Cypress Launches Design Center in Hyderabad, India.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--June 19, 2003

Cypress Semiconductor Corporation (NYSE:CY) today announced that it is launching a state-of-the-art chip design center in Hyderabad, India. The new site will complement Cypress's current Indian design center in Bangalore.

Cypress currently operates 18 design centers in the U.S. and in countries such as England, Ireland, Turkey and India. The new facility is expected to be operational by year-end.

"The Hyderabad center will enable Cypress to tap into the city's enormous engineering talent pool," said Paul Keswick, senior vice president of Cypress's New Product Development (NPD) group. "Cypress's philosophy on the development of new design resources has long been to identify pockets of engineering expertise outside Silicon Valley and to locate facilities nearby to draw upon that expertise. We have successfully used that approach at international locations, such as India and Ireland, and at locations in proximity to major U.S. universities."

"In a recent feature article on emerging global cities, National Geographic magazine described Hyderabad as the next Silicon Valley," Keswick said. "The Hyderabad site offers us the benefits of proximity to our Bangalore facility and to other, major, India-based hardware design and manufacturing companies, along with a fully developed utilities, transportation and communications infrastructure."

"We are pleased that Cypress Semiconductor, a billion-dollar, multinational design and manufacturing company, has chosen to establish a state-of-the-art chip design center here," said Randeep Sudan, special secretary to the chief minister and CEO of the Agency for Promoting and Facilitating Investment in Remote Services and Technology (APFIRST). "We look forward to an evolving, symbiotic relationship with Cypress and to the challenge of supporting the company in all its endeavors in Hyderabad."

In addition to its design facilities, Cypress has two chip fabrication facilities in the U.S. in Minnesota and Texas, and a state-of-the-art assembly-&-test plant near Cavite City in the Philippines. Cypress's design facility in Bangalore currently has 116 employees working on designs for static random access memory (SRAM) chips, framers, clocks and control-communications devices.

About Cypress

Cypress Semiconductor Corporation (NYSE:CY) is Connecting from Last Mile to First Mile(TM) with high-performance solutions for personal, network access, enterprise, metro switch, and core communications-system applications. Cypress Connects(TM) using wireless, wireline, digital, and optical transmission standards, including USB, Fibre Channel, SONET/SDH, Gigabit Ethernet, and DWDM. Leveraging its process and system-level expertise, Cypress makes industry-leading physical layer devices, framers, and network search engines, along with a broad portfolio of high-bandwidth memories, timing technology solutions, and programmable microcontrollers. More information about Cypress is accessible online at www.cypress.com.

Cypress and the Cypress logo are registered trademarks of Cypress Semiconductor Corporation. "Connecting from Last Mile to First Mile" and "Cypress Connects" are trademarks of Cypress. All other trademarks are the property of their respective owners.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements herein that are not historical facts are "forward-looking statements" involving risks and uncertainties, including but not limited to: the effect of global economic conditions, shifts in supply and demand, market acceptance, the impact of competitive products and pricing, product development, commercialization and technological difficulties, and capacity and supply constraints. Please refer to Cypress's Securities and Exchange Commission filings for a discussion of such risks.