NeoMagic licenses MIPS Technologies 4K' family processor cores for use in advanced internet appliances

NEOMAGIC LICENSES MIPS TECHNOLOGIES 4K' FAMILY PROCESSOR CORES FOR USE IN ADVANCED INTERNET APPLIANCES

MOUNTAIN VIEW, Calif., (August 14, 2000) - MIPS Technologies, Inc. (NASDAQ: MIPS, MIPSB) a leading provider of industry standard processor architectures and cores for digital consumer and network applications and NeoMagic Corporation (NASDAQ: NMGC), the pioneer of embedded memory and logic technology, today announced that NeoMagic has licensed the MIPS32 4K^? processor core family for use in NeoMagic?s advanced internet appliance applications. The agreement includes a license, or option to license, the entire family of MIPS32 4K 32-bit processor cores ranging from the low power MIPS32 4Kp^?, the compact MIPS32 4Km^? and the high performance MIPS32 4Kc^?. The first core to be used in Internet Appliance applications will be the high performance MIPS32 4Kc^? 32-bit processor core.

?That NeoMagic has standardized on MIPS Technologies' processor cores is significant because it gives NeoMagic a powerful base processor platform with the flexibility to tailor performance and power characteristics for their handheld Internet Appliance applications,? said Brian Knowles, vice president of marketing at MIPS Technologies, Inc. ?Our processor core technology is ideal for the SOC integration required for handheld Internet Appliances. The combination of NeoMagic?s advanced eDRAM and multimedia systems design expertise and MIPS Technologies? SOC-ready processor cores will enable NeoMagic to quickly deliver exciting new systems with consumer-friendly features.?

"We chose MIPS Technologies processor cores for several reasons," said Sanjay Adkar, NeoMagic?s vice president of corporate engineering. ?First, high performance MIPS-based cores are available in synthesizable formats, enabling us to easily integrate our proprietary circuits with a processor on a single chip. Second, the 4K processor family is scalable in both performance and operating characteristics, i.e., power consumption and die size. This enables us to reuse much of our investment in development in multiple products. Finally, there is a wide range of proven development tools that aid us in producing cost effective, highly integrated products faster.?

?More and more customers are choosing to license MIPS Technologies? cores,? said Derek Meyer, vice president of field operations at MIPS Technologies, Inc. ?Our strategy is to outperform the competition by delivering what customers want: scalable performance, flexible solutions, and industry-standard software.?

The MIPS32 4K family of processor cores is well supported by a large body of development tool vendors. Major development tools vendors supporting the MIPS architecture include Algorithmics, Ltd., Green Hills Software, Mentor Graphics, Red Hat, Inc., and Wind River Systems, Inc. MIPS Technologies, Inc. and third-party tool vendors provide a wide range of compilers, IDEs, evaluation boards, real-time operating systems, including Windows^® CE, and multiple hardware emulators and probes.

About NeoMagic
NeoMagic Corporation, based in Santa Clara, California, has pioneered the integration of DRAM, complex logic, and analog circuits into single-chip solutions. The company's proprietary MagicWare? technology increases performance while reducing power consumption, by eliminating the need to drive signals off-chip to discrete memory. NeoMagic has embarked on a strategy of enabling internet-based multimedia communications, focusing on system-on-chip levels of integration and MPEG-4 video applications to provide value-added semiconductor solutions for mobilizing digital multimedia content for the internet age. NeoMagic may be found on the World Wide Web at www.neomagic.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, 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.; Broadcom Corporation; Centillium Communications, Inc.; Chartered Semiconductor Manufacturing; CommQuest (IBM); Conexant Systems, Inc.; ESS Technology, Inc.; Excess Bandwidth; General Instrument Corporation; Integrated Device Technology, Inc. (IDT); Lara Networks, Inc.; LSI Logic Corporation; Macronix; Metalink Ltd.; NEC Corporation; NeoMagic Corporation; NKK Corporation; Philips Semiconductors; Quantum Effect Devices, Inc. (QED); QuickLogic Corporation; Sandcraft, Inc.; SiByte, Inc.; Sony Corporation; Synova; Texas Instruments Incorporated; Toshiba Corporation; and Taiwan Semiconductor Manufacturing Company. Numerous companies utilize MIPS-based? intellectual property. MIPS Technologies, Inc. is based in Mountain View, California, and can be reached at 650-567-5000 or http://www.mips.com.

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MIPS is a registered trademark and MIPS-based, MIPS32, 4K, 4Kp, 4Km, and 4Kc are trademarks of MIPS Technologies, Inc. All other trademarks are the property of their respective companies. All press materials are available on the World Wide Web via: http://www.mips.com.

Please direct MIPS Technologies sales inquiries to: Martin Kingdom, MIPS Technologies, Windmill Business Park, Whitehill Way, Swindon, Wiltshire, UK SN5 6QR. Tel +44 1793 441 470. Fax +44 1793 441 570. Email: eurosales@mips.com

Media Contact:
MIPS Technologies, Inc.
Constance Sweeney,
+1 650-567-5059
cks@mips.com

For NeoMagic; ChipShots, Inc.
Bruce LeBoss
+1 408-541-8744
leboss@chipshots.com

Account Director for MIPS Technologies in Europe
Nigel Robson
Vortex PR
+44 1481 233080 (UK)
nigel@vortexpr.com