ViXS Systems Chooses Virage Logic Embedded Memories for Video-Over-Networks Solution

Expertise, Product Maturity and Support Clinch Deal for Virage Logic

Fremont, CA - January  7,  2003, Virage Logic Corp. (Nasdaq: VIRL), the leading provider of best-in-class application-optimized semiconductor IP platforms, announced today that ViXS Systems has selected the Virage Logic Area, Speed and Power (ASAP) Memory™ product for its innovative IP-based video distribution system that delivers broadcast-quality video over networks to HDTVs, TVs, PCs, laptops, webpads, PDAs and other devices.

ViXS incorporated the Virage Logic ASAP Memory High Density (HD) embedded SRAM memories into two System-on-Chip (SoC) devices: XCode, a content-secured multi-stream real-time transrating and transcoding chip, and the Matrix, a high-performance IEEE 802.11 wireless communications processor optimized for multi-stream video networks. The Matrix device complements the XCode video networking processor for wireless video gateways and high-performance video clients.

To ensure the compatibility and reliability necessary for volatile wireless networks, ViXS offers an end-to-end solution with chips, software, and a reference platform. The need for reliable integration, as well as a superior customer support reputation, expertise and product performance benefits led ViXS to choose Virage Logic. As a result, both the XCode and the Matrix leverage the area, speed and power benefits of Virage Logic embedded memories to help achieve optimal video distributing over IP networks.

"We were able to quickly and effectively achieve the necessary levels of Quality of Service (QoS) for our digital video networks, especially in the consumer space, because of Virage Logic's technical expertise, product maturity and level of support," said Hugh Chow, vice president of engineering, ViXS. "Because of our past experience in dealing with Virage Logic, we could depend on their team to deliver the products, as well as the expertise to seamlessly integrate Virage Logic embedded memories into our solution."

ViXS' XCode ASIC, now sampling with a Software Design Kit (SDK) and reference board, works alone or in conjunction to enable a transmission device to send multiple broadcast-quality video streams over wireless or wired Local Area Networks (LANs). The streams can be displayed on multiple receiving devices; for instance, a single set-top box can deliver broadcast TV to multiple TV sets or computers throughout a home or public facility, with each device receiving different programming.

"ViXS' groundbreaking video-over-IP solution is just one example of the wave of innovations enabled by SoC designs, which are increasingly dependent on embedded memory to provide the necessary speed, area conservation and energy efficiency," said Krishna Balachandran, director of product marketing, Virage Logic. "By working closely with innovators like ViXS, the Virage Logic team gains new insight into the potential applications of our embedded memories, enabling us to continually evolve our technology to effectively meet our customers design goals."

About The Virage Logic ASAP Memory Product Line
Virage Logic embedded memories are developed using memory design techniques that achieve unprecedented results in yield, area, speed, and power. The ASAP Memory product line consists of three families:

• High Density (HD): Superior for high-volume applications, HD is optimized for area. The HD product is available as Single Port SRAMs, Dual Port SRAMs, 1-Port Register Files, 2-Port Register Files, and ROMs.
• High Speed (HS): Superior for high-performance computing and networking applications, HS is optimized for speed, yet consumes lower power than other HS memories. The HS product is available as Single Port SRAMs, Dual Port SRAMs, and Multiport Register Files.
• Ultra Low Power (ULP): Designed for battery-powered applications, ULP achieves dramatic breakthroughs in low power consumption and low voltage operation. The ULP product is available as Single Port SRAMs.

Incorporating Virage Logic's ASAP Memory HD Single Port SRAMs and 2-Port Register File, ViXS' XCode chip is being fabricated using the TSMC 0.18-micron standard CMOS process. The XCode chip uses 113 instantiations of 23 unique memories for a total of 833,720 bits, while the Matrix chip uses eight instantiations of four unique memories, for a total of 491,520 bits.

About ViXS
Founded in January 2001, ViXS Systems is a fabless semiconductor and software developer creating end-to-end solutions for digital video networking and communications applications. As the leading developer of video-over-IP networking solutions, ViXS chipset and network management software provide unprecedented capabilities for processing, managing and distributing of secured broadcast-quality video across standards-based wired and wireless networks. For more information on the company and its products, visit www.vixs.com or contact ViXS headquarters at 2235 Sheppard Avenue East, Suite 1700, Toronto, ON Canada M2J5B5; phone: (416) 646-2000; fax:(416) 646-1042.

About Virage Logic
Virage Logic (Nasdaq: VIRL) is the leading provider of best-in-class application-optimized semiconductor IP platforms based on memory, logic and design tools that are silicon proven and production ready. Virage Logic meets market demands for cost reduction, while improving performance and reliability for fabless and integrated device manufacturer (IDM) companies focused on the consumer, communications and networking, handheld and portable, and graphics markets. For further information, visit www.viragelogic.com or call (877) 360-6690 (toll free) or (510) 360-8000

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.

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