Press Release

Apache Achieves Record Third Quarter and Profitability

Customers Sign Multi-year, Multi-million Dollar Commitments

Mountain View, Calif. – October 26, 2005 – Apache Design Solutions, the technology leader in physical power integrity solutions for system-on-chip (SoC) designs, today announced that the company has achieved its eleventh record- breaking quarter. Following eight consecutive quarters of being cash flow positive, the company achieved first-time profitability based on ratable revenue recognition of time-based licenses.

With the recent purchase by Broadcom of Apache’s RedHawk power closure solution, the top three fabless semiconductor companies now have each made large multi-year commitments to this technology. Additional contributions to the quarter came from leading semiconductor companies including NEC Electronics ( Japan) and Toshiba, as well as from existing customers such as Azul Systems who increased their number of RedHawk licenses.

“Achieving profitability marks a significant milestone for Apache and demonstrates the long term stability of the company,” said Andrew Yang, CEO of Apache. “Customers are responding by making long term commitments to our solutions and significantly increasing the number of licenses used throughout their companies. We are pleased that they continue to place their confidence in our technology.”

“Several of the new customer orders resulted from extensive competitive benchmarks involving as many as five vendors. These strategic wins strongly demonstrate Apache’s leadership position in this critical market space,” said Keith Mueller, vice president of worldwide sales. “Apache’s continuing success is a strong endorsement by our customers that we are delivering the solutions and support to address their needs.”

About RedHawk

RedHawk is a full-chip vectorless dynamic physical power integrity solution for SoC power closure sign-off of 130nm, 90nm, and 65nm designs. Certified in TSMC’s 5.0 and 6.0 Reference Flow and correlated with silicon measurements and SPICE, RedHawk addresses dynamic power issues such as simultaneous switching output (SSO) for core, memory, clock, and I/O, as well as the effects of on-chip inductance, package RLC , and decoupling capacitance.

RedHawk enables designers to identify dynamic “hot spots,” examine the impact on timing, accurately pinpoint the cause of dynamic voltage drop, and automatically repair the source of supply noise. With RedHawk’s integrated transistor-level characterization and unsurpassed capacity, designers can effectively reach power closure sign-off for high performance SoCs, including those utilizing advanced low-power design techniques such as leakage current control, power gating, multiple voltage domains, and multiple threshold transistors.

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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