MIPS Technologies, Inc. reports second quarter fiscal 2002 financial results

Pro Forma Earnings in Line with Previous Guidance

MOUNTAIN VIEW, Calif., January 15, 2002 - MIPS Technologies, Inc., (NASDAQ: MIPS, MIPSB) a leading provider of industry standard processor architectures and cores for digital consumer and business products, today reported financial results for its second fiscal quarter ended December 31, 2001. The company will discuss these results and provide guidance for the third fiscal quarter in its quarterly earnings call today at 2:00 pm Pacific.

Revenue for the second quarter was $12.0 million, a 37 percent decline compared to $19.0 million for the same quarter a year ago. Revenue excluding revenue from Nintendo 64 video game products declined by 22 percent compared to the same quarter a year ago. Contract revenue was $7.3 million, a decrease of 25 percent compared to $9.7 million in the comparable period in fiscal 2001. Royalties were $4.7 million, a decrease of 49 percent compared to $9.2 million in the same quarter a year ago, due primarily to lower royalties from Nintendo 64 video game products. Royalties excluding royalties from Nintendo 64 were $3.1 million, a decrease of 13 percent compared to the same quarter a year ago.

Pro forma net loss, excluding a one-time charge for acquired in process research and development costs related to the acquisition of processor IP assets announced at the end of December, was $1.8 million for the second quarter of fiscal 2002. The actual net loss for the quarter was $3.5 million compared to net income of $4.2 million for the same quarter a year ago. Pro forma net loss per share was $0.05. The diluted net loss per share for the second quarter of fiscal 2002 was $0.09 compared to net income of $0.10 per share for the same quarter a year ago.

"Though in line with expectations, Q2 was the weakest earnings quarter in MIPS history. We took actions in October to reduce our expenses in anticipation of reduced revenues from licensing activity and delayed royalty growth," said Casey Eichler, chief financial officer. "These actions will help position MIPS to recover more quickly as the market recovers."

"I am encouraged that during the quarter we signed nine new licenses - an increase over last quarter - which brings the total post-IPO licensing agreements to more than 60. Of these, there were five new licensees who joined the MIPS community, bringing the total post-IPO licensee base to more than 40," said John Bourgoin, chairman & CEO of MIPS Technologies. "The closure rate on new license agreements for MIPS products has increased for two consecutive quarters and has returned to the level of a year ago. While we still see reluctance from many companies to make larger upfront financial commitments associated with multiple use rights, we are securing more per use agreements which should ultimately result in more license fees to MIPS."

MIPS invites you to listen to management's discussion of Q2 fiscal 2002 results and guidance for Q3 fiscal 2002 in a conference call live beginning at 2:00 p.m. Pacific. Conference call number is (913) 981-5592. Replay number is (719) 457-0820 and will be available for 5 days, beginning shortly after the end of the conference call. The access code is 429875.

Q2 2002 Highlights: Following are selected press release headlines from MIPS Technologies, and the company's licensees, systems vendors and third party providers. A complete listing of announcements for MIPS Technologies and the MIPS® architecture can be found at MIPS Technologies Website www.mips.com.

