Quantum Effect Design Secures Rights to Manufacture MIPS-Based Microprocessors; MIPS Architecture License serves as key component in QED's debut as full-service vendor.

SAN JOSE, Calif.--(BUSINESS WIRE)--Sept. 16, 1996--In a key strategic move aimed at expanding its business, Quantum Effect Design, Inc. (QED) today announced it has acquired a MIPS manufacturing and sales license from MIPS Technologies, Inc., a wholly-owned subsidiary of Silicon Graphics, Inc. Already recognized as a supplier of cutting-edge MIPS architecture microprocessor designs, QED's acquisition of the MIPS license adds the ability to manufacture, market and sell components, and is a vital piece of the company's strategy to further expand the high-end embedded microprocessor market.

The recently acquired MIPS manufacturing and sales license allows QED to offer a full line of MIPS architecture microprocessors to the worldwide market. This announcement is central to QED's debut today as a full-service microprocessor vendor (see separate release).

The MIPS license enables QED to manufacture its products at any semiconductor foundry. This flexibility gives QED a wide range of manufacturing options and enables the company to select the supplier best equipped to produce the company's leading-edge products.

Leveraging its expertise in working with multiple manufacturers to quickly move products into high volumes, QED is now in the selection process with a number of manufacturers. A definitive agreement is expected by Q4 `96.

In securing this license, QED joins the ranks of semiconductor industry leaders such as Integrated Device Technologies, Inc., Toshiba Corp., LSI Logic, NEC Corp., NKK, Philips, and Sony that have also attained MIPS architecture manufacturer status.

Quantum Effect Design, Inc.

Quantum Effect Design, Inc., founded in 1991, designs, develops and markets high-performance, cost-effective, market-driven embedded microprocessor solutions. The company designed and developed many of the 64-bit MIPS microprocessors including the popular R4600, R4700, R4650, R4640 and R5000 products.

Quantum Effect Design's future product families will include high-end, 32 and 64-bit embedded microprocessors targeted at emerging and fast-growing markets such as internetworking, printers, games, Internet TV/set top boxes/cable modems and high-speed communications devices. The company has an unsurpassed record of designing and delivering innovative high-performance microprocessors in breakthrough time-to-volume.

Company headquarters are located in Santa Clara, California, telephone [phone]. World Wide Web site: http://www.qedinc.com. -0-

Note to Editors: MIPS is a registered trademark of MIPS Technologies, Inc., R4600, R4700, R4650 and R4640 are trademarks of IDT, and R5000 is a trademark of MTI.

CONTACT: Quantum Effect Design

Rick Kepple, 408/565-0315

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or

Simon/McGarry Public Relations

Sandra McBride/Melanie Laurence, 408/746-0911

[e-mail]

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