtensa technology. The multi-year, multi-million dollar deal is Tensilica’s most significant since the company’s inception.

According to Hughes Network Systems, the world’s leading provider of Broadband Everywhere services and products for consumers and enterprises, Xtensa cores will be employed in various elements of Spaceway™, the next generation satellite-based broadband network that will provide very high bandwidth, two-way communications between customer (user) sites via geostationary satellites. The Spaceway North American network includes the initial development and deployment of three satellites, Network Operation Centers (NOCs), and multiple versions of satellite terminals providing bandwidth on demand for a variety of broadband and multimedia applications to enterprise and consumer sites.

“Spaceway is our highest priority program, said Dan Fraley, Hughes Networks Systems’ senior -vice president of engineering, “and its success is crucial to maintaining HNS's position as the worldwide leader in satellite-broadband technology. Spaceway's challenging requirements necessitated a search for cutting-edge technologies to achieve the project's aggressive performance goals.

According to HNS, the system’s architecture required a System on Chip (SOC) containing multiple unique processors, each precisely tuned to its assigned function. “After an extremely thorough evaluation of processors from several industry-leading companies, it was clear to us that Tensilica’s Xtensa provided the performance, time-to-market, and verification specifications that we required,” Fraley concluded.

HNS will use numerous uniquely configured Xtensa processors in their SOCs. These will provide all of the processing requirements including high speed real-time data stream management plus running a leading RTOS on an Xtensa core configured as a high-end control processor.

Chris Rowen, Tensilica’s president and CEO, said, “This design win is truly significant for the company. Our technology was chosen over that offered by a field of older, larger, but well-qualified processor suppliers. I think it clearly confirms that the configurable processor approach for high-volume embedded systems is real and has become a compelling option for tomorrow’s electronic products whether they are hand-held wireless devices, PDAs, or digital broadband satellite systems.”

About Hughes Network Systems/Spaceway

A leading global provider of broadband communications, HNS has delivered communications solutions to enterprises for nearly 30 years. HNS provides products and services that support a growing suite of broadband applications in over 85 countries worldwide. Headquartered in Germantown,Maryland, near Washington, DC, the company has sales and support offices around the globe. HNS is a unit of Hughes Electronics Corporation, the world’s leading provider of digital television entertainment, satellite services and satellite-based private business networks.

Spaceway is a high-speed, broadband communications system scheduled for North American service launch in 2003. This next-generation broadband technology system will provide bandwidth-on-demand capability by employing satellites with innovative on-board digital processors, packet switching and spot beam technology. Boeing Satellite Systems is building the Spaceway satellites for North America under contract from HNS.

The earnings of Hughes Electronics, a unit of General Motors Corporation, are used to calculate the earnings per share attributable to the General Motors Class H common stock (NYSE: GMH). For additional information, visit the HNS web site atwww.hns.com.

About Tensilica

Tensilica was founded in July 1997 to address the fast-growing market for configurable processors and software development tools for high volume, embedded systems. Using the company's proprietary Xtensa Processor Generator, system-on-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.; Stockholm, Sweden; Taipei, Taiwan, R.O.C.; 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 on the World Wide Web.

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Editors' Notes:

“Spaceway” and “Broadband Everywhere” are registered trademarks of Hughes Electronics Corporation.

"Tensilica" is a registered trademark and "Xtensa" is a trademark belonging to Tensilica Inc. All other registered trademarks or trademarks are property of their respective owners.

Tensilica’s announced licensees are, in alphabetical order, BerkeleyWirelessResearchCenter, Cisco Systems, Conexant Systems, Fujitsu Limited, Galileo Technology, Hughes Network Systems, Mindspeed Technologies, National Semiconductor, NEC Networks, NEC Solutions, NTT, ONEX Communications, TranSwitch Corporation and ZiLOG.

Visit Tensilica at DAC 2001, June 18 – 21, Las VegasConvention Center, booth number 3739