Hyperstone doubles its workforce, reports excellent business in 2002.

Konstanz, Germany, December 17, 2002 - Hyperstone announced today that it has doubled the number of employees during the 2002 business year.

According to Dr. Matthias Steck, Vice President of Sales and Marketing, Hyperstone experienced double-digit growth during this business year. Both profit and sales exceeded all expectations. "While we have seen a dip in the growth of the PC and mobile communications segments, other segments of the consumer electronics market such as digital still cameras, memory cards, security and digital video solutions have shown significant growth with Hyperstone RISC/DSP processors embedded in multi-million units in 2002. The markets Hyperstone serves still didn't show their full potential and we will continue to put our efforts there.", said Dr. Steck. As an example, digital cameras using Hyperstone's RISC/DSP technology have a world market share of about 9% in 2002. Thus, and with additional processors well positioned also in flash memory solution markets, Hyperstone was able to expand its operations in Konstanz, Germany, as well as in Taiwan, and to start with a small work force in Mainland China.

About Hyperstone AG
Hyperstone, a fabless semiconductor and microprocessor design company, was founded in 1990 and is based in Konstanz, Germany. With a subsidiary in Taiwan as well as representatives, distributors and design partners worldwide, Hyperstone serves a global customer base. Product development is based in Germany and Taiwan. World-leading silicon foundries provide wafer-subcontracting services. Products include microprocessors based on Hyperstone's unified RISC/DSP architecture and microcontrollers for flash memory solutions. The product scope ranges from packaged devices such as ASSPs (Application Specific Standard Products) and ASICs (Application Specific Integrated Circuits) to licensing of intellectual property (IP), reference designs and development support. Hyperstone's products and solutions target markets such as digital imaging, mobile networking, internet appliances, flash memory solutions, communications, automotive and industrial solutions.

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This press release may include estimates and forward-looking statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and Hyperstone's' ability to distribute its products, that could cause actual results that the Company achieves to differ from such forward-looking statements. Content is subject to change without prior notice. Warranties, implied or expressed as well as liabilities for any damage resulting from using the provided information in this document are excluded. (HS-Mkt-AM-PR-001-02-12)