AccelChip Raises $6.652 Million in Series B Funding; Investors See Value in Algorithm-to-Hardware Solution for the DSP Market.

Business Editors

MILPITAS, Calif.--(BUSINESS WIRE)--May 5, 2003

AccelChip Inc., the leading provider of high-level synthesis tools for DSP design, today announced the closing of its second round of funding in the amount of $6.652 million. The Series B round was led by InterWest Partners with participation from Greylock Partners, Xilinx, Arch Development Partners, and several private investors.

Since its introduction in September of 2002, AccelChip's AccelFPGA high-level synthesis tool has been adopted by DSP algorithm developers worldwide in the defense, communications, transportation and consumer markets to address a critical productivity barrier in the DSP design process. AccelFPGA is the only EDA tool that synthesizes the MATLAB(R) language, which is used by the overwhelming majority of DSP designers for modeling and analysis of DSP algorithms. AccelFPGA synthesizes MATLAB designs, automating the creation of synthesizable RTL models and simulation testbenches compatible with all FPGA design flows and creating the industry's first bridge between the DSP and FPGA design environments. By enabling a true top-down DSP design process, AccelChip allows DSP algorithm developers to realize FPGA implementations quickly and reliably, shaving months off the traditional manual design cycle.

"FPGAs are increasingly proving to be the best hardware implementation choice for high-performance DSP algorithms, and yet few if any commercial EDA solutions exist that link the disparate DSP and FPGA design worlds," said AccelChip CEO and EDA veteran Dan Ganousis. "We've staked a claim to that territory by delivering the first high-level synthesis tool for the MATLAB language, and are pleased at the support we've garnered from the investment community and our strategic partners."

AccelChip will use its new capital to expand its product development group, which is located in Lake Oswego, Ore. and is headed by CTO and synthesis expert Michael Bohm. The funds will also be used to develop a marketing organization, expand AccelChip's sales force internationally under the leadership of Rick Carlson, former vice president of sales at Synplicity, and establish a consulting services group to service and support AccelChip's customers worldwide.

"We are excited about AccelChip because their products solve a crucial market need using innovative technology," said Victor Westerlind, InterWest principal. "Look around and you will notice digital signal processing applications everywhere. Signal processing has taken off and FPGA's are becoming the platform of choice, creating a high growth market for AccelChip's DSP design tools."

"As a seed and pre-seed venture fund we are very pleased that after leading the initial funding of this technology from its inception at Northwestern University, we were able to staff a truly outstanding management team that has successfully launched the company," said Robert A. Schriesheim, Managing General Partner at Arch Development Partners. "The new investment group represents a combination of the very best strategic partner - Xilinx - with experienced EDA venture investors led by Interwest and Greylock. This high quality group of investors will undoubtedly provide invaluable leadership for the company."

AccelChip recently relocated its company headquarters to Milpitas, Calif. from Schaumburg, Ill. to facilitate closer working relationships with its strategic partners in the EDA, DSP and FPGA markets.

About AccelChip

AccelChip Inc., founded in 2000 and headquartered in Milpitas, Calif., develops and markets design tools that enable true, top-down DSP design. AccelChip's radically different EDA solutions provide the industry's first link from DSP to FPGA design environments, taking DSP algorithm developers from MATLAB to FPGA implementation automatically. For more information, visit the AccelChip Web site at www.accelchip.com or call [phone].

More information about the investors can be found at www.interwest.com, www.greylock.com, www.archdevelopmentpartners.com, and www.xilinx.com.