Agere Systems Adopts Virage Logic STAR Memory System to Boost Manufacturing Yield on Traffic Management Network Processor

STAR Memory System raises embedded memory yield while lowering test costs for next generation network chips

FREMONT, Calif., April 19, 2004 ¡X Virage Logic Corp. (Nasdaq: VIRL), a leading provider of best-in-class semiconductor IP platforms, today announced that Agere Systems (NYSE: AGR.A, AGR.B) has adopted Virage Logic¡¦s Self-Test and Repair (STAR) Memory System„§. Agere is using the system to implement an embedded memory test and repair architecture for its second-generation multi-service traffic management network processor, the APP550.
Agere enhanced the yield and improved time to manufacture on the APP550 by taking advantage of the tightly integrated test and repair technology provided in Virage Logic¡¦s STAR Memory System. The APP550 is a standalone network processor that delivers wire-speed processing to advanced terabit digital subscriber line access multiplexers, routers, wireless base stations, and other communications networking equipment.
The large amounts of embedded memory in Agere¡¦s APP550 network processor requires high quality testing to cover all memory defect types. The traffic management chip benefits from increased manufacturing yield driven by the tight integration of the STAR Memory System to the manufacturing and test flow. Virage Logic¡¦s STAR Memory System, a tightly integrated test and repair solution tuned to each individual memory, has successfully increased yield in manufacturing the APP550 in a one-pass flow, eliminating the need for cumbersome add-on test and repair flows.

¡§The diagnostic capabilities of Virage Logic¡¦s STAR Memory System enabled us to lower our test costs and improve our yield and time to manufacture,¡¨ said Craig Garen, engineering director with Agere Systems. ¡§We required an integrated test and repair solution, at an economical test cost, to achieve our yield targets and strict quality objectives for our advanced network processors. The STAR Memory System enabled us to achieve these goals and accelerated our development of products enabling affordable broadband services.¡¨
¡§Faced with challenges in manufacturing multi-megabit embedded memories on large SoC designs, Agere selected the STAR Memory System to enhance quality and boost yield for its advanced network processor,¡¨ said Jim Ensell, vice president of marketing for Virage Logic. ¡§Agere¡¦s success with the STAR Memory System is a real validation of our self-test and repair technology and underscores Virage Logic¡¦s technology leadership in this critical area.¡¨

About The Virage Logic STAR Memory System
The STAR Memory System provides cost effective embedding, on-chip testing and repairing of multi-megabit memories. The system includes High-Speed, High-Density and Ultra-Low-Power memories to address the unique needs of SoC designers. The system consists of one or more STAR and/or Area, Speed and Power (ASAP) SRAM or ROM Memory blocks, a STAR Processor, and a STAR Fuse Box. Within the same environment, ASAP Memory sub-megabit memories can be tested and used. The STAR Memory System can potentially save millions of dollars in recovered silicon, substantially reduce test costs, and achieve shorter time-to-volume.

About Agere
Agere Systems is a premier provider of advanced integrated circuit solutions for high-density storage, wireless data and multiservice networking applications. The company is the market leader in providing chips for desktop, mobile and consumer electronics hard disk drives.  Agere's wireless data portfolio includes industry-leading solutions for data-capable cellular phones, as well as Wi-Fi/802.11 solutions for wireless LANs and computing applications. Agere also provides custom and standard networking solutions to move information across wired, wireless and enterprise networks. Agere's customers include the leading PC manufacturers, wireless terminal providers, network equipment suppliers and hard disk drive providers. More information about Agere Systems is available from its web site at http://www.agere.com.
 
About Virage Logic
Virage Logic Corporation (Nasdaq:VIRL) is a leading provider of best-in-class semiconductor IP platforms based on memory, logic, and I/Os that are silicon-proven and production ready. Virage Logic meets market demands for cost reduction, while improving performance and reliability for fabless and integrated device manufacturer (IDM) companies focused on the consumer, communications and networking, handheld and portable, and computer and graphics markets. Virage Logic is headquartered in Fremont, California and has sales and support offices worldwide. For more information, visit www.viragelogic.com or call (877) 360-6690 toll free or (510) 360-8000.

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SAFE HARBOR STATEMENT FOR VIRAGE LOGIC UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
Statements made in this news release other than statements of historical fact are forward-looking statements, including, for example, statements relating to Virage Logic's business outlook, new products and new relationships. Forward-looking statements are subject to a number of known and unknown risks and uncertainties, which might cause actual results to differ materially from those expressed or implied by such statements. These risks and uncertainties include Virage Logic's ability to maintain and develop new relationships with third-party foundries, adoption of technologies by semiconductor companies and increases in the demand for their products, the company's ability to overcome the challenges associated with establishing licensing relationships with semiconductor companies, the company's ability to obtain royalty revenues from customers in addition to license fees, business and economic conditions generally and in the semiconductor industry in particular, competition in the market for embedded memories and other risks including those described in the Company's Annual Report on Form 10-K for the period ended September 30, 2002, filed with the Securities and Exchange Commission (SEC) on December 16, 2002, and in Virage Logic's other periodic reports filed with the SEC, all of which are available from Virage Logic or from the SEC's website (www.sec.gov), and in press releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.

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