eSilicon Acquires SwitchCore's Product Lines

Value Chain Producer Expands Outsourcing Model to Provide Seamless Transition for Customers of High-Performance Switching Chips

SUNNYVALE, Calif. -- January 14, 2008 -- eSilicon Corporation, a pioneering semiconductor Value Chain Producer (VCP), today announced that it has acquired the existing product lines and certain assets of SwitchCore AB, a provider of high-performance Ethernet network switching chips. As a result of the asset acquisition, eSilicon will assume responsibility for manufacturing SwitchCore’s existing product lines, providing SwitchCore’s customers with an uninterrupted supply of devices.

Through this acquisition, eSilicon has extended its production services business model to not only include managing the production of devices for companies who don’t want or are unable to deal with the complexities of the semiconductor value chain, but also to the customers of companies that have made a decision to exit all or part of their existing businesses. Through this new service, eSilicon is able to extend the availability of these product lines by providing a continued supply of devices for the systems which incorporate them. This saves the customers of these product lines the financial and supply risks associated with the end-of-life buys they would have otherwise faced had the products been obsoleted.

“Through this agreement, we can continue to provide the value that SwitchCore’s customers have realized from the company’s high performance Ethernet switching devices, and ensure that the systems built around them will continue to be supported,” said Jack Harding, president and CEO of eSilicon.

SwitchCore was founded in 1997 around a research project at the universities of Lund and Linköping, Sweden. The purpose of the project was to develop better methods for applying CMOS technology to integrated circuit manufacturing. Its customers are manufacturers and suppliers of network equipment such as Allied Telesis, Alloptic, Huawei, Intel, and World Wide Packets.

About eSilicon

eSilicon, a pioneering semiconductor Value Chain Producer (VCP), provides a comprehensive suite of design, productization and manufacturing services, enabling a flexible, low-cost, lower-risk path to volume production. The company delivers chips to system original equipment manufacturers (OEMs) and fabless semiconductor companies who serve a wide variety of markets including the consumer, computer, communications and industrial segments. eSilicon – Enabling Your Silicon Success™. For more information, visit www.esilicon.com.