IntellaSys Expands Worldwide Operations; OnSpec and Indigita Become Operating Entities; Synergistic Technology and Products From New Entities Position IntellaSys to Become a Leading Supplier of Distributed Digital Media Chip Solutions.

CUPERTINO, Calif. -- IntellaSys Corporation today announced that OnSpec Electronic Inc., a fabless manufacturer of Flash media storage solutions, and Indigita Corporation, a fabless manufacturer of content secure connectivity solutions, have become IntellaSys operating entities. Both OnSpec and Indigita were recently acquired in independent transactions with the TPL Group, which is the parent company of IntellaSys. Financial terms of the privately held acquisitions were not disclosed.

According to Chet Brown, IntellaSys president and CEO, the newly formed operating entities add synergistic talent, technology and products to IntellaSys, which has been focusing on innovative multicore processor solutions for embedded applications. "With OnSpec and Indigita now operating within our organization, we are well positioned to become a leading supplier of distributed digital media solutions," said Brown. "We have in place the technology and talent to innovate distributed digital media chips ranging from simple memory interface/controller devices to complex multicore solutions that incorporate encryption and digital rights management."

Brown reported that IntellaSys would be formally unveiling its proprietary Scalable Embedded Array(TM) (SEA) Platform on May 15, 2006 in conjunction with In-Stat's Spring Processor Forum. The first chip to be derived from the platform, namely the SEAforth-24 multicore solution, will also be introduced at the same time. "We see exciting opportunities to integrate intellectual property from both OnSpec and Indigita into our SEA Platform," added Brown. He briefly described the current products offered by the new operating entities as follows:

OnSpec: Flash media solutions based on 37 patents and more
        than 10 years of software compatibility and system platform
        development. Comprehensive line of media interface/controller
        chip solutions target broad range of consumer electronics and
        PC/peripheral applications.

        Indigita: Connectivity and storage management solutions,
        including adapter boards ("bridges") that connect PCs to
        external storage media using 1394/FireWire and USB 2.0
        Protocol -- plus system-on chip solutions that enable
        recording/streaming of digitally protected audio/video content
        from digital cable, satellite, and DTV set-top-boxes.

Brown confirmed that Swamy Venkidu, president of OnSpec, and Mel Gable, president of Indigita, have both joined IntellaSys, and that each executive has been named president/COO of their respective groups reporting to him. As a result of establishing the new operating entities, the IntellaSys workforce expands from 34 to more than 100 employees worldwide, including a tightly coupled OnSpec software development group of 40 technologists in India.

About IntellaSys Corporation

IntellaSys Corporation is a TPL Group Enterprise focused on developing distributed digital media semiconductor solutions including multicore processors, Flash media storage products and content secure connectivity devices. With headquarters in Cupertino, California, IntellaSys operates eight design centers, four of which are in California as well as four others based in Tempe, Arizona; Castle Rock, Colorado; Cincinnati, Ohio; and Vienna, Austria. The TPL Group, founded in 1988, specializes in the development, commercialization and management of IP assets. For more information, visit www.intellasys.net.

IntellaSys, Inventive to the Core and Scalable Embedded Array (SEA) are trademarks of Technology Properties Limited (TPL).

All other trademarks belong to their respective owners.