MIPS Technologies and Lexra Resolve Lawsuit
MIPS Technologies Licenses Next-Generation 32-bit Core to Texas Instruments for use in Broadband Solutions
MIPS Technologies Licenses 64-bit Processor Core to Wintegra
MIPS Technologies Appoints Loudcloud CEO to its Board of Directors
MIPS Technologies and Green Hills Software Partner to Offer "Best in Class" Application Development Environment
Virage Logic Licenses Embedded Memory to MIPS Technologies for use in 32-bit Hard Cores
MIPS-based[tm] Products Announced at Microprocessor Forum Offer High Performance, Low Power for Next-Generation Processors
MIPS32[tm] and MIPS64[tm] Architectures Enhanced for Next-Generation of Embedded Designs for the Internet Age
IDT Reaffirms Commitment to MIPS Technologies by Taking a License for MIPS32[tm] and MIPS64[tm] Architectures
Japan Space Agency Takes a License for MIPS Technologies 64-bit Core
NEC and MIPS Technologies Announce Windows CE Operating System Support for 64-bit Microprocessors
MIPS Technologies Partners with Synopsys to Provide DesignWare Users Easy Access to MIPS-based[tm] SOC Design Environment
PMC-Sierra and TSMC Collaborate to Develop System-On-Chip Products With Higher Levels of Integration
Broadcom Expands Successful SiByte[tm] Family With New Line of Industry-Leading, High-Performance Single-Core MIPS® Processors
Sony Unveils IT TV, with Wireless LAN Connection
Broadcom halves size of SiByte processor
IDT MIPS-Based[tm] Chip Solution Chosen as Best in Class by Optical Solutions Inc.
Nexsan Rolls Out MIPS-Based[tm] InfiniSAN ATAboy 2 Storage Solution
Precise Software Technologies Announces Integrated Software Support Platform for MIPS32 4Kc Processor Core
AT&T Broadband to Purchase 200,000 MIPS-Based[tm] Motorola DCT2500 Digital Set-Top Terminals
IDT and Alcatel Announce Reference Design for Complete ADSL Bridge and Router Solution; MIPS-Based[tm] Processor Included
Pioneer Ships Voyager 3000 Digital Set-top; Cheaper, Faster, Smaller, Better
Voyager 3000 Shipping to Cable Operators -- Offering Increased Functionality
Motorola Launches Two New MIPS-Based[tm] Digital Set-Tops at the Western Cable Show 2001
Toshiba Adds 64-Bit MIPS-Based Embedded Microprocessor for Cost-Effective, Next-Generation Digital Consumer Designs
MIPS Licensee, Broadcom Joins HyperTransport Technology Consortium as a Promoter Member
IDT Offers Flexibility and Price/Performance Values for Cygnet Technologies; MIPS-Based[tm] RC32334 Integrated Communications Processor Ideal for New Cygnet Product
MIPS Licensee, Alchemy Semiconductor Demonstrates Real-Time MPEG-4 Video Streaming with Media Excel Software Solution
Ahura Technology Teams With MIPS Technologies to Join the MIPS Alliance Program; Company to Deliver Development Tools for Embedded Applications
ATI Introduces MIPS-Based[tm] XILLEON 220, the World's Most Highly Integrated System-on-Chip for the Digital Set-Top Box Market
Eureka Technology Joins MIPS Alliance Program with IP Support for SoC Designs
Denali Joins MIPS Alliance Program; MIPS Taps Denali for High-Performance Memory Systems
Transitive Technologies and Alchemy Semiconductor Collaborate to Enable ARM Binary Code to Run on Alchemy's MIPS-Based Processors
Saivision Joins MIPS Technologies MIPS Alliance Program
SandCraft Delivers World's Highest Performance MIPS Processor; New SR71000 Sampling with 600MHz and 500MHz Speed Grades; 800MHz Speed Grade Imminent
NEC Announces MIPS-Based[tm] VR Series Microprocessors with Higher Performance and Extended Temperature Range Capabilities
Vesta Corporation[tm] Joins the MIPS[tm] Alliance Program to Provide Cryptography Acceleration for MIPS-based[tm] Processors
Transitive Technologies' Dynamite X/M First to Enable x86 Binary Code to Run on MIPS-Based Processors at Native Speed
PMC-Sierra Delivers First 600 MHz RM7000B[tm] MIPS Processor in 0.13 Micron Copper Technology
SandCraft's MIPS Cores to Utilize Alcatel Technology for High Performance Network Infrastructure Chips

MIPS Technologies, Inc.
MIPS Technologies, Inc. is a leading provider of industry standard processor architectures and cores for digital consumer and business products. 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, Inc. and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at 650-567-5000 or www.mips.com.

