Cypress and Alcatel Team to Provide Gigabit Ethernet Solutions

San Jose, and Calabasas, Calif. – Oct. 16, 2001 – Cypress Semiconductor and Alcatel today announced that Alcatel's Gigabit Ethernet Media Access Controller (MAC) soft core will be available as an intellectual property (IP) core for Cypress's programmable logic devices (CPLDs).
Cypress' Programmable Serial Interface™ (PSI™) PHYs and Delta39K™ CPLDs are designed for systems companies developing networking products. Alcatel's Gigabit Ethernet MAC core, optimized for Cypress's programmable devices, will be made available through Cypress's IP Oasis program.  The program will simplify the design of Gigabit Ethernet solutions for network routers and switches, enabling customers to take advantage of low-risk, proven technology and shorten their product design cycles.
"The efficiency of the Alcatel Gigabit Ethernet MAC core gives system designers access to additional programmable logic gates in the PSI and Delta39K devices," said Chris Norris, vice president of Cypress's Data Communications Division. "Combining the programmability of these devices with Cypress's framers, network search engines (NSEs), network coprocessors, Datapath Switching Elements™ (DSEs™), and high-speed SERDES chips allows engineers to build custom Gigabit Ethernet over SONET solutions for local- and metropolitan-area networks."
"This collaboration expands our worldwide presence," said Alan Amrod, Alcatel's vice president of Enterprise Marketing. "Cypress's programmable communications chips, backed by a world-class sales and engineering force, will enable our customers to design custom Gigabit Ethernet solutions more rapidly."
Alcatel is the market leader in 10/100 Mbps and Gigabit Ethernet media access controller technology and a Principal Member of the 10-Gigabit Ethernet Alliance. The Alcatel Technology Licensing Group's silicon-proven products are currently used in approximately 80 percent of the 10/100 Mbps ports and over 50 percent of the Gigabit Ethernet ports shipping worldwide.
Alcatel's Technology Licensing Group provides 10/100 Mbps, Gigabit, triple speed 10/100/1000 Mbps, and 10-Gigabit Ethernet MAC building blocks in the form of Verilog HDL code for designers of networking ICs and system devices.  Alcatel MAC cores have been licensed to dozens of companies worldwide including Philips Semiconductor, Mitel Corporation, Nortel, NEC Electronics, Broadcom, and Lucent.  For additional information about Alcatel Technology Licensing Group products and services, visit: http://www2.ind.alcatel.com/prod_sol/internetworking/emac/index.cfm.

About IP Oasis
Cypress's IP Oasis program was designed to be the primary portal for data communications solutions built with IP cores and Cypress programmable logic devices, such as the PSI family of programmable PHYs and the Delta39K family of CPLDs. The IP cores are targeted at a variety of applications, including backplanes, line cards, switches, routers, 3G base stations, VoIP gateways, servers, mass storage equipment, interconnecting workstations, and video-transmission equipment. The IP cores are available as netlists optimized for use with Cypress's Warp™ development environment. IP Oasis, located at http://www.cypress.com/pld/ipoasis, allows users to view and select prequalified intellectual property cores and directs visitors to the IP vendor's sites for licenses and downloads.

Licensing and Availability
The Alcatel Gigabit Ethernet MAC IP core for Cypress PSI devices and Delta39K CPLDs will be available in January 2002. Netlist licensing fees will start at $30,000.

About Cypress
Cypress Semiconductor (NYSE: CY) is "Driving the Communications Revolution"™ by providing high-performance integrated circuit solutions to fast-growing markets, including data communications, telecommunications, computation, consumer products, and industrial control. With a focus on emerging communications applications, Cypress's product portfolios include high-speed physical layer devices (PHYs), network search engines (NSEs), network coprocessors, datapath switching elements (DSEs), networking-optimized and micropower static RAMs; high-bandwidth multi-port and FIFO memories; high-density programmable logic devices; timing technology for PCs and other digital systems; and controllers for Universal Serial Bus (USB).
More than two-thirds of Cypress's sales come from fast-growing communications markets and dynamic companies such as Alcatel, Cisco, Ericsson, Lucent, Motorola, and Nortel Networks. Cypress's ability to mix and match its broad portfolio of intellectual property enables targeted, integrated solutions for high-speed systems that feed bandwidth-hungry Internet applications. Cypress aims to become the preferred silicon supplier for Internet switching systems and for every Internet data stream to pass through at least one Cypress IC.
Cypress employs approximately 4,000 people worldwide with international headquarters in San Jose, California. Its shares are listed on the New York Stock Exchange under the symbol CY. More information about Cypress is accessible electronically on the company's worldwide Web site at http://www.cypress.com.

About Alcatel
Alcatel (NYSE: ALA) builds next generation networks, delivering integrated end-to-end voice and data networking solutions to established and new carriers, as well as enterprises and consumers worldwide. With sales of $29 billion (EURO 31 billion) in 2000 and 110,000 employees, Alcatel operates in more than 130 countries. For more information, visit Alcatel on the Internet: http://www.alcatel.com.
Press Contacts

Cypress Contact:
Louie Yan
(408) 943-2817
LRY@cypress.com

Alcatel Contact:
Kristen Bailey
(818) 878-4419
kristen.bailey@alcatel.com