MIPS Technologies licenses Teralogic Inc. one of its industry standard MIPS-based core for next-generation digital television processors

MIPS TECHNOLOGIES LICENSES TERALOGIC INC. ONE OF ITS INDUSTRY STANDARD MIPS-BASED? CORES FOR NEXT-GENERATION DIGITAL TELEVISION PROCESSORS
MOUNTAIN VIEW, Calif., January 11, 2001 - MIPS Technologies, Inc. (NASDAQ:MIPS, MIPSB), a leading provider of industry standard processor architectures and cores for digital consumer and network applications, today announced a licensing agreement with TeraLogic Inc., a leading developer of integrated circuits, platforms and software for digital television (DTV). Under the terms of the agreement, Teralogic will integrate a MIPS-based core into future generations of DTV integrated circuits.

The DTV market is booming from rapid consumer adoption due, in part, to reduced unit costs and improved performance. TeraLogic's incorporation of the MIPS Technologies core will further enhance its leadership position with open architecture digital consumer appliances. The company recently announced MIPS-based chipsets and development platforms for customers who want to design and deliver sophisticated home entertainment and information products more quickly at lower costs.

"TeraLogic recognizes MIPS Technologies as an industry leader for digital entertainment processor cores and we have software and platforms based on the MIPS Technologies architecture," said Jon Zierk, vice president of sales and marketing for TeraLogic. "This agreement will further strengthen our position as a key supplier of ICs, software and platforms for DTV."

"Having a digital consumer leader such as TeraLogic incorporate our flexible, high-performance processor core into its DTV platform further emphasizes our position as a primary provider of powerful microprocessor technologies to the digital market," said Muhammad Helal, vice president of North American business development and sales for MIPS Technologies. "This agreement demonstrates the leadership role MIPS Technologies has built by providing viable solutions that enhance the digital consumer experience."

MIPS Technologies processor cores already power leading game systems such as PlayStation2, Nintendo 64, leading set-top boxes from Motorola (formerly General Instruments), Sony, Philips and WebTV, and emerging consumer devices such as ReplayTV.

About TeraLogic, Inc.
About TeraLogic Inc. Founded in 1996, TeraLogic, Inc. designs integrated circuits, software and platforms for digital TV that enable the delivery of compelling entertainment, information and interactive services to the home. With products powered by TeraLogic's technologies, consumers can enjoy crystal clear video and audio, Internet, electronic commerce, electronic program guides and interactive data services. The company's customers and partners include Sony, Mitsubishi, Samsung, Access, JVC, Kenwood, Lucent, NDS, NEC, NxtWave, Oren, Panasonic, ReplayTV, Tality, Texas Instruments, TiVo, Toshiba, VividLogic, Wind River Systems and Zayante.
Headquartered in Mountain View, California, with a growing presence in Tokyo, TeraLogic currently has over 100 employees and more than $70 million in invested capital. More information about TeraLogic may be obtained by calling the company directly at (650) 526-2000 or by visiting the company's website at www.teralogic.tv.

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 Inc. and its licensees offer the widest range of robust, scalable processors in standard, custom, semi-custom and application-specific products.
Licensees currently include: Alchemy Semiconductor Inc., Altera Corporation, ATI Technologies Inc., Atmel Corporation, Broadcom Corporation, Centillium Communications Inc., Chartered Semiconductor Manufacturing Ltd., Conexant Systems Inc., EmpowerTel Networks (formerly known as Lara Technology Inc.), ESS Technology Inc., Gemplus International S.A., Integrated Device Technology (IDT) Inc., inSilicon Corporation, Integrated Telecom Express (ITeX) Inc., LSI Logic Corporation, Macronix America Inc., Metalink Ltd., Micron Technology Inc., General Instrument Corporation (acquired by Motorola Inc.), NEC Corporation, NeoMagic Corporation, NKK Corporation, Palmchip Corporation, Philips Semiconductors International B.V., Quantum Effect Devices Inc. (acquired by PMC-Sierra Inc.), QuickLogic Corporation, Sandcraft Inc., SiByte Inc., Sony Corporation, Synova Incorporated, Taiwan Semiconductor Manufacturing Company, TeraLogic, Inc., Texas Instruments Incorporated, Toshiba Corporation and Excess Bandwidth Corporation (acquired by Virata Corporation). Numerous companies utilize MIPS-based intellectual property. MIPS Technologies Inc. is based in Mountain View, Calif., and can be reached at 650-567-5000 or www.mips.com.

MIPS® is a registered trademark, and MIPS-based? is a trademarks of MIPS Technologies Inc. All other trademarks are the property of their respective companies