Cadence to Partner With MUSIC Semiconductors to Design Network Switching/Routing Chips; Signs Multi Year, Multimillion-Dollar Deal.

Business Editors and High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--April 11, 2000

Cadence Design Systems, Inc. (NYSE:CDN), the world's leading supplier of electronic design products and services, announced today the signing of a multi-year, multimillion-dollar partnership with MUSIC Semiconductors, a supplier of silicon networking solutions to major OEMs. The contract calls for Cadence(R) to design advanced, integrated chip-level products including advanced semiconductor devices that will accelerate crucial functions within network switching and routing systems.

"At MUSIC Semiconductors, we are pioneering a dynamic, new business model," said Dave Walls, president. "In this model, MUSIC will focus exclusively on new product creation, sales, and marketing, and will outsource design and production services to partners such as Cadence. We believe this model, given the resources and experience of Cadence, will enable products to come to market far more quickly than under the more traditional model of establishing a full set of engineering capabilities in-house. We believe, accordingly, that our business model, supported by Cadence, will build a high level of confidence on the part of our customers and investors."

"We chose to partner with Cadence because we value its expertise in design, prototyping, and pre-production - and because they provide us with access to state-of-the-art equipment, techniques, and intellectual property while minimizing delay and hiring risk. With an abundance of talent in all design specialties, and a willingness to quickly augment or redirect resources as requirements change, Cadence is the ideal virtual engineering department for MUSIC."

"We have had a very successful relationship with MUSIC Semiconductors for some time and look forward to working with them under this new agreement," said Bob Wiederhold, senior vice president of Cadence's design services organization. "MUSIC is part of a growing list of companies moving to a virtual product development (VPDO) approach to product design. By choosing Cadence to design its products, MUSIC is able to maximize its effectiveness because it can focus on its core competencies and areas of differentiation."

About Cadence

Cadence is the largest supplier of software 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 approximately 5,000 employees and 1999 annual revenue of $1.1 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.

About MUSIC Semiconductors

MUSIC Semiconductors designs, develops and markets specialty integrated circuits networking and telecommunication applications. MUSIC technology is implemented into products offered by networking industry leaders such Cisco Systems, Foundry Networks and Nortel Networks. MUSIC Semiconductors is a subsidiary of MUSICCorporation, an investment holding company focused on networking, telecommunications and the Internet markets. MUSIC Corporation is listed on the Philippine Stock Exchange, and publicly traded in Manila under the ticker symbol MUSX.

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.