Morpho Technologies Receives Investment in Series C Funding and Announces New CEO; Former ARM Executive and Semiconductor Industry Leader Joins as CEO

IRVINE, Calif.--(BUSINESS WIRE)--April 18, 2005 -- Morpho Technologies, the leader in design and development of ultra high-performance Digital Signal Processors (DSP), today announced the first close of its $10 million series C funding round. Current investors, Smart Technology Ventures and BridgeWest LLC, are co-leading this round of investment. This current investment in the company's series C funding round is evidence of the traction the company is gaining in the software defined radio (SDR) market as well as broader acceptance of SDR as a technology platform for next-generation broadband wireless products.

John Rayfield has joined Morpho Technologies as CEO. John brings 18 years of electronics and semiconductor experience to the Morpho Technologies team. Following eight years with ARM, most recently as vice president of marketing for the US, John formed Novelchange Inc., a strategic business consultancy advising companies in the microprocessor, DSP and semiconductor IP space. His addition to the Morpho team as CEO leverages both his technical expertise and strategic marketing savvy to rapidly propel market adoption of the company's technology.

"John's significant experience and successful track record in bringing to market IP cores in leading edge wireless market segments was key to his selection to lead the company," said Joel Balbien, managing member of Smart Technology Ventures.

"I am very excited to be joining Morpho Technologies at a time when software radio is starting to gain market traction, and Morpho is well positioned to benefit from this trend," said John Rayfield. "The Morpho DSP technology is a pragmatic approach to delivering very high computational performance while maintaining a simple programmer's model. I believe this is the key to gaining real traction in the market."

Akbar Shokouhi, president and CEO of QThink IC Design and Morpho Technologies board member representing BridgeWest LLC, said, "We are confident that John's unique skill set in processor licensing and marketing will escalate Morpho Technologies' ability to map our technology offering to the growing demand for configurable wireless devices. This successful round of series C funding comes at a time when the maturity of the company's DSP technology and their current adoption in this emerging market is positioned to meet both the current and future demands in wireless."

Morpho Technologies will use the funding to further solidify its position in the SDR market by delivering the industry's leading ultra high-performance DSPs. The funding will enable the company to further expand product development as well as its sales, marketing and business development efforts to meet the increasing market demand for configurable mobile devices.

About Morpho Technologies

Morpho Technologies designs power-efficient, high-performance, reconfigurable digital signal processor (DSP) cores. These cores are based on the company's proprietary MSI architecture coupled with sophisticated development, simulation and design tools. Morpho Technologies supports the drive towards seamless connectivity that enables radio devices to switch from one air interface standard (AIS) to another and is committed to delivering technology designed around software defined radio technology (SDR) that will enable reconfigurable system architectures for wireless networks. For more information, please visit www.morphotech.com. Founded in 2000, Morpho Technologies is headquartered in Irvine, Calif.

About Smart Technology Ventures

Smart Technology Ventures (STV) is a leading early and mid-stage venture capital fund based in Southern California. STV has built a strong reputation for its deep technical expertise and ability to develop technology businesses. We focus on investing in core technology areas such as wireless communications, semiconductors, storage, software and broadband.

About BridgeWest LLC

BridgeWest LLC is a private equity investment company based in San Diego, California focused on early stage technology investments in the software, semiconductor, wireless infrastructure, and wireless service industries. BridgeWest seeks investment opportunities where it can add significant value through its relationships with wireless carriers, equipment manufacturers, and infrastructure development companies. BridgeWest's investment philosophy calls for active involvement with its portfolio companies including board representation and often direct operational involvement.