Virage Logic Embedded Memory Selected by ARM for Foundry Program

ARM Processors to Include a Broad Selection of Silicon-Proven Embedded Memory to Meet Stringent Area, Speed, and Power Requirements

Fremont, CA - October  8,  2002, Virage Logic Corp. (Nasdaq: VIRL), a global leader in embedded memory technology, announced today an agreement with ARM [(LSE:ARM), (Nasdaq:ARMHY)], the leading provider of 16/32-bit embedded RISC microprocessor technology. Under the agreement, ARM will integrate Virage Logic's Area, Speed and Power (ASAP) embedded SRAM memory into ARM® cores including those available to IP companies participating in the ARM Foundry Program. The ARM Foundry Program is a three-way partnership that allows fabless semiconductor companies to work directly with ARM-approved foundries to accelerate time-to-market for ARM core-based system-on-chip (SoC) designs. ARM cores with Virage Logic embedded memories will be available on 90-nanometer (nm), 0.13-micron, and 0.18-micron process technologies from TSMC and Chartered Semiconductor Manufacturing.

Ideally suited for the ARM Foundry Program, Virage Logic embedded memory is equally efficient with different foundries and processes - a result enabled by features such as Virage Logic's hand-crafted leaf cells designed for each foundry's design rules. ARM also selected Virage Logic embedded memory because of Virage Logic's application-specific functionality to accommodate the broad range of embedded and portable products that employ ARM processors.

"Embedded memory plays an increasingly important role in SoC designs, and Virage Logic embedded memory offers a versatile range of area, speed, and power benefits that ARM can leverage to satisfy the diverse needs of our customers via the ARM Foundry Program," said Simon Segars, executive vice president of engineering, ARM. "With the power and versatility of Virage Logic embedded memory, we can further expand our offering of ARM cores and fuel the continued growth in ARM Powered® products, which include mobile phones, pocket PCs, vehicle control systems, networking products, consumer electronics, and thousands of evolving and emerging embedded applications."

"With more than a billion ARM processors shipped, we are very excited about the partnership with ARM and the opportunity to expand the number of products that include Virage Logic embedded SRAM memory," said Adam Kablanian, president and CEO, Virage Logic. "By providing ARM cores with integrated Virage Logic embedded memory, the ARM Foundry Program delivers powerful, silicon-proven building blocks for OEMs, while enabling them to work directly with the world?s leading silicon foundries."

ARM Joins Virage Logic's Memory Alliance Program
Concurrent with the selection of Virage Logic embedded memories for the ARM Foundry Program, ARM has joined Virage Logic's Memory Alliance Program (MAP) as an IP supplier. The program brings together all the enabling technology players including foundries, IP suppliers, EDA vendors, design service providers and test vendors in a proactive effort to foster the continued expansion and use of embedded memory in SoC designs. Since its inception, the Memory Alliance Program has grown rapidly and consistently, with 13 new companies added in the year 2002 alone.

ARM cores with Virage Logic embedded memory will be provided as a hard macrocell, ensuring maximum ease of integration and rapid time-to-market for fabless semiconductor companies participating in the ARM Foundry Program. The ASAP family of embedded SRAM memory offers a specific combination of area, speed, and power characteristics for different applications. Virage Logic memory licensed by ARM consists of the following:

High Density (HD): superior for high-volume applications, HD is optimized for area. HD is available as Single Port SRAM, Dual Port SRAM, 1-Port Register File, 2-Port Register File, and ROM.

High Speed (HS): superior for high-performance computing and networking applications, HS is optimized for speed, yet consumes lower power than other HS memories. HS is available as Single Port SRAM, Dual Port SRAM, and Multiport Register File.

Ultra Low Power (ULP): designed for battery-powered applications, ULP achieves dramatic breakthroughs in low power consumption and low-voltage operation. ULP is available as Single Port SRAM.

ARM will also license Virage Logic's latest high-speed multiport register file embedded memory, which delivers a shared memory system that enables SoC designers to increase data throughput by up to 95 percent without increasing die size.

About the ARM Foundry Program
The ARM Foundry Program is an innovative business model that enables original equipment manufacturers (OEMs) in emerging markets to gain access to ARM processor technology for use in the design and manufacture of advance SoC solutions. There are currently 44 Partners in the Foundry Program, which was launched in 2000. ARM now offers the ARM7TDMI® core, the ARM922T™ core, the ARM946E™ core and the ARM1022E™ core through the Program.

The Foundry Program offers a flexible partnership model that accelerates the time-to-market for ARM core-based designs and enables OEMs, which do not have access to fabrication facilities, to work directly with an approved ARM semiconductor foundry. Unlike a traditional ARM license, where a licensee gains both manufacturing and design rights, the ARM Foundry Program builds a three-way Partnership between ARM, an approved silicon foundry, and an OEM.

About Virage Logic
Virage Logic (Nasdaq: VIRL) is a global leader in embedded memory IP. To meet customer design goals with the highest level of quality, Virage Logic products are production tested, and optimized for area, power and speed. These products include embedded memory cores, which are critical components of communications, consumer and computer products including switches, routers, modems, cellular phones, set-top boxes, HDTVs, DVD players and PCs. In addition, the company offers software tools and custom memory design services. The company's customers include ASIC/custom SoC designers, fabless semiconductor companies targeting pure-play foundries, and semiconductor companies. Founded in January 1996, the company has over 280 employees and is located at 47100 Bayside Parkway, Fremont, Calif., 94538. Telephone: (877) 360-6690 (toll free) or (510) 360-8000. Fax: (510) 360-8099.

ARM and ARM7TDMI are registered trademarks of ARM Limited. ARM946E, ARM922T and ARM1022E are trademarks of ARM Limited. All other brands or product names are the property of their respective holders. 'ARM' is used to represent ARM Holdings plc (LSE:ARM and Nasdaq:ARMHY); its operating company ARM Limited; and the regional subsidiaries ARM INC.; ARM KK; ARM Korea Ltd.; ARM, Taiwan; ARM France SAS; and ARM China. All trademarks and copyrights are property of their respective owners and are protected therein.

SAFE HARBOR STATEMENT FOR VIRAGE LOGIC UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

Statements made in this news release other than statements of historical fact are forward-looking statements, including, for example, statements relating to Virage Logic's business outlook, new products and new relationships. Forward-looking statements are subject to a number of known and unknown risks and uncertainties, which might cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include Virage Logic's ability to maintain and develop new relationships with third-party foundries, adoption of technologies by semiconductor companies and increases in the demand for their products, the company's ability to overcome the challenges associated with establishing licensing relationships with semiconductor companies, the company's ability to obtain royalty revenues from customers in addition to license fees, business and economic conditions generally and in the semiconductor industry in particular, competition in the market for embedded memories and other risks including those described in the Company's Annual Report on Form 10-K for the period ended September 30, 2001, filed with the Securities and Exchange Commission (SEC) on December 19, 2001, and in Virage Logic's other periodic reports filed with the SEC, all of which are available from Virage Logic or from the SEC's website (www.sec.gov), and in press releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.

All trademarks and copyrights are property of their respective owners and are protected therein.