Dspfactory Selects Virage Logic IP for Cost Effective Non-Volatile Embedded Memory On-chip

Embedded Memory Delivers High Speeds and Low Power on a Standard Logic Process

Fremont, CA - July  11,  2002, Building on a successful partnership with Dspfactory with its Area, Speed and Power (ASAP™) embedded SRAM and ROM memories, Virage Logic Corp. (Nasdaq: VIRL), a global leader in embedded memory, today announced an agreement to license its non-volatile electrically alterable NOVeA RAM™ embedded memory IP to Dspfactory, a leading technology provider of miniature, ultra-low power digital signal processing (DSP) technology. The NOVeA RAM technology will be used in its SignaKlara™ technology and aimed at hearing aid applications. Dspfactory will use the non-volatile NOVeA RAM in its chips to reduce overall system costs and size, and provide special user information on each product. This is achieved by integrating small to medium amounts of non-volatile memory onto each chip.

The NOVeA technology allows data to be reprogrammed and erased as well as retain its data at power-off. This enables Dspfactory to store unique patient information that is read into the system on power-up. Using up to 512bits of NOVeA RAM allows Dspfactory the flexibility to store unique user or patient data in a single chip that not only is small in size, but is also manufactured in a standard logic process, combining non-volatile storage capabilities with fast data access. As a result, the company delivers highly customized programmable products with advanced capabilities that greatly enhance the wearer's listening experience.

"For Dspfactory, low voltage, low power embedded memories from Virage Logic were essential to achieve our goals for miniaturization and low power consumption," said Todd Schneider, vice president of technology at Dspfactory. "The NOVeA RAM technology provides a distinct advantage because it allows us to tailor a product to a user's unique requirements. The fact that the NOVeA RAM is silicon proven greatly reduces risk and ensures high yield and reliability during volume production."

"By offering non-volatile embedded memory solutions that work seamlessly with Dspfactory's ultra-miniature, ultra-low power, software programmable DSP technology, we enabled Dspfactory to improve their product offering and provide additional value to their customers," said Krishna Balachandran, director of product marketing at Virage Logic. "Our relationship with Dspfactory has been successful with the design of a customized, robust solution for critical low power applications. We are very pleased to work with a leader like Dspfactory, and see great value in our partnership, as it reinforces our commitment to providing non-volatile embedded memory IP solutions worldwide."

NOVeA RAM Technology

The NOVeA non-volatile embedded memory is the first in a series of NVM solutions from Virage Logic. NOVeA RAM is the only electrically alterable non-volatile embedded memory available today that is fabricated using a standard logic process. Moreover, it delivers fast SRAM data access speeds, quick program and erase cycles, and industry standard data retention. Using a standard logic process means that NOVeA RAM can be fabricated with no second poly layer, no additional mask steps, and no additional process steps. Customers pay the same for a System-on-Chip (SoC) incorporating NOVeA RAM as for any other chip produced in a standard logic process. NOVeA RAM is produced in the generic, TSMC 0.18-micron standard logic process, with no additional processing steps, using a single poly layer. Virage Logic's technology innovation is both foundry and technology node independent.

About Dspfactory

Dspfactory Ltd., a fabless semiconductor company, is a leading-edge developer of ultra-miniaturized, ultra-low power, software-programmable, digital signal processing (DSP) technology. Dspfactory's mission is to embed its unique technology ubiquitously into a wide range of market applications. Its target markets include hearing aids, headsets, personal digital assistants, personal digital audio players, embedded sensors, baseband wireless devices, cellular telephones, or any other portable, battery-powered DSP-based product where size and power consumption are as important as flexible, advanced software processing capabilities. For more information, please visit www.dspfactory.com .

About Virage Logic

Virage Logic Corp. (Nasdaq: VIRL) is a global leader in embedded memory. To meet customer design goals with the highest level of quality, Virage Logic products are production tested and optimized for area, power and speed. These products include embedded memory cores, which are critical components of communications, consumer and computer products including switches, routers, modems, cellular phones, set-top boxes, HDTVs, DVD players and PCs. In addition, the company offers software tools and custom memory design services. Virage Logic's customers include fabless semiconductor companies targeting pure-play foundries and semiconductor companies. Founded in January 1996, Virage Logic has over 200 employees and is located at 46501 Landing Pkwy, Fremont, CA 94538. Telephone: (877) 360-6690 (toll free) or (510) 360-8000. Fax: (510) 360-8099.

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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