This press release contains forward-looking statements regarding future events or the future financial performance of MIPS Technologies, Inc. Actual events or results may differ materially. Many factors could cause the actual results to differ materially from those contained in such forward-looking statements, including but not limited to: that products will fail to achieve market acceptance, increases in our research and development expenses, the anticipated benefits of our partnering relationships may be more difficult to achieve than expected, the timing of or delays in customer orders, the mix of revenue generated by Nintendo 64 and non-Nintendo 64 video game products, delays in the design process, the length of MIPS Technologies' sales cycle, MIPS Technologies' ability to develop, introduce and market new products and product enhancements, and the level of demand for semiconductors and end-user products that incorporate semiconductors. With respect to MIPS Technologies, we refer you to the documents that it files from time to time with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2001 and subsequent Forms 10-Q and 8-K.

-end-

MIPS® is a registered trademark and MIPS-based[tm] and MIPS32[tm], MIPS64[tm], 4Kc[tm], and 5Kf[tm] are trademarks of MIPS Technologies, Inc. in the United States and other countries. All other trademarks are the property of their respective companies. All press materials are available on the World Wide Web via: www.mips.com

MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data) (unaudited)

			Three Months Ended December 31,		Six Months Ended December 31,
			2001	2000	2001	2000

Revenue:
	Royalties		$4,716	$9,234	$9,444	$18,098
	Contract revenue		7,262	9,737	15,029	21,053
		Total revenue	11,978	18,971	24,473	39,151

Costs and expenses:
	Cost of contract revenue		250	250	250	250
	Research and development		8,071	7,671	16,867	15,324
	Sales and marketing		4,072	3,649	8,354	7,142
	General and administrative		1,934	2,026	3,559	4,244
	Aquired in process research and development		1,737	-	1,737	-
	Restructuring		437	-	437	-
		Total costs and expenses	16,501	13,596	31,204	26,960
Operating income (loss)			(4,523)	5,375	(6,731)	12,191
Other income (expense), net			826	1,664	1,904	3,232
Income (loss) before income taxes			(3,697)	7,039	(4,827)	15,423
Provision (benefit) for income taxes			(196)	2,816	(399)	6,169
Income (loss) before cumulative effect of change in accounting principle			$(3,501)	$4,223	$(4,428)	$9,254
Cumulative effect of change in accounting principal, net of tax benefit			$ -	$ -	$ -	$ (741)
Net income (loss)			$(3,501)	$4,223	$(4,428)	$8,513

Per diluted share amounts:
Income (loss) before cumulative effect of change in accounting principle			$(0.09)	$0.10	$(0.11)	$0.23
Cumulative effect of change in accounting principle			$ -	$ -	$ -	$(0.02)
Net income (loss)			$ (0.09)	$ 0.10	$ (0.11)	$ 0.21
Common shares outstanding-diluted			38,982	40,358	38,947	40,476

MIPS TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

			December 31, 2001	June 30, 2001
			(unaudited)
		Assets
Current assets:
	Cash and cash equivalents		$104,311	$116,520
	Accounts receivable		5,593	6,443
	Prepaid expenses and other current assets		7,313	7,720
		Total current assets	117,217	130,683
Equipment and furniture, net			7,966	8,089
Other assets			9,118	1,661
			$134,301	$140,433
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable		$1,478	$3,184
	Accrued liabilities		10,268	10,472
	Deferred revenue		3,097	4,069
		Total current liabilities	14,843	17,725

Stockholders' equity			119,458	122,708
			$134,301	$140,433


	Investor Contact: MIPS Technologies, Inc. Investor Relations Bonnie Gardiner +1 650 567 7007 bonnieg@mips.com		Media Contact MIPS Technologies, Inc. Corporate Communications Lee Garvin Flanagin + 1 650 567 5180 flanagin@mips.com