MIPS Technologies and Gemplus form strategic relashionship to create a new industry standard for smart card microprocessors

MIPS TECHNOLOGIES AND GEMPLUS FORM STRATEGIC RELATIONSHIP
TO CREATE A NEW INDUSTRY STANDARD FOR SMART CARD MICROPROCESSORS

MIPS^® Architecture To Be Extended With Smart Card Features and Be Made Available for License Throughout the Industry

MOUNTAIN VIEW, California, USA and Gemenos, France -- July 25, 2000 -- MIPS Technologies, Inc. (NASDAQ: MIPS, MIPSB), a leading provider of industry standard processor architectures and cores for digital consumer and network applications, and Gemplus, the world?s number one provider of smart card-based solutions, today announced a strategic relationship to create a new standard architecture for next generation smart card chips, specially tailored for open operating system platforms such as Sun Microsystems Inc.?s Java Card and Microsoft Corp.?s Smart Card for Windows.

The agreement covers joint development of specifications for the MIPS architecture targeted specifically at smart card requirements, including advanced complex cryptography and Java execution. The companies intend to establish this architecture as an industry standard microprocessor architecture to be known as SmartMIPS^?. MIPS Technologies will openly license the SmartMIPS architecture to the smart card industry. Also as part of the agreement, the two companies are jointly developing a new ultra low power, high performance embedded 32-bit processor core that implements the new architecture. The two companies will work with one or more silicon partners to manufacture a family of smart card chips based on the new core.

?The increasing sophistication of new smart card applications will require substantially greater functionality and processing power than is available with current technology,? explained Bertrand Cambou, COO of Gemplus. ?We chose to partner with MIPS Technologies because the MIPS architecture is highly scalable, supported by excellent tools and software, and is an established industry standard. We have taken a license for the MIPS architecture that enables us to develop optimized processor cores. These cores, in addition to providing a high level of performances and security, will be highly tailored to the operating systems we will develop for the next generation of products. The resulting microcontroller chips will significantly complement our current silicon supply, within the next years, to support our expected growth in the domain of smart card products using open platform operating systems.?

John Bourgoin, CEO of MIPS Technologies, said: ?Gemplus? selection of MIPS Technologies as a partner for the next generation smart card standard is highly significant. For years MIPS Technologies has been known for its very high performance processors in a wide range of applications. This agreement clearly demonstrates that MIPS Technologies and the MIPS architecture have high value in the low cost, low power market segments. Working with Gemplus, the leader in smart cards, will allow us to create a new industry standard, SmartMIPS, in this rapidly growing market. Smart cards will grow to become one of the highest volume consumer applications in the world.?

John Hall, Vice President of European Operations at MIPS Technologies added: ?This new relationship is particularly significant for our European business. Our engineering team in Denmark was a key factor in demonstrating to Gemplus that MIPS Technologies has the expertise necessary to develop this new architecture for smart cards. European companies, like Gemplus, are providing global leadership in a number of rapidly growing digital consumer applications. Our local expertise combined with our advanced low power, high performance cores are enabling us to address several of these exciting new market segments including set top box, networking, wireless communications, automotive and, of course, smart cards. Partnering with market leaders in the development of tailored cores for specific applications, is now a fundamental element of our business strategy in Europe.?

About Gemplus
Gemplus (www.gemplus.com) is the world's number one provider of smart card based solutions for security, wireless and e-business applications. Offering consultancy services, design, software, hardware, personalization and full implementation, Gemplus works with its customers around the world to deliver comprehensive, integrated and tailor-made smart card based systems.
The Group's customers use Gemplus memory and microprocessor smart cards, smart contactless cards, electronic tags, smart objects and magnetic stripe cards to simplify and secure a wide range of applications. From Web based and mobile commerce to financial transactions, loyalty, transportation, education healthcare, identity, pay TV and physical and logical access control, Gemplus provides intelligent end-to-end solutions that bring security, convenience and ease-of-use to millions of people worldwide.
Founded in 1988, Gemplus had sales of over 767 millions of Euro ($US 817 million) in 1999, and employs almost 6,300 people in 17 manufacturing facilities, 7 R&D centres and 44 sales and marketing offices located in more than 37 countries.

For further information on Gemplus, please contact:
Gemplus Asia, Shanthi Pathmanathan
Tel:+ 65 771 9141
email: shanthi.pathmanathan@gemplus.com
Gemplus Americas, Tarvinder Karsandh
Tel: + 1 650 654 2917
email: tarvinder.karsandh@gemplus.com

About MIPS Technologies, Inc.
MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and network applications. The company drives the broadest architectural alliance that is delivering 32- and 64-bit embedded RISC solutions. The company licenses its intellectual property to semiconductor companies, ASIC developers, and system OEMs. MIPS Technologies, Inc. and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products.
Licensees currently include: Alchemy Semiconductor, Inc.; Altera Corporation; ATI Technologies, Inc.; Broadcom Corporation; Centillium Communications, Inc.; Chartered Semiconductor Manufacturing; CommQuest (IBM); Conexant Systems, Inc.; ESS Technology, Inc.; Excess Bandwidth; General Instrument Corporation; Gemplus; Integrated Device Technology, Inc. (IDT); Lara Networks, Inc.; LSI Logic Corporation; Macronix; Metalink Ltd.; NEC Corporation; NKK Corporation; Philips Semiconductors Inc.; Quantum Effect Devices, Inc. (QED); QuickLogic Corporation; Sandcraft, Inc.; SiByte, Inc.; Sony Corporation; Synova; Texas Instruments Incorporated; Toshiba Corporation; and Taiwan Semiconductor Manufacturing Company. Numerous companies utilize MIPS-based intellectual property.

MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at +1 650-567-5000. Please direct MIPS Technologies sales inquiries in Europe to: MIPS Technologies, Windmill Business Park, Whitehill Way, Swindon, Wiltshire, UK SN5 6QR. Tel +44 1793 441 470. Fax +44 1793 441 570. Email: eurosales@mips.com.

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MIPS is a registered trademark and MIPS-based and SmartMIPS are trademarks of MIPS Technologies, Inc. All other trademarks are the property of their respective companies.

Media Contacts:
Constance Sweeney
MIPS Technology
+1 650 567 5059
cks@mips.com

Severine Percetti
Gemplus
+33 442 36 67 67
severine.percetti@gemplus.com