Cadence Services Instrumental to TransChip in Developing the World's Most Compact Single-Chip Imaging Camera Solution for Multimedia-Enabled Devices.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--June 30, 2003

From Initial Design to Silicon Tape-Out in Less Than Four Months

Cadence Design Systems, Inc. (NYSE: CDN) and TransChip, Inc., a leading developer of single-chip camera solutions for mobile phones and other multimedia-enabled devices, today announced that Cadence provided TransChip with ongoing support via its Virtual Computer Aided Design (VCAD) collaborative environment to develop a design flow for TransChip's TC5700 single-chip CMOS camera. Cadence supported TransChip to maintain the company's initial design environments, as well as providing layout consultancy.

Conventional imaging solutions typically require multiple chips. TransChip implemented the camera solution by developing a programmable solution that provides all necessary functionality, including image capture, color processing and compression, on a single chip. TransChip required a design environment that could incorporate the limiting factors of very low power, timing convergence and small die area while taking advantage of the high integration capability of CMOS chips and enabling the integration of analog, digital and external IP circuits onto the same chip.

The Cadence team provided the back-end design during the initial design stages for a prototype test chip using the Cadence(R) Encounter(TM) digital IC design platform's RTL-to-GDSII solution, SoC Encounter(TM), which enabled TransChip to complete the design and silicon tape-out of their latest CMOS imager design in less than four months.

"Cadence's comprehensive toolset for mixed-mode design, ease of collaboration between our design teams and extensive expertise in CMOS integration made Cadence the right partner to help us to produce the world's most compact single-chip imaging and compression solutions," said Viktor Ariel, CEO of TransChip. "All TransChip's tape-outs based on Cadence design flow and software tools have worked on the first pass. We look forward to strengthening our relationship with Cadence in the future."

"The CMOS imager project with TransChip is further validation of the Cadence service model," said Guillaume d'Eyssautier, vice president and general manager for Cadence Europe. "Producing a single-chip multifunction solution for imaging means overcoming many new design challenges. The Cadence service team worked with TransChip throughout the entire process to deliver optimum design success, developing a complete design flow, creating and maintaining the initial design environments and assisting with layouts."

About CMOS Imaging Market

TransChip was founded to develop an integrated camera-chip solution for mobile imaging and multimedia devices using CMOS technology that would meet three fundamental requirements: namely, to provide high quality images, be easily integrated into cell phones, and offer a very small system size.

The first successful camera-equipped mobile phones were introduced in Japan early in 2001. By the end of that year, more than four million camera-enabled mobile phones had been sold. In 2002, there was a fivefold increase in the popularity of camera-enabled handsets, with over twenty million units sold. Recent market reports indicate that by the end of 2003, about 50 percent of handsets in production will have built-in cameras and that over 200 million camera-phones will be sold in 2006.

About Cadence Design System, Inc.

Cadence is the world's largest leader in electronic design technologies, methodology services, and design services. Cadence solutions are 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 approximately 5,300 employees and 2002 revenues of approximately $1.3 billion, Cadence has sales offices, design centers, and research facilities around the world. The company is headquartered in San Jose, Calif., and traded on the New York Stock Exchange under the symbol CDN. More information about the company, its products and services is available at www.cadence.com.

About TransChip, Inc.

TransChip, Inc. is a leading developer of single chip camera solutions for mobile phones. The company's complete imaging solutions, from initial image capture to video compression and streaming, enable mobile handset manufacturers to incorporate high quality multimedia technology into their next generation handsets with very low power requirements. The company was founded by industry leading experts in the fields of imaging and semiconductor technologies. For more information about TransChip, please visit www.transchip.com.

Cadence and the Cadence logo are registered trademarks and Encounter and SoCEncouter are trademarks of Cadence Design Systems, Inc. All other trademarks and registered trademarks are property of their respective holders.