Imagination Technologies Formally Launches U.S. Operations;

Leading SoC IP Provider to Major Semiconductor and Consumer Electronics Vendors Will Also Target Inventive, Fast-Moving, Smaller U.S. Companies

SAN DIEGO--June 20, 2006--Imagination Technologies, a U.K.-based leader in system-on-chip intellectual property (SoC IP), today announced it has formally established operations in North America with the opening of a U.S. headquarters in San Diego. The company already has numerous U.S. customers, including Intel, Texas Instruments, Centrality, and Freescale Semiconductor, which recently signed a multiple-use license agreement with Imagination.

Heading Imagination's U.S. operations will be Peter McGuinness, director of business development, and Graeme Finlayson, director of sales.

"This opens up many new opportunities for us, as we expand the scope and breadth of our products and services in the U.S.," said Imagination Technologies CEO Hossein Yassaie. "Peter and Graeme's strong sales, marketing and technology expertise will enable us to effectively target -- and better serve -- not just the giant semiconductor manufacturers, but also the inventive, fast-moving, smaller companies now proliferating in America."

Imagination Technologies numbers seven of the world's top 10 semiconductor vendors among its customers and is the leading supplier of graphics IP for handheld devices and other markets.

"With today's tight supply lines, time-to-market pressures, and dynamics of technology, suppliers like Imagination Technologies know how crucial it is to be closer to their customers, and potential customers," said Jon Peddie, president of Jon Peddie Research, a leading research and consulting firm for graphics and multimedia. "This latest expansion -- with Peter McGuinness and Graeme Finlayson in place -- is an example of Imagination's understanding of these important issues."

McGuinness, who joined Imagination in April 2005, has an extensive background in the architecture and design of integrated circuits and systems for graphics and video, where he holds a number of patents and patent applications. He began his career as a silicon chip designer in 1980 at Plessey Research in England, leaving in 1983 for start-up Inmos, Ltd. (now part of STMicroelectronics), where he moved into CMOS circuit design and was later responsible for program management of the company's workstation graphics adapters; his most recent position there was research director and manager of its San Diego-based Advanced Systems Technology unit.

Finlayson, with Imagination since August 2005, has more than 20 years of technology sales experience. Prior to joining the company, he was director of worldwide sales for Austin, Texas-based StarCore, which develops and licenses DSP core technologies, and spent five years as director of sales for San Jose, Calif.-based CEVA, which licenses DSP cores, multimedia, GPS and storage platforms to the semiconductor industry. His career also includes 11 years with Fujitsu Microelectronics in a variety of senior sales management positions in both the U.K. and U.S. Finlayson holds a degree in electrical engineering from Guilford Technical College in the U.K.

Imagination Technologies' new U.S. headquarters is located at 16870 West Bernardo Drive, Suite 407, San Diego, Calif. 92127; telephone 858-674-6644; fax 858-674-6645.

About Imagination Technologies

A major provider of SoC IP, Imagination Technologies develops market-leading graphics, video and display cores, real-time multi-threaded DSP/RISC processors, and communication and broadcast technologies for the mobile, consumer electronics, automotive and PC markets. It supplies licensable IP, supported by advanced development tools, to semiconductor and consumer electronics vendors globally. Imagination Technologies' world headquarters is in the United Kingdom, and the company is publicly traded on the London Stock Exchange (FTSE:IMG). Web address is www.imgtec.com.