Press Release

Apache Closes 2004 with Over 3X Growth from the Previous Year; Achieves Eighth Consecutive Record Quarter

Expands headquarter operations to support growth

Mountain View, Calif. – January 24, 2005 – Apache Design Solutions, the technology leader in physical power integrity solutions for system-on-chip (SoC) designs, today announced that the company’s sales grew by over 3X in 2004 compared to the previous year. Q4 marks the company’s eighth consecutive record quarter.

Record sales came from a number of renewals, as well as new customers worldwide. The fiscal year brought in the company’s first European account; and new customers from Taiwan and North America. Fourth quarter sales also included worldwide deployment of the company’s flagship product, RedHawk-SDL, at a major semiconductor company. More than 30 customers worldwide have adopted RedHawk-SDL to address their dynamic physical power integrity issues.

“We saw the demand for dynamic power closure accelerate in 2004 as more designs moved to the 90nm process, and especially as designs employed advanced low power techniques,” stated Andrew Yang, CEO of Apache. “Apache leads the market in addressing this growing need by delivering the only foundry-certified and silicon-correlated dynamic physical power integrity solution in the market.”

“We are pleased with the confidence that our customers have placed in Apache’s solutions to address the critical missing link in today’s SoC power flow,” said Keith Mueller, vice president of worldwide sales and marketing. “Our continued sales growth demonstrates that our full-chip dynamic power integrity solution is becoming a must have tool in helping customers achieve silicon success and increase yield.”

To support the company’s growth, Apache will be relocating its headquarters to a new facility at 1098 Alta Drive - Suite 102, Mountain View, Calif., on February 7, 2005.

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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