Cadence to Invest $50 Million in China for Major Expansion; Opens Wholly Owned Subsidiary to Enhance Services in Burgeoning Chinese Market.

Business Editors/Technology Writers

BEIJING--(BUSINESS WIRE)--Dec. 17, 2001

Cadence Design Systems, Inc. (NYSE:CDN), the world's leading supplier of electronic design products and services, today announced it is investing US$50 million in China to enhance sales, support and services in China's booming electronic design market.

The expansion, set to begin in January 2002, includes moving to a direct sales business model in China and investing heavily in infrastructure. Cadence will open new offices, double the number of employees, and expand training and development in China.

"China is a very important market to Cadence and we are making a major investment in its future," said Cadence President and Chief Executive Officer Ray Bingham, who was in China to make the announcement. "Our investment and expansion plans underscore our commitment to providing world-class services to the electronic design community in China. I'm confident these steps will help us build closer relationships with existing Cadence customers here while attracting new business."

China's electronic design automation industry grew by 67 percent in 2000, according to research firm Gartner Dataquest. The firm predicts China will become the largest electronic design market in Asia Pacific by 2004, with a total market value of about US$100 million that year.

Cadence will establish four offices in China--in Beijing, Shanghai, Chengdu and Shenzhen--and a new wholly owned subsidiary named Beijing Cadence Electronic Technology Company Ltd. The number of technical support, sales, and marketing employees in China will double to about 80, and Cadence will increase employee training and development here. The San Jose, Calif.-based company also plans to establish research and development centers in China.

"Our direct sales model will enable us to better understand the needs of our local customers and quickly provide them with tailor-made solutions," said Matthew Chan, President, Asia Pacific and Corporate Vice President of Cadence. "We can assure our Chinese customers that Cadence will continue to provide superior technologies, a full range of electronic design solutions and high-quality customer services."

Cadence China Technologies Pte Ltd., a Cadence joint venture, has been handling sales and support of Cadence products in China. Many of its key executives and technical, sales and marketing staff will join the new Cadence company. The transition to the new company will take place Jan. 1, 2002, and Cadence will continue to provide support and maintenance to existing customers.

In addition to the expansion plans, Cadence is developing partnerships with several high-tech companies in China and, through its education programs, continues to provide universities in China design tools at special discounted prices.

About Cadence

Cadence is the largest supplier of electronic design automation products, 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 5,700 employees and year 2000 revenues of nearly $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.

Note to Editors: Cadence and the Cadence logo are registered trademarks of Cadence Design Systems, Inc. All other trademarks are the property of their respective owners.