Press Release

Apache Achieves Fourth Consecutive Quarter of Record Results - Expands Operations Worldwide

Establishes direct sales/support offices in Japan, Taiwan, and Texas; Targets European office

MOUNTAIN VIEW , Calif. - February 3, 2004 - Apache Design Solutions, the technology leader in physical power integrity solutions for system-on-chip (SoC) designs, today announced its fourth consecutive quarter of record results. Record sales were achieved by orders from a number of new customers and renewals, including sales from three major global electronics companies. The company has been cash flow positive since the third quarter of 2003.

"We're delighted with the accelerating adoption of the new dynamic physical power flow," stated Andrew Yang, CEO of Apache. "The rate of customers coming to us with power-grid failures in spite of passing their "golden" static IR-drop verification flow is increasing rapidly with 130nm and 90nm designs. These failures are caused by simultaneous-switching outputs in the core, and the effects of on-chip capacitance and package inductance, all of which are ignored by static tools. The DvD (dynamic voltage drop) analysis capability of the RedHawk-SDL is the only solution available for identifying dynamic hotspots early and throughout the design."

One of Apache's early customers entrusted RedHawk-SDL with their first-ever 90nm tapeout of a critical production chip, using no other power analysis tools in the flow. In the last half of 2003, customers completed at least six tapeouts in the 150nm, 130nm, and 90nm process nodes, with first-pass working silicon.

"We're excited by the worldwide acceptance of this new technology, as it fills a critical gap in existing 'golden signoff flows,'" said Keith Mueller, vice president of worldwide sales and marketing. "We are seeing our new power flow being adopted by three to four major customers every quarter, demonstrating the strong need for our technology."

To support the continued growth, Apache has added direct sales and support offices in Taiwan, Japan, and Texas. In addition, the company expanded its headquarters facility in Mountain View, California, and expects to add direct European sales and support office this quarter to support its existing European customers.

About Apache Design Solutions

Apache is an EDA software supplier of innovative next-generation silicon integrity platforms for low-power, high-performance system-on-a-chip (SoC) designs. By considering all sources of noise that impacts the design, such as power, signal, package / system IO, substrate, and temperature, Apache’s silicon signoff platform enables designers of leading networking, wireless, communication, consumer, and semiconductor companies to detect, fix, and prevent design weaknesses that can result in reduced yield or failed silicon. Apache’s vendor neutral platform enables designers to adopt any industry’s standard physical design flow and is certified by TSMC’s 5.0 and 6.0 Reference Flow (NYSE: TSM). Apache has direct sales and support offices worldwide with over 40 customers, including 7 of the top 10 semiconductor companies.

Apache Design Solutions, NSPICE, RedHawk, PsiWinder, and Vectorless Dynamic are trademarks of Apache Design Solutions, Inc.

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