Tensilica Licenses Xtensa to National Semiconductor for Wireless Internet Chipset.

Business Editors/High Tech Writers

SANTA CLARA, Calif.--(BUSINESS WIRE)--Dec. 11, 2000

Tensilica(R) Inc., the leading supplier of configurable microprocessor core intellectual property (IP), announced today that National Semiconductor(R) (NYSE:NSM) has licensed the company's Xtensa(TM) III. National will employ the technology to develop configurable microprocessor cores for the high-speed Ricochet(TM) modem technology it is developing in concert with Metricom, Inc. (NASDAQ:MCOM).

According to National Semiconductor, the objective of their recently announced strategic relationship with Metricom(TM) is to drive the Ricochet modem technology into a chipset, delivering a complete, easy-to-use mobile access technology for the rapidly growing wireless data product sector. National and Metricom will jointly market the chipset, which is expected to become available by midyear 2001.

Tensilica's Xtensa IP provides embedded systems designers with a configurable processor technology for system-on-chip (SOC) applications. Now, with Xtensa III, designers are able to achieve integration of DSP and CPU functions within a single core microprocessor. Using specific instruction extensions provided by the Tensilica Instruction Extension (TIE) language, accelerated decoding -- a critical requirement of next generation wireless technology -- is easily achieved.

"Tensilica's Xtensa technology provides a powerful, cost effective processor solution." said Joe Montalbo, Vice President, Custom Solutions Division of National Semiconductor. "It uniquely satisfies the DSP as well as general purpose processor needs in our applications. We're looking forward to utilizing its substantial power and flexibility in the Ricochet chipset and bringing our product to market in an accelerated timeframe."

Chris Rowen, Tensilica's President and CEO, said "We are particularly delighted to welcome National Semiconductor to our growing family of licensees. Long a pioneer in analog and digital components, National is quickly becoming the model for semiconductor suppliers where the focus is on rapid creation of information appliance solutions like this new wireless communications technology.

About National Semiconductor

National Semiconductor provides system-on-a-chip solutions for the information age. Combining real-world analog and state-of-the-art digital technology, the company's chips lead many sectors of the personal computer, communications, and consumer markets. With headquarters in Santa Clara, California, National reported sales of $2 billion for its last fiscal year, and has about 10,500 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com. For more information, contact Gayle Bullock at 408-721-2033.

About Metricom

Metricom, Inc., is a leading high-speed wireless data company. With its high-speed Ricochet mobile access, Metricom is making "information anytime" possible-at home, at the office, on the road, and on many devices. Founded in 1985, Metricom has spent more than 15 years on the development of its distinctive MicroCellular Data Network (MCDN) technology. That experience has enabled Metricom to develop the fastest wireless mobile data networking and technology available today. Ricochet has been operating since 1995 at speeds up to 28.8 kbps. The new Ricochet, delivering end-user speeds of 128 kbps, is currently available in ten markets and is connected to the 28.8 kbps service areas to increase coverage for mobile professionals. Coverage will continue expanding, and is targeted to reach 46 markets by the end of 2001.

About Tensilica

Tensilica was founded in July 1997 to address the fast-growing market for application-specific microprocessor cores and software development tools for high volume, embedded systems. Using the company's proprietary Xtensa Processor Generator, system-on-a-chip (SOC) designers can develop a processor subsystem hardware design and a complete software development tool environment tailored to their specific requirements in hours.

Tensilica's solutions provide a proven, easy-to-use, methodology that enables designers to achieve optimum application performance in minimum design time. The Company has over 100 engineers engaged in research, development, and customer support from its offices in Santa Clara, California, Burlington, Massachusetts, Princeton, NJ, Houston, Texas, Oxford, U.K. and Yokohama, Japan. Tensilica is headquartered in Santa Clara, California (95054) at 3255-6 Scott Boulevard, and can be reached at [phone] or via www.tensilica.com.

Editors' Notes:

-- "Tensilica" is a registered trademark and "Xtensa" is a trademark belonging
to Tensilica Inc. "National Semiconductor" is a registered trademark of
National Semiconductor Corporation. "Metricom" and "Ricochet" are trademarks of
Metricom, Inc.

-- Tensilica's announced licensees are, in alphabetical order, Berkeley
Wireless Research Center, Cisco Systems, Fujitsu Limited, Galileo Technology,
National Semiconductor, NEC Corporation, NTT, ONEX Communications, Osaka and
Kyoto Universities, TranSwitch Corporation, and ZiLOG.

-- Selected Analyst's comments

"This deal establishes the validity and importance of reconfigurable processor cores for advanced electronic designs, particularly those destined for high volume, consumer and communication products."

Steve Leibson, Vice President and Editorial Director of MicroDesign Resources, publisher of the MICROPROCESSOR REPORT; [e-mail]; Tel: [phone]

"Clearly, this proves the utility of the Tensilica architecture for volume DSP applications," said Will Strauss, president of DSP market watcher Forward Concepts. "This provides National with a platform that can address a number of other DSP-enabled markets, as well," he added.

Will Strauss, President, Forward Concepts, [e-mail], Tel: [phone]

"Configurable processors offer intriguing possibilities for designers who are prepared to exchange design effort for a highly-tuned architecture. This design win with National Semiconductor shows that when price/performance matters, a configurable processor architecture is worth serious consideration."

Luke Collins, principal semiconductor analyst, Gartner Dataquest ([e-mail])

-- Statements made in this press release that are not historical

facts, including those related to the Ricochet modem

technology chipset. Future market conditions, future

competitors, future partners, market rollouts and future

technology, are forward looking and are made pursuant to the

safe harbor provisions of the Securities Litigation Reform Act

of 1995. Such statements involve risks and uncertainties which

may cause results to differ materially from those set forth in

these statements. Among other things, additional competition

from existing and future competitors may impact the market.

Projections of market size, partners, market acceptance,

technological rollout and competition are estimated based on

preliminary information as well as certain assumptions which

management believes to be reasonable at this time. All forward

looking statements are subject to the successful completion of

the actions described in this press release. In addition to

the factors set forth elsewhere in this press release, the

economic, competitive, governmental, technological and other

factors identified in Metricom's filings with the Securities

and Exchange Commission could affect the forward looking

statements contained in this press release.