Cadence Boosts ST Microelectronics' Deep Submicron Design Capability; Company Equips ST Designers to Work With 0.15 Micron Technology.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 30, 1999--

Cadence Design Systems, Inc. (NYSE:CDN), the world's leading supplier of electronic design products and services, announced the extension of its long-term relationship with ST Microelectronics through the signing of a multi-million dollar, multi-year agreement earlier this year to provide design tools for the development of deep submicron (0.15 micron) integrated circuits (ICs) for the telecommunications, computer, consumer, automotive, and industrial sectors.

ST Microelectronics' Central Research and Development operation, based in Agrate, Italy and Grenoble, France, is purchasing Cadence software licenses in order to support its entire design team. The agreement includes a comprehensive portfolio of Cadence electronic design automation tool suites such as Envisia(TM) Silicon Ensemble(TM) ultra place-and-route, IC Craftsman(R) layout automation tools, Affirma(TM) Analog Artist(R) design environment, and Assura(TM) interactive physical verification products.

The design tools will support the design and development of ICs on a 0.15-micron effective gate length (equivalent to 0.18 micron drawn) manufacturing process targeted at high-performance and high-power applications. This is one of the most advanced and demanding design environments currently in use by the electronics industry.

"As a leading-edge semiconductor manufacturer that is constantly looking to push the boundaries of IC design, ST Microelectronics needs sophisticated design tools," said Shane Robison, president of the Design Productivity Group at Cadence. "ST's commitment builds on a solid, long-term technology partnership and represents a considerable investment in the Cadence tool environment. The agreement reflects the advantage we bring to customers by offering broad, comprehensive product suites."

Cadence and ST Microelectronics have enjoyed a collaborative relationship dating back to 1985. Since 1997, the two companies have been jointly developing a methodology for signal integrity analysis and correction for deep submicron technology at ST Microelectronics' central research facility in Grenoble. As a result of this collaboration, by the end of this year, ST will be one of the first companies worldwide implementing a true design methodology aimed at overcoming signal integrity problems with new 0.18 micron and 0.15 micron design kits based on new Cadence technology.

"Collaborative relationships with companies such as Cadence are key to ST Microelectronics maintaining its position as a leading-edge semiconductor manufacturer," said Phillipe Magarshack, design automation and libraries program director at ST Microelectronics. "Access to the most advanced deep submicron tool suites from Cadence are fundamental to our strategy for keeping our 0.18 micron, 0.15 micron and 0.12 micron design flows under control, and remaining at the forefront of IC design well into the new millennium. In the deep submicron world, parasitic effects, such as cross-talk or electro-migration, must be prevented during the design process instead of only being analyzed in a post-layout task. We believe that the work we have done in common with Cadence to this effect will provide a best-in-class EDA solution to this challenge."

About Cadence

Cadence Design Systems, Inc. is the largest supplier of electronic design automation products, methodology services, and design services used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronics-based products.

With more than 4,000 employees and 1998 annual sales of $1.2 billion, Cadence is headquartered in San Jose and has sales offices, design centers, and research facilities located around the world. More information about the company, its products and services may be obtained from the World Wide Web at http://www.cadence.com.

About ST Microelectronics

ST Microelectronics (formerly SGS-THOMSON Microelectronics) is a global independent semiconductor company, whose shares are traded on the New York Stock Exchange, on the Bourse de Paris and on the Milan Stock Exchange. The company designs, develops, manufactures and markets a broad range of semiconductors, integrated circuits (ICs), and discrete devices used in a wide variety of microelectonics applications including telecommunications, computer systems, consumer products, automotive products, and industrial automation and control systems. Further information on ST can be found at www.st.com

Note to Editors: Cadence, the Cadence logo, Analog Artist, and IC Craftsman are registered trademarks; and Affirma, Envisia, and Silicon Ensemble are trademarks of Cadence Design Systems, Inc. All others are properties of their respective holders.