Arasan Chip Systems Celebrates 10 Successful Years in the IP Industry.

SAN JOSE, Calif. -- Arasan Chip Systems, Inc ("Arasan"), a pioneer in the IP-business, proudly celebrates 10 years in the industry. Founded in 1995, Arasan launched its first IP product, the USB 1.0 Device Core, in 1996. Arasan has over 250 licensees today and a portfolio of over 50 products with worldwide support. Arasan has now established itself as one of the leading players in the IP Industry. Arasan also entered into the Semiconductor business in 2002 with the company's line of silicon proven ASSP IP for customers looking for standard product enabling low cost product development.

Research shows that one of the top three factors driving the decision to source IP from a third-party provider is a broad portfolio of pre-verified IP, worldwide sales and support network, and long-term stability of the IP provider. "Celebrating 10 years is a major achievement for any company, especially in the ever changing high tech industry. Our focused approach and core competency of delivering Quality, Total Solutions and Excellent Support are the reasons for our success," says Kathiresan Ganesan, Chairman of the Board and Managing Director of Arasan Chip Systems.

To commemorate 10 successful years, Arasan is launching its new brand identity, advertising campaign and website. Arasan is constantly reinvesting in improving the technology and support offered to its customers. Because of Arasan's constant reinvestment in technology, several new IP products will also be launched during Q3 of this year. Arasan will also be announcing the Words First SDIO Combo Controller ASSP with removable memory.

Semico Research has forecasted the third-party IP provider market to grow to $2.5B by 2007, and intellectual property (IP) is the next "killer app" catalyst for semiconductor industry growth. Also according to Semico Research, the IP market will grow at a compound annual growth rate of 23.2 percent, reaching more than $4.1 billion by 2009. It is now common practice for market leaders to rely on third-party IP to help them meet their time-to-market, cost, performance, and time-to-volume requirements.

Arasan Chip Systems is a privately owned company and is part of the Tuticorin Spinning Mills group of companies. For the Fiscal Year 2005, the company had a net profit of US$1.65 Million. The company plans to go public in 2008.

Arasan Chip Systems thanks all its licensees for contributing to our success.

About Arasan

Arasan Chip Systems Inc., founded in 1995, is a leading supplier of Reusable Intellectual Property (IP's) cores and associated design services to the Electronic Design Community Worldwide. Arasan's product portfolio is focused on Bus Interfaces and includes IP's for USB, PCI, SDIO technologies and mobile storage. Arasan's products and services enable businesses to develop and leverage product design and development. Arasan Chip Systems is a Member of the CE-ATA Work group and has been an executive member of MMC Association since 2003. Arasan is headquartered in San Jose, California, with design centers in India and support options available Worldwide.