Catalytic Inc. Acquires ESL Business from Celoxica

Move Significantly Expands Catalytic's Algorithm to Implementation Solutions, Adds Customer Base, Employees in Texas, Japan, England

PALO ALTO, Calif. -- Jan. 04, 2008 -- Catalytic Inc., a technology innovator that accelerates signal processing algorithm design, verification and implementation, today announced it has completed the acquisition of the Electronic System Level (ESL) Business from Celoxica Holdings plc (AIM: CXA).

The acquisition expands Catalytic's algorithm development solutions with the addition of Celoxica's C to field programmable gate array (FPGA) technology, products and services. Under terms of the agreement, a cash consideration of $3 million will be paid to acquire DK Design Suite, PixelStreams and Agility Compiler software products and the RC Series of FPGA development and prototyping boards.

In addition, 18 people will become Catalytic employees and expand Catalytic's worldwide presence with new offices in Texas, Japan and England. Catalytic will continue to support the more than 100 existing customers of the transferred products. It will add Celoxica as a customer and reseller of the DK Design Suite to deliver high-performance computing solutions to the finance, life sciences and oil and gas exploration industries.

"Complex algorithms are becoming a key component of virtually every electronic system developed for entertainment, defense, security, medical, aerospace and automotive use," said Dave Burow, Catalytic's chief executive officer (CEO). "With this move, we can synthesize the top two languages for high-level algorithm development -- C and MATLAB -- and deliver both software and hardware implementations. We now have the richest set of products and services to provide customers with algorithm acceleration, prototyping and implementation."

Adds Jeff Jussel, Celoxica's vice president, who will join Catalytic as vice president of worldwide sales for the acquired products: "This is the right move. It enables Celoxica to focus on growing its high-performance computing business and transfers the development tools to Catalytic to deliver complete algorithm to implementation solutions."

About Catalytic Inc.

Catalytic shortens the development time for signal processing algorithms through a family of software products that accelerate MATLAB execution and automatically synthesize C from MATLAB. These products are built on Catalytic's world-class compilation and synthesis technology that converts MATLAB code into C-code. For more information, visit: www.catalyticinc.com. Corporate headquarters are located at 1076A East Meadow Circle, Palo Alto, Calif. 94303. Telephone: (650) 846-2555. Facsimile: (650) 846-2557.