Esmertec and MIPS Technologies Announce Optimal Java Solution on MIPS32(R) 24Kc(TM) Processor for Blu-ray Disc(TM) Products.

Market leader Pioneer Selected High-Performance Solution for its

Blu-ray Disc Players

DUEBENDORF-ZURICH, Switzerland & MOUNTAIN VIEW, Calif. -- Esmertec[TM] (SWX:ESMN), and MIPS Technologies (NASDAQ:MIPS) today announced the availability of an optimal high-performance Java[TM] solution for Blu-ray Disc[TM] (BD) players. Pioneer Corporation, a leading manufacturer of consumer and business electronics, has selected the joint solution for its Blu-ray Disc devices and plans to launch Blu-ray Disc players in the United States.

"Blu-ray Disc technology will enable the next leap in ultimate home entertainment experience for end consumers," said Andy Parsons, senior vice president, Pioneer Electronics (USA) Inc. "We are pleased that our new players will incorporate Esmertec's Jbed[TM] on MIPS processors, which delivers superior performance running applications in a small footprint, thus enhancing the overall end user experience."

Blu-ray Disc is a successor to DVD that provides outstanding high-definition (HD) video and audio quality. The BD allows 25 to 50 GB of media storage capacity, and incorporates a robust copy protection mechanism as well as advanced interactivity and network capabilities. Java technology has been selected by the Blu-ray Disc Association (BDA) as its interactivity standard and a Java Virtual Machine (JVM) is now mandatory in all BD products.

Esmertec's Jbed software in Blu-ray Disc devices will provide consumers with more options and flexibility in the download of games, audio, video, programs, program related information, as well as in "surfing" the Internet, checking emails or ordering on-demand content and merchandise. The MIPS processor will provide the power that accelerates the performance. Jbed running on a MIPS32[R] 24Kc([TM]) core delivers the highest known Embedded CaffeineMarks per Megahertz (Java performance) in the System-on-Chip (SoC) industry. With such performance using only software acceleration, device manufacturers can reduce silicon costs, lower production costs, and upgrade software easily.

"We're proud that 70 percent of all DVD recorders sold today are MIPS-Based, and anticipate extending a similar success into the Blu-ray Disc arena," said Jack Browne, vice president of marketing at MIPS Technologies. "With Esmertec's Jbed running on MIPS cores, our customers can achieve the highest possible Java performance available today."

Georges Boulloy, Chief Product Officer of Esmertec said, "Esmertec and MIPS Technologies have always been at the forefront in delivering best-in-class technology in consumer electronics and home multimedia devices. We are pleased that a global player like Pioneer recognizes the strengths and opportunities that Esmertec's award-winning Jbed with MIPS cores can bring to the consumer electronics market."

About Pioneer

Pioneer Electronics (USA) Inc. is headquartered in Long Beach, Calif., and its U.S. Web address is www.pioneerelectronics.com. Its parent company, Pioneer Corporation, is a leader in optical disc technology and a pre-eminent manufacturer of high-performance audio, video and computer equipment for the home, car and business markets. The company focuses on four core business domains including Blu-ray Disc and DVD, display technologies, navigation and Digital Network Entertainment.

Pioneer's Home Entertainment Division is a leading manufacturer of plasma televisions and monitors, Blu-ray Disc and DVD products, A/V receivers, speakers and other audio and video accessories. Its focus is on the development of new digital technologies including Digital Network Entertainment[TM]. The company markets its products under the Pioneer and Pioneer Elite[R] brand names. When purchased from an authorized dealer, consumers receive a limited warranty for one year with Pioneer products and two years with Pioneer Elite products.

About Esmertec

Esmertec is a focused provider of software and services to communications device manufacturers and mobile telecom operators. The company provides software platforms that enable the deployment of content and applications in devices and over servers. Customers include mobile telecom operators and manufacturers of mobile handsets, set-top boxes and interactive televisions. Esmertec's software and service capabilities excel with its reliability as well as fast and local execution. Founded in 1999, Esmertec is headquartered in Zurich, Switzerland with subsidiaries in China, France, Japan, South Korea, and the USA, and offices in Taiwan and the UK. Since 2005, Esmertec is listed on the SWX Swiss Exchange (ESMN). www.esmertec.com

About MIPS Technologies

MIPS Technologies, Inc. is a leading provider of industry-standard processor architectures and cores for digital consumer and business applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers and system OEMs. MIPS Technologies and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. The company is based in Mountain View, California, and can be reached at [phone] or www.mips.com.

Esmertec and Jbed are trademarks of Esmertec AG. MIPS, MIPS32, MIPS-Based and 24Kc are trademarks or registered trademarks of MIPS Technologies, Inc. in the United States and other countries. Java is a trademark of Sun Microsystems, Inc. Other company, product and service names are trademarks of their respective owners.