Philips Semiconductors takes license for SmartMIPS architecture and MIPS32 4KSc Smart card core

PHILIPS SEMICONDUCTORS TAKES LICENSE FOR SMARTMIPS™ ARCHITECTURE
AND MIPS32™ 4KSc™ SMART CARD CORE

Philips is the First Semiconductor Company to License the New MIPS-Based™
Technologies for the Burgeoning Smart Card Market

EINDHOVEN, Netherlands, and MOUNTAIN VIEW, Calif., April 11, 2001 Philips Semiconductors, a division of Royal Philips Electronics (NYSE: PHG, AEX:PHI), has licensed the SmartMIPS™ architecture and the MIPS32™ 4KSc™ smart card core from MIPS Technologies, Inc. (Nasdaq: MIPS, MIPSB), a leading provider of industry-standard processor architectures and cores for digital consumer and network applications.

The SmartMIPS architecture and MIPS32 4KSc smart card core will further accelerate consumers' adoption of multi-application smart cards. Combined with Philips Semiconductors' expertise, the new SmartMIPS low-power, high-performance embedded 32-bit processor will enable sophisticated applications and higher levels of security to be embedded in the next generation of smart cards, particularly as required by UMTS applications.

With the SmartMIPS architecture and MIPS32 4KSc smart card core, Philips Semiconductors will extend its existing technology portfolio in smart cards. "This agreement with MIPS Technologies will increase our ability to develop leading-edge smart card technology for emerging applications, which require sophisticated products with greater processing power," said Karsten Ottenberg, vice president, Identification Businesses, at Philips Semiconductors. "With our expertise in security and low-power design, Philips Semiconductors will offer complete chip solutions for high-performance applications on open operating systems platforms."

"We are delighted that Philips Semiconductors is the first semiconductor manufacturing company to license the SmartMIPS architecture and MIPS32 4KSc smart card core," said Derek Meyer, vice president of world wide field operations at MIPS Technologies. "After introducing the SmartMIPS products just two months ago, we are extremely pleased to see the rapid industry adoption of this technology. We believe that expected high demand from consumers for more powerful, secure and ‘smarter' mobile platforms will benefit all customers of our smart card solutions."

In the future, smart cards will be the delivery vehicle for personalized applications and services via mobile communications. User applications in banking, personal information management, secure network access and transport often combined on a single multi-application card will require more secure, powerful and sophisticated card products. Product designers will demand high flexibility in terms of technology and design methodology. Philips Semiconductors is able to combine its advanced expertise in the area of security, non-volatile storage and contactless technology with leading CPU architectures to create advanced products for smart cards needs.

This agreement extends the long-standing relationship between Philips Semiconductors and MIPS Technologies. Philips Semiconductors' existing licenses include the MIPS32™ and MIPS64™ architectures and the MIPS64™ 20Kc™ 64-bit processor core. The new licenses will enable Philips Semiconductors to further extend smart card-specific functions such as cryptographic processing and interpretive language acceleration.

PLEASE NOTE THAT ILLUSTRATIONS CAN BE FOUND ON THE PRESS SECTION OF THE MIPS WEBSITE AT WWW.MIPS.COM

About Philips Semiconductors
Philips Semiconductors, which had annual revenues of approximately US$6.3 billion in 2000, designs and manufactures semiconductors and silicon systems platforms. Philips Semiconductors is spearheading the emerging field of systems on silicon solutions with the innovative Nexperia™ platform and VLSI Velocity™ tool set. The company's Sea-of-IP™ design methodology allows plug and play intellectual property blocks for easily customisable products. The company is a leader in communications, consumer, PC peripherals and automotive semiconductors, which are key applications for convergence in end-user products. Philips Semiconductors is headquartered in Eindhoven, The Netherlands, and has operations throughout the world. For more information: ww.semiconductors.philips.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 and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. The company is based in Mountain View, Calif., and can be reached at +1 (650) 567-5000 or www.mips.com.

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MIPS is a registered trademark in the U.S. and certain other countries, and SmartMIPS, 4KSc, MIPS32, MIPS64, 20Kc and MIPS-based are trademarks of MIPS Technologies, Inc. All other trademarks referred to herein are the property of their respective owners.

Media Contacts:

For MIPS Technologies, Inc
Gerry Ziegler
Global PR Manager
+1 (650) 567-5059
zig@mips.com

For Philips Semiconductors
Chloe Shannon
Warman & Bannister
Tel. +44 1223 314545
ChloeS@warban.com