Cypress and Hyundai MicroElectronics Sign Manufacturing Agreement; Pact To Provide Additional Capacity For Top-Selling Cypress USB Product Family.

Business Editors/High-Tech Writers

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 23, 2000

Cypress Semiconductor (NYSE:CY) today announced that it has reached an agreement with Hyundai MicroElectronics, under which Hyundai(R) will augment Cypress's manufacturing of USB products.

Hyundai MicroElectronics, a global semiconductor manufacturer, previously produced devices for Anchor Chips Incorporated -- a designer of USB products and bus solutions -- which Cypress acquired in May. The agreement is effective immediately, with Hyundai MicroElectronics delivering to Cypress finished goods produced in 0.5- and 0.35-micron technologies.

Cypress is the market-share leader in USB -- a plug-and-play interface standard used to connect PCs with their peripherals -- recently passing the 35-million-unit mark in shipments.

"This agreement will help Cypress to continue to meet the rapidly increasing demand for our products, cementing our leadership position in the Universal Serial Bus (USB) market by providing a second manufacturing source to our proprietary facilities," said Cathal Phelan, Cypress vice president of Interface Products. "Hyundai MicroElectronics has proven to be a reliable source for high-quality products at competitive prices and is a welcome addition to our manufacturing capabilities."

Daniel D. Lee, Hyundai Electronics America, System IC Division Head said, "We are pleased to have an opportunity to bring Hyundai's foundry technology and manufacturing power to Cypress's USB product family." Lee continues, "This agreement further demonstrates the confidence our customers have regarding the versatility and strength of our foundry services and technology."

Extending its proprietary portfolio with technology and products gained through the recent additions of Anchor Chips and Intel's high-performance USB line, Cypress now offers a microcontroller for virtually every USB peripheral and engages with equipment manufacturers in discrete USB application and market segments, ranging from mice, keyboards, and joysticks, to higher-speed hubs, scanners, and digital cameras.

About Hyundai MicroElectronics

Hyundai MicroElectronics is the semiconductor group of Hyundai Electronics Industries Co., Ltd. (HEI) of Ichon, Korea. Hyundai MicroElectronics is an industry leader in the development, sales, marketing, and distribution of high-quality microelectronics (including DRAM, SRAM, Flash memory, and System IC devices). According to International Data Corporation (IDC) of Framingham, MA, the Hyundai MicroElectronics Group is the world's largest DRAM supplier. In addition, Hyundai is expanding its System IC business unit with leading technology and added deep-submicron foundry services to strategically broaden its overall semiconductor presence and achieve its goal of leading the global semiconductor market. Hyundai MicroElectronics' System IC Business Unit is composed of 5 different product lines: 1) ASICs and Foundry Services (including merged memory logic, 2) Imaging Solutions, 3) Micro Controller Units, 4) Digital Media Products, and 5) Mixed Signal Products. Based in Korea, Hyundai MicroElectronics maintains development, manufacturing, sales, and marketing facilities strategically worldwide. Hyundai Electronics America (HEA) is a U.S. subsidiary of Hyundai Electronics Industries Co., Ltd. HEA is headquartered at 3101 North First Street, San Jose, CA 95134. More information on Hyundai Electronics America and its products is available from the company's web site at http://www.hea.com.

About Cypress

Cypress Semiconductor provides high-performance integrated circuit solutions "By Engineers. For Engineers.(TM)" for fast-growing companies in fast-growing markets, including data communications, telecommunications, computation, consumer products, and industrial-control. With a focus on emerging communications applications, Cypress's product lines include networking-optimized and micropower static RAMs; high-bandwidth multi-port and FIFO memories; high-density programmable logic devices; timing technology for PCs and other digital systems; and controllers for Universal Serial Bus (USB). Cypress is No. 1 in the USB and clock chip markets.

More than two-thirds of Cypress's sales come from fast-growing datacom/telecom markets and dynamic companies such as 3Com, Alcatel, Cisco, Ericsson, Lucent, Motorola, and Nortel Networks. Cypress's ability to mix and match its broad portfolio of intellectual property enables targeted, integrated solutions for high-speed systems that feed bandwidth-hungry Internet applications. Cypress aims to become the preferred silicon supplier for Internet switching systems and for every Internet data stream to pass through at least one Cypress IC.

Cypress employs more than 3,600 people worldwide with international headquarters in San Jose, California. Its shares are listed on the New York Stock Exchange under the symbol CY. More information about Cypress is accessible electronically on the company's worldwide web site at http://www.cypress.com or by CD-ROM (call 1-800-858-1810). An electronic investor forum, and other investor information, is located at http://www.cypress.com/investor/index.html.

"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. Please refer to Cypress's Securities and Exchange Commission filings for a discussion of such risks.

Note to Editors: EZ-USB is a trademark of Cypress Semiconductor. Hyundai Electronics is a trademark, and Hyundai is a registered trademark of Hyundai Electronics America. All other trademarks are the property of their respective owners.