Cadence and Ingersoll-Rand Form Alliance for Industrial Applications of Advanced Electronics.

NEW YORK--(BUSINESS WIRE)--March 15, 1999--

Industry Leaders Pioneer Strategy for

"Electronicization" of Industrial Market

Cadence Design Systems, Inc. (NYSE:CDN) and Ingersoll-Rand Company (NYSE:IR) during a press conference today at the New York Stock Exchange announced that the two companies have established a strategic business alliance to proliferate electronics within the industrial marketplace. In concert with this effort, the two companies signed a definitive agreement under which Ingersoll-Rand could spend up to $100 million over the next five years for Cadence's cutting-edge electronic design realization and consulting services.

The Cadence and Ingersoll-Rand alliance is the first major initiative to target the "electronicization" of the industrial product sector. The alliance uniquely leverages the complementary competencies and technology assets of Cadence, the largest consulting and implementation services group in the world focused on electronic design, and Ingersoll-Rand, the $8.3 billion industrial leader known for its diversified product engineering and manufacturing expertise.

Jack Harding, president and CEO of Cadence, stated: "With the electronics business exceeding $1.2 trillion by the year 2001, now is the time for electronics to revolutionize the industrial marketplace. The only question is which companies will lead, and which will be left behind. We're very excited to be working with Ingersoll-Rand, a company - like Cadence - that is embracing this opportunity. The alliance between our two companies represents a vision for advancing electronics that delivers value to customers and exploits future growth for our businesses."

Steve Martin, executive vice president of Ingersoll-Rand, said: "Electronics technology will extend Ingersoll-Rand's products into new markets and enable organic growth in revenues and profits. This alliance with Cadence reinforces the fact that Ingersoll-Rand is fundamentally a different company. Leveraging Cadence's expertise, we will accelerate our current efforts to integrate advanced electronics into our products, while eliminating the high costs and time required to build a similar level of electronics expertise internally."

Exploiting New Opportunities

The Ingersoll-Rand/Cadence alliance will seek to differentiate Ingersoll-Rand's products through the integration of electronics in at least three major areas: communications, intelligence and software, and miniaturization. Ingersoll-Rand will enhance or automate mechanical operations with more powerful, compact electro-mechanical solutions, drawing on Cadence's full range of services in electronics consultation, design methodology and design implementation. This strategy is expected to result in:

(1) faster time-to-market of new products that incorporate

electronics as software-enabled derivative products and

enhancements become easier and quicker to develop;

(2) faster product development cycles gained through better

control over the electronics development process from

concept through manufacture; and

(3) reduced size and enhanced ease-of-use through highly

integrated electronics, enabling lighter and more durable

components and streamlined installation and serviceability 

features.

Practical applications being considered include: network-based cabling systems such as those used in the automotive and process control industries today; fiber-optics for sensor integration and data exchange between systems and sub-components; wireless and global positioning systems with new value-added services for asset tracking, location control and remote diagnostics; and software-based instrumentation enabling smart, predictive diagnostics and optimization of system performance.

Joint Program Office

Cadence and Ingersoll-Rand have agreed to jointly staff a program office formalizing the structure, resources and processes of the alliance. Specifically, the office will identify projects offering immediate benefits in cost reduction, enhanced product features, and new applications for electronics technology.

The program office's organization is expected to include executive sponsors, a joint management board, and an electronics technology council. It will centralize the alliance's key functions of opportunity assessment, strategic product development and planning, portfolio management of the project pipeline, and technology roadmap definition.

About Cadence and Ingersoll-Rand

Cadence is the largest supplier of software products, consulting 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 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 may be obtained from the World Wide Web at http://www.cadence.com.

Ingersoll-Rand Company is a major diversified industrial equipment and components manufacturer. Its product lines serve a wide range of industrial and commercial markets worldwide. The company had 1998 sales of $8.3 billion and employs approximately 47,000 people. Further information can be found on the company's Internet web site at http://www.ingersoll-rand.com

This release contains forward-looking statements based on current expectations or beliefs as well as a number of assumptions about future events, and that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The reader is cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties and other factors, many of which are outside the control of Cadence and Ingersoll-Rand. For a detailed discussion of these and other cautionary statements, please refer to Cadence's and Ingersoll-Rand's filings with the Securities and Exchange Commission, including their respective Annual Reports on Form 10-K for the year ended December 31, 1997 and their respective Quarterly Reports on Form 10-Q for the quarter ended September 30, 1998. Cadence and the Cadence logo are registered trademarks of Cadence Design Systems, Inc. All others are properties of their holders.