Celoxica Completes $6.3 Million Funding Round; Investors Consolidate Their Support for the Provider of C-based Synthesis and System Design Tools.

Business Editors/High-Tech Writers

ABINGDON, England & CAMPBELL, Calif.--(BUSINESS WIRE)--June 7, 2004

Celoxica Holdings Ltd., the technology leader in C-based synthesis and system-level design, today announced $6.3M of new investment from existing investors led by Advent Venture Partners, Cazenove Private Equity, Intel Capital and Quester Venture Capital. Celoxica will direct this funding to accelerate its revenue growth and new product development.

Celoxica provides software tools, system IP, development boards and consulting services that enable the design automation and implementation of complex C-based algorithms into hardware devices. Through its DK Design Suite of system design tools and custom hardware compiler development, Celoxica is enabling the emerging world of reconfigurable electronics and applications. Celoxica products are used by a worldwide audience of electronic systems designers to design and analyze products for application markets with strong algorithm content; including DSP, imaging, video processing, telecommunications, biometrics, and data security.

"As system designers increasingly adopt FPGA technology and reconfigurable architectures to implement their complex algorithms, they need a design environment that's flexible, fast and efficient," said Phil Bishop, CEO of Celoxica. "Celoxica develops the tools that meet this need and our goal is to be the system design environment of choice for this rapidly developing market. The strength of our management team, the quality of our solutions and the additional funding leave us well positioned to continue our revenue growth."

First released to production in March 2001, the Celoxica DK Design Suite of system design tools is now in its third major release (DK3), and has sold over 300 commercial licenses to system designers in Asia, Europe and the Americas. By adopting the tools that enable a software-compiled system design methodology, designers are now able to partition system functionality between hardware and software, verify system functionality at a high-level of abstraction and directly implement the system in optimized hardware from C language descriptions. Celoxica also designs custom hardware compilers and C-based design flows that support a wide array of industry leading reconfigurable architectures through agreements with major semiconductor suppliers. These custom solutions enable easy programmability and promote rapid user adoption of these new semiconductor architectures.

"Over the last two years the Celoxica management team has driven the business forward in a difficult market environment by executing an aggressive growth strategy based on partnerships and technical innovation," said Dave Cheeseman, a partner at Advent Venture Partners. "We have confidence that this new investment will enable Celoxica to expand its growth strategies of reconfigurable architecture support, imaging and signal processing applications and new product creation while consolidating its position as the recognized provider of solutions for C-based synthesis and system design."

"There is a growing need for reconfigurable devices that contain both hard cores and programmable gates. This in turn is driving the need to have design methodologies and tools that support a system centric design flow that integrates the hardware design and the software development within a single environment," commented Dave Todd, investment manager at Intel Capital.

Celoxica headquarters are located in Abingdon, UK; with major offices in Campbell, California; and Yokohama, Japan.

About Celoxica

An innovator in system-level electronic design automation (EDA), Celoxica supplies the design technology, IP and services that define Software-Compiled System Design, a methodology that exploits higher levels of design abstraction to dramatically improve silicon design productivity. Celoxica's products address hardware/software partitioning, co-verification and C-based synthesis to reconfigurable hardware. Established in 1996, Celoxica offers a proven route from complex software algorithms to hardware, and provides an ideal design environment for reconfigurable electronics with significant productivity advantages for digital signal processing applications such as imaging, electronic security and communications. For more information, visit: www.celoxica.com.

Celoxica and the Celoxica logo are trademarks of Celoxica, Ltd. All other brand names and product names are the property of their respective owners.