Xtensa Simplifies the Design of Highly Complex, Customized Networking Solution

SANTA CLARA, Calif. — June 16, 2003 — Tensilica, Inc. the leading supplier of configurable and extensible microprocessor cores, today announced that hot start-up Neterion, Inc. has licensed the Xtensa?V core for a new family of storage-connectivity products. Neterion is developing next generation 10 Gigabit Ethernet networking products for high performance server and network storage environments.

"A development of this complexity would be very difficult without he use of Tensilica's design methodology," Dave Zabrowski, President and CEO of Neterion, stated. "By taking advantage of Tensilica's automated approach to customizing the processor, we can get the speed we need with lower power and smaller die size. Xtensa will allow us to design innovative, high-performance 10 Gbps Ethernet networking products and establish an early lead in this emerging market."

Neterion has received significant attention for its unique approach to overcoming the performance and cost bottlenecks that exist in today's compute server and networked storage environments. The company is combining its extensive knowledge of high-speed networking architectures with cost-effective, pervasive Ethernet technology to dramatically lower the cost and improve the performance of network storage. Neterion recently began sampling its first generation product. The company's solid management team consists of experts with broad backgrounds in the semiconductor, computer and networking industries. Neterion recently closed a second funding round totaling $18 million.

"Neterion is one of the most promising start-ups in the high performance server and storage networking market," said Chris Rowan, President and CEO for Tensilica "This agreement not only proves the cost and time-to-market advantages that can be achieved using the Xtensa configurable and extensible processor, but also shows that Xtensa can be used to reach performance levels required for 10 Gbps Ethernet."

Tensilica has been a pioneer in delivering a microprocessor platform that offers both configurability and extensibility - the process of extending the processor by adding custom, designer-defined instructions or execution units. Tensilica's solution is unique because it includes the patented Xtensa Processor Generator, which automatically generates the processor's hardware implementation and software development tools simultaneously, even in cases where designer-defined instructions are added using Tensilica's TIE language. Tensilica is currently the only company offering this level of automation in processor design. Comparable platforms require designers to manually adjust compilers, assemblers, debuggers, operating systems, instruction set simulators, co-verification models and EDA implementation scripts when hardware changes are made to the processor RTL, significantly increasing design time, program cost and product risk.

Licensed by over 50 of the industry's leading semiconductor and systems companies, Tensilica's patented Xtensa microprocessor technology enables designers to deliver a wide variety of optimized SoCs for applications ranging from low-cost, low-power consumer electronics devices to high performance, multi-processor communications systems. The Xtensa architecture provides a powerful, integrated hardware and software development environment with thousands of configuration options and an unlimited range of customer-specific extensions. Because these instructions are recognized as "native" by a complete set of software development tools, developers can simultaneously tune both application software and processor hardware to meet specific speed, power and feature goals.

About Neterion, Inc.
Founded in 2001, Neterion Inc. has locations in Cupertino, California and Ottawa, Canada. Neterion delivers 10 Gigabit Ethernet hardware & software solutions that enable OEMs to solve their customers' high-end networking problems. The company's line of Xframe® products is based on Neterion-developed technologies that deliver new levels of performance, availability and reliability in the datacenter. Xframe and Xframe II include full IPv4 and IPv6 support, and comprehensive stateless offloads that preserve the integrity of current TCP/IP implementations without "breaking the stack." Xframe drivers are available for all major Operating Systems, including Microsoft Windows, Linux, Hewlett-Packard's HP-UX, IBM's AIX, Sun's Solaris and SGI's Irix. Formerly known as S2io, the company changed its name to Neterion in January 2005.

Further information on the company can be found at http://www.neterion.com/

The Neterion, Xframe, Xframe II names and logos and combinations thereof, are trademarks of Neterion, Inc. Other names are for informational purposes only and may be trademarks of their respective owners.

About Tensilica
Tensilica was founded in July 1997 to address the growing need for optimized, application-specific microprocessor solutions in high-volume embedded applications. With a configurable and extensible microprocessor core called Xtensa, Tensilica is the only company that has automated and patented the time-consuming process of generating a customized microprocessor core along with a complete software development tool environment, producing new configurations in a matter of hours. For more information, visit www.tensilica.com.

Editors' Notes:
"Tensilica" and "Xtensa" are registered trademarks belonging to Tensilica Inc. All other trademarks are the property of their respective holders.

Tensilica's announced licensees are Agilent, Astute Networks, Avision, Bay Microsystems, Berkeley Wireless Research Center, Broadcom, Cisco Systems, Conexant Systems, Cypress, ETRI, FUJIFILM Microdevices, Fujitsu Ltd., Hudson Soft, Hughes Network Systems, IC4IC, Ikanos Communications, JNI Corporation, Marvell, Mindspeed Technologies, National Semiconductor, NEC Networks, NEC Solutions, Nippon Telephone and Telegraph (NTT), Olympus Optical Co. Ltd., ONEX Communications, OptiX Networks, Osaka & Kyoto Universities, Neterion, Sony, TranSwitch Corporation, Trebia Networks, Victor Company of Japan (JVC) and ZiLOG.

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