Bell Labs Design Automation and Silicon Valley Research Strike Alliance for Deep Submicron Verification Products and Advanced Area-Based Layout Tools; $5 Million Deal Expands Bell Labs Design Automation Commercialization Push, Strengthens Silicon Valley Research's Position in Deep Submicron.

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--May 28, 1996--Silicon Valley Research, Inc. (NASDAQ: SVRI) today announced an agreement with Bell Labs Design Automation (BLDA), a division of Lucent Technologies, Inc. (NYSE: LU), whereby SVR will acquire the exclusive marketing rights to BLDA's CLOVER line of deep submicron verification products worldwide, with the exception of Japan and Taiwan, where BLDA has established distributors.

In these two countries, BLDA will work with SVR and its current distributors to expand CLOVER sales. As part of this agreement, BLDA will purchase SVR products and distribute those products within Lucent Technologies.

CLOVER is an integrated collection of software product modules with a unique solution to the VLSI layout verification problem of deep submicron designs. Users can purchase separate modules for the various aspects of layout verification their specific design project may require. Furthermore, the hierarchical version of the CLOVER modules requires no extra migration effort from flat designs, and all modules are fully compatible with Cadence's DRACULA format.

In addition to leading-edge hierarchical checking, CLOVER includes extremely fast and accurate 3-D extraction -- a required technology for deep submicron designs. Although originally developed for internal use at AT&T, BLDA has spent two years developing an easy-to-use interface to make this advance technology available to a broader market.

"For those focused on deep submicron design, the CLOVER verification technology is a great strategic fit with our area-based physical design tools," said Glenn E. Abood, President and CEO of SVR. "We see this as the beginning of a long-term strategic relationship with BLDA, where each company can leverage the other's technology to solve the complex problems of today's deep submicron designs."

"CLOVER's advanced technology will enable our customers to meet the challenge of extracting and verifying multi-million gate designs," added Art Monk, SVR's Vice President of Marketing and Corporate Development. "CLOVER's proven market success in the Far East is a testament to its superior technology for flat and hierarchical LVS/DRC and its highly accurate parasitics extraction."

"We are excited about this relationship and look forward to working with SVR as a strategic partner," said William J. Evans, Director of Bell Labs Design Automation. "They are an outstanding company with great technology. A partnership with SVR is of strategic importance to both companies and will be a tremendous advantage in bringing CLOVER to the worldwide market. It's a win-win agreement."

Bell Labs Design Automation provides tools for verifying high-performance systems on silicon in the communications and computer markets. BLDA is a division of Bell Laboratories, the corporate research arm of Lucent Technologies, Inc.

Silicon Valley Research offers a broad line of integrated placement, routing and floorplanning physical layout software products which enable electronics manufacturers to achieve improved semiconductor performance and smaller chip size for their integrated circuit designs. Headquartered in Mountain View, Calif., the Company has sales and support offices in the United States and Asia. Silicon Valley Research's common stock is traded on the Nasdaq National Market under the symbol SVRI. -0-

Note to Editors: DRACULA is a Registered Trademark of Cadence Design Systems.

CONTACT: Silicon Valley Research, Inc.

Art Monk, 415/254-4327

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Bell Labs Design Automation

Sanjiv Taneja, 908/582-7002

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New Venture Marketing

Robin D. Stavisky, 415/473-9990

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CMC Communications

Caroline Murphy, 415/324-8819