Cypress wins class action lawsuit.

SAN JOSE, Calif.--(BUSINESS WIRE)--June 7, 1995--U.S. District Court Judge Robert P. Aguilar has dismissed by a summary judgment a 3 1/2 year old, $120 million class action lawsuit against Cypress Semiconductor.

The judge's written order concludes as follows: -0-

"The short of the matter is this: Cypress had two disappointing quarters in late 1991 and early 1992. As a result, its stock price dropped. Plaintiffs argue that Cypress should have known what was coming and should have disclosed it. But the evidence shows that the problems underlying Cypress's poor performance were unexpected and that Cypress did not know and had no reason to know that it would not make its forecasts. Plaintiffs' entire case is based on hindsight, forgetting that the securities laws do not adopt this perspective. As Frederic William Maitland put it, `it is very difficult to remember that events now in the past were once far in the future.' All of Cypress's forward-looking statements had a reasonable basis at the time they were made, which is the only time that matters as far as the securities laws are concerned. No reasonable jury could find that any of Cypress's statements were false or misleading. Given this conclusion, the Court need not reach the issues of scienter or the individual defendants' liability. Defendants' motion for summary judgment is GRANTED in its entirety. IT IS SO ORDERED." -0-

Cypress Semiconductor President and Chief Executive Officer T. J. Rodgers stated: "This is a classic securities lawsuit intended to enrich the lawyers who make the business of suing companies. Some of the `shareholders' in this suit were pawns who have been involved in numerous other class action lawsuits. We have consistently refused to negotiate any settlement as a matter of principle, even though typical settlements are only a few percent of the claimed damages. We had a real shareholder -- a $100 million shareholder -- prepared to testify on our behalf."

Rodgers continued: "The plaintiffs have the right to appeal. We will defend ourselves vigorously and continue to refuse to negotiate any `settlement,' which I would label `protection money.'"

Rodgers concluded: "We must change the system to demand accountability from class action lawyers. During the 3 1/2 years of litigation, Cypress was forced to produce 750,000 pages of documentation and spent $3 million in legal fees. The Law Offices of Weiss and Yourman should be paying for their misuse of the legal system."

Cypress Semiconductor Corp. is a leader in the design, development, and manufacture of a broad line of high-performance digital integrated circuits, fabricated using its proprietary 0.5-, 0.65- and 0.8-micron CMOS and BiCMOS technologies. Cypress offers a range of products, including PLDs (programmable logic devices), FPGAs (field-programmable gate arrays), static RAMs (random access memories), CMOS PROMs (programmable read-only memories) and EPROMs, high-performance multichip modules, frequency synthesizer products, FCT logic products, and data communications products. Cypress stock is traded on the New York Stock Exchange. Corporate headquarters are in San Jose.

CONTACT: Cypress Semiconductor Corp., San Jose

Manny Hernandez, 408/943-2754

John Hamburger, 408/943-2902