eSilicon Introduces Comprehensive Production Services

Innovative engagement model provides time- and cost-efficient, back-end manufacturing capabilities

SUNNYVALE, Calif. — October 23, 2006 - eSilicon Corporation, a leading supplier of custom integrated circuits (ICs), today announced its new Production Services engagement model, which provides fabless semiconductor companies and system OEMs access to a comprehensive suite of back-end manufacturing services, enabling them to outsource their manufacturing operations and reduce fixed costs. With this new model, eSilicon leverages its proven in-house expertise and infrastructure to support the complete semiconductor manufacturing process, providing the benefits of lower production costs while offering access to a full range of manufacturing and engineering support services. eSilicon is the industry's first ASIC provider to offer full, turnkey production support as a stand-alone service.

"Much like system OEMs who outsourced manufacturing operations to third parties in the 1990s, many fabless semiconductor companies today are finding that the cost and complexity of managing the manufacture of their solutions is not their core competency and as a result, are seeking to outsource this activity," said Jack Harding, Chairman, President and CEO, eSilicon. "Recognizing this growing need, eSilicon has developed a program to enable our customers to outsource their manufacturing operations, improving their efficiency and lowering their fixed costs."

eSilicon® Production Services include the complete management of the semiconductor supply chain: planning, supplier management and qualification, delivery flexibility programs and total supply chain visibility through the patented eSilicon AccessT web portal. The company also offers "as-needed" access to a wide range of engineering services such as process engineering, product and test engineering, quality and reliability services and package design, which can be utilized by customers to further reduce costs, improve product reliability, migrate their supply chain to new suppliers in obsolescence situations and increase delivery flexibility.

"By utilizing eSilicon's Production Services capabilities, we were able to focus on our core competencies and not impact our overall manufacturing efficiency," said Robert Miller, Senior Vice President of Worldwide Operations, QLogic Corp.

eSilicon Production Services are available immediately. For pricing and information on the Production Services model, as well other eSilicon engagement models, contact your local sales representative or visit http://www.esilicon.com.

About eSilicon Corporation

eSilicon designs and manufactures custom integrated circuits for the world's leading electronics companies. The company serves both system OEMs and fabless semiconductor companies who apply custom silicon to create innovative new products. eSilicon designs and ships custom chips for a wide variety of markets and applications, including high-volume MP3 players, home gateways, complex storage networks, and high-speed communications devices.

Established in 2000 and lead by a team of industry veterans, eSilicon is a pioneer and award-winning market leader, widely recognized for innovation and operational excellence. The company combines in-house design and manufacturing expertise to provide customers with a low-risk, low-cost path to the best technology available in the semiconductor industry. eSilicon is headquartered in Sunnyvale, CA, with offices in Allentown, PA, New Providence (Murray Hill), NJ, Shin Yokohama, Japan, and Bucharest, Romania.

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