Catalyst Semiconductor Announces Agreement to Increase Foundry Capacity At Oki Electric.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Sept. 6, 2000

Catalyst Semiconductor, Inc. (NASAQ:CATS) today announced that an agreement with Oki Electric, the Company's principal foundry in Japan, will result in a significant increase in foundry capacity commencing in September, 2000.

Radu Vanco, President and Chief Executive Officer said, "Foundry capacity has been a major limitation for our operation over the last few quarters. The increase in capacity through the agreement with Oki, which is in addition to the gain in capacity through Xfab, should put us in a much better position to respond to our customer's requirements."

Founded in 1985, Catalyst Semiconductor, Inc. is headquartered in Sunnyvale, California. The Company designs and markets a broad range of programmable products including Flash Memories, Serial and Parallel EEPROMs, NVRAM, Digital Potentiometers, Micro-controller Supervisory circuits and other programmable Mixed Signal products. Catalyst products are used in telecommunications, networking systems, computation, industrial and consumer markets, driven by the Internet revolution. Typical applications include modems, network cards, PC BIOS, DIMM modules, cellular telephones, digital satellite box receivers, set-top boxes and Internet routers. Catalyst's Quality Management System is ISO 9001 certified. Additional information may be obtained visiting Company's Web site at www.catsemi.com.

Except for those statements that report the Company's historical results, the statements being made are forward looking statements. Actual results could differ materially from those projected in the forward-looking statements. Factors which could cause actual results to differ from expectations include the following: volatility in supply and demand affecting revenues and market prices, price and availability of silicon foundry, assembly and test subcontract capacity required to meet financial targets and/or meet backlog requirements, risks and delays associated with bringing up new production capabilities or with deliveries from subcontractors, timing and market acceptance of new products, increased expenses associated with new product introductions or process changes, delays in developing or achieving volume production of new products, which can result in delays or failure to contribute to revenues and profits, ability of the Company to maintain its customer and vendor base and delays in and/or inability in raising additional capital. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements is contained under the heading "Certain Factors That May Affect the Company's Future Results of Operations" listed from time to time in Catalyst's SEC reports, including but not limited to the report on Form 10-K/A for the year ended April 30, 2000.