Discretix Broadens its Mobile and Flash Security Solutions with Virage Logic's NOVeA(R) Embedded Memory

In Response to the Growing Threat Posed to Premium Content and Corporate Information by the Widespread Usage of Mobile Storage Devices, Discretix has Selected Virage Logic's NOVeA Embedded Memory for Use with its CryptoCell and CryptoFlash to Offer a Comprehensive Solution to Device Manufacturers

NETANYA, Israel, San Mateo, Calif. and FREMONT, Calif., Jan 31, 2005 /PRNewswire-FirstCall via COMTEX/ -- Discretix, the leading provider of embedded security solutions for mobile devices and flash-based storage, and Virage Logic Corporation (Nasdaq: VIRL), a leading provider of semiconductor intellectual property (IP) platforms, today announced that they are cooperating to provide an advanced solution for securing sensitive data in mobile storage devices. The joint offering will result in the integration of Discretix's embedded security solutions -- CryptoFlash(TM) and CryptoCell(TM) -- with the Virage Logic's Non-Volatile Electrical Alterable (NOVeA) embedded memory.

The availability and proliferation of mobile consumer devices and their respective storage capabilities continue to increase exponentially in mobile phones and PDA's as well as removable storage devices such as flash-based USB drives and cards. The increased usage and mobility of these products has given priority to the prevention of premium content piracy and proprietary information theft.

The integration of the respective solutions helps ensure that the unique device key created and encrypted using the CyptoCell or CryptoFlash solutions, can be stored in hardware on chips in a manner which is both cost effective and secure. The solutions are designed with an open architecture that enables developers to build security into their applications rapidly and effectively. The unique device identity serves as the cornerstone for a broad range of applications such as Digital Rights Management, Secure Storage, and Over-the- Air (OTA) Device management.

"CryptoCell and CryptoFlash provide a total security solution incorporating both software and hardware components," commented Edo Ganot, EVP Sales and Business Development for Discretix. "Computationally intensive tasks such as the cryptographic algorithms are performed in hardware; the client toolkits -- compatible with a broad range of operating systems -- are implemented in software. "NOVeA complements CryptoCell and CryptoFlash, and provides a cost effective solution for creating a secure unique device key. The device key forms the basis for protected storage which is a must for a wide range of consumer and corporate applications."

"The combination of CryptoCell and CryptoFlash with NOVeA provides an optimized solution for hardware encryption," according to Jim Ensell, vice president of marketing for Virage Logic. "NOVeA provides an important extension to Discretix's market leading embedded security solutions."

About NOVeA

As the industry's first non-volatile, electrically alterable embedded memory solution that can be produced using a standard logic process with no additional mask or process steps, NOVeA is designed to be readily integrated into today's most advanced System-on-Chip (SoC) designs manufactured on leading-edge deep submicron processes. NOVeA employs a patented single poly floating gate Fowler-Nordheim technology for writing. NOVeA includes a powerful controller and instruction set in an architecture that provides 100% cell redundancy. The result is an extremely reliable, high yielding embedded NVM that can be manufactured on standard CMOS logic processes with ultra-low manufacturing cost and power consumption. NOVeA can be reprogrammed in-system up to 10,000 times and has specified endurance of 10 years. The use of NOVeA and associated development tools and views provides users with a secure design solution while reducing overall SoC mask costs, silicon costs, design risk and design time.

About Discretix

Discretix is a leading provider of embedded security technology for mobile devices and flash based storage. Discretix technology, which incorporates both hardware and software components, enables security to be incorporated into products at the chipset level so that it's transparent to the user while protecting sensitive information from malicious attacks, viruses, fraud, and theft. Discretix device toolkits fit into a wide array of devices and mobile systems to enhance security, reliability, and user experience. Discretix technology benefits the entire value chain of chip and platform vendors, device manufacturers, application providers, and operators by eliminating the need for them to devote resources to security, thereby lowering costs, increasing trust and driving increased deployment and greater revenues. For more information, please visit www.discretix.com.

About Virage Logic

Founded in 1996, Virage Logic Corporation rapidly established itself as a technology and market leader in providing advanced embedded memory intellectual property (IP) for the design of complex integrated circuits. Today the company is a global leader in semiconductor IP platforms comprising embedded memories, standard cells, and I/Os and is pioneering the development of a new class of IP called Silicon Aware IP. Silicon Aware IP tightly integrates Physical IP (memory, logic and I/Os) with the embedded test, diagnostic, and repair capabilities of Infrastructure IP to help ensure manufacturability and optimized yield at the advanced process nodes. Virage Logic's highly differentiated product portfolio provides higher performance, lower power, higher density and optimal yield to foundries, integrated device manufacturers (IDMs) and fabless customers who develop products for the consumer, communications and networking, hand-held and portable, and computer and graphics markets. The company's comprehensive quality efforts are validated in its FirstPass-Silicon Characterization Lab, which helps ensure high quality, reliable IP across a wide range of foundries and process technologies. Headquartered in Fremont, California, Virage Logic has R&D, sales and support offices worldwide. For more information, visit www.viragelogic.com.

Safe Harbor Statement 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 trends, business outlook, products, and customer 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 forecast its business, including its revenue, income and order flow outlook; Virage Logic's ability to execute on its strategy to become a provider of semiconductor IP platforms; Virage Logic's ability to continue to develop new products and maintain and develop new relationships with third-party foundries and integrated device manufacturers; adoption of Virage Logic's technologies by semiconductor companies and increases or fluctuations 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, to receive accurate information necessary for calculating royalty revenues and to collect royalty revenues from customers; business and economic conditions generally and in the semiconductor industry in particular; competition in the market for semiconductor IP platforms; and other risks including those described in the company's Annual Report on Form 10-K for the period ended September 30, 2004, and in Virage Logic's other periodic reports filed with the SEC, all of which are available from Virage Logic's website (www.viragelogic.com) or from the SEC's website (www.sec.gov), and in news releases and other communications. Virage Logic disclaims any intention or duty to update any forward-looking statements made in this news release.

NOTE: Discretix and CryptoCell are trademarks of Discretix, Ltd.

Other product and trade names mentioned herein are the trademarks of their respective owners.

SOURCE Virage Logic Corporation