Matrix Semiconductor Named One of Red Herring's Top Ten Companies to Watch in 2002.

Business Editors/High-Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--May 13, 2002

Renowned Technology Business Publication Acknowledges Semiconductor Industry Innovator for Its Pioneering Technology and Business Strategy

Recognizing Matrix Semiconductor's technology innovations, business model, and quality of management, Red Herring magazine -- a leading technology business publication -- has selected the Company as one of the "Top Ten Companies To Watch" in 2002.

Within its highly regarded "Red Herring 100" annual list of top public and private companies that define business innovation, Red Herring carefully selects ten startups that it believes will be noteworthy in the coming year, either in terms of disrupting current markets or creating new ones.

The award winners were disclosed today on the Red Herring web site (http://www.redherring.com/) and Matrix Semiconductor will be featured in the issue cover-dated June 2002.

Matrix Semiconductor is the first company to commercialize integrated circuits built in three dimensions. By building up, Matrix can reduce manufacturing costs by up to 80% over traditional chip fabrication methods. The Company's first product -- Matrix(TM) 3-D Memory -- will be introduced under well-known retail brands as the first semiconductor-based memory cards inexpensive enough to be considered mass-market "consumables."

"Matrix Semiconductor is proud to be recognized by Red Herring as a company that is introducing a fundamental breakthrough technology, and in so doing, creating new markets for portable electronics," said Dennis Segers, president and CEO of Matrix Semiconductor. "Our combination of a clear vision, extraordinary people, premier partners, and strong execution will enable us to bring this significant innovation to market."

About Matrix Semiconductor

Founded in 1998, Matrix Semiconductor, Inc. (Santa Clara, Calif.) is the first company to develop and commercialize three-dimensional integrated circuits using standard manufacturing techniques and materials. By optimizing use of a semiconductor wafer's area -- building "up" rather than "out" -- Matrix's 3-D technology produces ultra-dense chips for high-volume markets at dramatically lower costs than existing technologies. Matrix's first product -- Matrix(TM) 3-D Memory (3DM) -- is an affordable, convenient, and secure digital storage solution. Comparable in cost and usage model to 35mm film, audiotape, and other traditional consumable media, Matrix 3-D Memory enables world-leading brands to introduce the first archival semiconductor consumable to the mass market. The company has received over $80 million in funding from Benchmark Capital, Skymoon Ventures, and Microsoft, among others. More information is available at http://www.matrixsemi.com/.