``Stunning'' Sales Increase Makes Cypress ``Big Winner'' in NSEs, Analyst Says; Company More Than Doubled Network Search Engine Market Share in 2003.

Business Editors

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 17, 2004

Cypress Semiconductor Corp. (NYSE:CY) more than doubled its network search engine (NSE) market share in 2003, a leading semiconductor market intelligence firm indicated recently. Cypress market share increased from 16 percent to 33 percent in 2003, according to a report by iSuppli principal analyst Betsy Van Hees.

"In 2003, Cypress's NSE sales increased by an impressive 140 percent to $28.3 million, while its nearest competitor's sales rose by a relatively meager three percent to $42.3 million," Van Hees said. iSuppli estimates the size of the total NSE market -- including NSEs, binary content addressable memories (CAMs) and ternary CAMs -- was $85.7 million in 2003 up 17.7 percent from $72.7 million in 2002. The iSuppli report was summarized on the Silicon Strategies website at www.siliconstrategies.com. Silicon Strategies is a part of the EE Times information network.

"The 2003 NSE revenue numbers reflect the fact that Cypress has taken a substantial lead in the non-proprietary or commercial market," said Ralph Schmitt, vice president of marketing and sales at Cypress. "Five years ago, the Layer-3 switch segment represented the entire NSE market. Now a broad range of applications and companies are using these products. In the fourth quarter, 67 of our NSE designs with 30 different customers were shipped. Looking forward we see NSEs making a significant impact on DSLAMs, CMTS, storage-switches, security systems and wireless basestation applications. "

Cypress attributes its outstanding growth to three key factors:

-- Having the highest-performance NSEs on the market -- running

at 266 million searches per second;

-- Being the only company to offer a comprehensive search system

solution, including ternary content addressable memories

(TCAM)-based NSEs, algorithmic-based NSEs and easy-to-use

design software;

-- Building upon its considerable share of the proprietary TCAM

space to dominate the commercial market.

About Cypress

Cypress Semiconductor Corp. (NYSE:CY) is Connecting From Last Mile to First Mile(TM) with high-performance solutions for personal, network access, enterprise, metro switch and core communications-system applications. Cypress Connects(TM) using wireless, wireline, digital and optical transmission standards, including USB, Fibre Channel, SONET/SDH, Gigabit Ethernet and DWDM. Leveraging its process and system-level expertise, Cypress makes industry-leading physical layer devices, framers and network search engines, along with a broad portfolio of high-bandwidth memories, timing technology solutions and reconfigurable mixed-signal arrays. More information about Cypress is accessible online at www.cypress.com.

Cypress and the Cypress logo are registered trademarks of Cypress Semiconductor Corporation. "Connecting From Last Mile to First Mile" and "Cypress Connects" are trademarks of Cypress. All other trademarks are the property of their respective owners.