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Cadence to Acquire Renowned Bell Labs EDA Group; Acquisition and Technology Research Agreement to Advance System-on-a-Chip Design and Verification.

SAN JOSE, Calif.--(BUSINESS WIRE)--Aug. 28, 1998--Cadence Design Systems, Inc. (NYSE:CDN) and Lucent Technologies Inc. today jointly announced a multi-faceted agreement under which Cadence will acquire the Bell Labs Design Automation Group (BLDA), and engage in a three-year relationship involving continued provision of BLDA electronic design automation (EDA) services to Lucent. Terms relating to the BLDA acquisition, which is subject to regulatory approval, and the purchase of Cadence software products and services were not disclosed.

As a result of the acquisition, more than 100 BLDA employees, including software engineers, consulting service experts, and 40 doctorate technologists renowned in their fields, will join Cadence, contributing to the company's product development, research, and consulting services expertise for the computer, communications, and consumer electronics markets.

The two companies also announced a joint development program between Cadence Labs and Bell Labs research organizations to advance the state of the art in chip verification and other advanced tools for next-generation applications. The BLDA group has developed an advanced suite of high-level design verification tools and methods used internally at Lucent and by a growing number of other semiconductor vendors and systems manufacturers. The assimilation of BLDA technology and expertise into Cadence creates the world's largest EDA research and development team concentrating on commercial products for multi-level, full-system verification of systems-on-a-chip (SOC).

Bill Evans, head of the BLDA group said, "About eight months ago, it became clear that our products were achieving significant recognition in the market and that additional resources were needed to advance our innovative technologies in the commercial arena. The agreement we are announcing today brings focus, resources, and worldwide support to allow us to achieve that goal. The ultimate winner will be our customers."

"This group brings tremendous resources to bear on the challenges facing SOC designers," said Glenn Abood, vice president and general manager of the Cadence Logic Design and Verification Business Unit. "The BLDA technologies and the know-how of its researchers, developers, and consulting service experts complement perfectly our growing software and services businesses. This agreement provides a means for bringing the BLDA expertise and technology to other Cadence customers."

"This is a smart move for both companies, one that allows each of us to focus on what we do best," said Ernie Rodriguez, vice president of Advanced Technologies at Lucent's Bell Labs. "With the addition of the BLDA production-proven technology and consulting expertise to its portfolio, Cadence strengthens its focus on what it does best -- providing world-class EDA software and services to customers, including Lucent. This move is consistent with our efforts to focus the full complement of technology and design talent at Lucent on what we do best -- making the things that make communications work."

Leading-edge Technology Portfolio

The BLDA technology portfolio acquired by Cadence includes the FormalCheck(R) model checker, CLOVER(R) physical verification tool suite, ATTSIM analog/digital/mixed-signal simulator, and the Celerity transistor-level simulator. Product roadmaps and integration plans for the BLDA products are currently in development.

The FormalCheck system is a mathematical means of exhaustively validating that a design meets a set of user-defined specifications. It finds problems early in the design cycle; problems that may never be detected or that may take too long to detect using simulation. The combination of FormalCheck with the interleaved native compiled code architecture (INCA) of the Cadence logic simulation products and recently introduced Affirma(TM) equivalence checker will result in the industry's only integrated flow that applies formal methods, dynamic simulation, and static timing analysis in the functional verification of complex blocks, integration architectures, and entire SOCs from early concept through final implementation. Integration of the Cadence and BLDA formal verification tools is facilitated by the large degree of similarity between their underlying technologies.

The CLOVER system offers hierarchical capabilities to address the VLSI layout verification problem of deep submicron designs. It provides comprehensive and accurate extractions for MOS, BJT, distributed RC, resistance and a variety of capacitances.

ATTSIM is a mixed-mode, mixed-signal simulator with an innovative architecture that performs efficient full-chip simulation of mixed-signal (analog/digital) integrated circuits and systems through the use of partitioning and event-driven simulation techniques that exploit latency and multi-rate behavior in the circuit.

Celerity is a third-generation circuit simulation system that provides accurate verification of deep submicron technologies providing a variety of simulation algorithms for ac, dc and transient analysis, as well as several unique analyses for analog and RF circuits. A variety of time domain and non-linear frequency domain techniques are available for the analysis of RF circuits, including noise. In addition, optimization and procedural simulation capabilities enable designers to improve their design productivity.

BLDA customers include Cray Research Inc., Hewlett Packard, Matsushita, National Semiconductor, NTT Research Labs, Ricoh, Silicon Graphics, Inc., Texas Instruments, and others.

About Lucent

Lucent Technologies, headquartered in Murray Hill, NJ, designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Labs is the research and development arm for the company. For more information on Lucent Technologies, visit the Lucent web site at http://www.lucent.com.

About Cadence

Cadence Design Systems, Inc. provides comprehensive services and software for the product development requirements of the world's leading electronics companies. Cadence is the largest supplier of software products, consulting services, and design services used to accelerate and manage the design of semiconductors, computer systems, networking and telecommunications equipment, consumer electronics, and a variety of other electronic-based products. With more than 4,400 employees and 1997 annual sales of $916 million, Cadence has sales offices, design centers, and research facilities around the world. The company is headquartered in San Jose, Calif. and traded on the New York Stock Exchange under the symbol CDN. More information about the company, its products and services may be obtained from the World Wide Web at http://www.cadence.com.

Note to Editors: Cadence is a registered trademark, and the Cadence logo and Affirma are trademarks of Cadence Design Systems, Inc. All others are properties of their holders.

CONTACT: Cadence Design Systems, Inc.

Laurel (Laurie) Stanley, 408/428-5019

las@cadence.com

or

Lucent Technologies, Bell Labs

Dick Muldoon, 908/582-5330

rpmuldoon@lucent.com
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