Tundra Signs Record Chip Deal with Ericsson - Company Business and Marketing

Cambridge Telcom Report, May 8, 2000

Tundra Semiconductor Corporation (TSE:TUN), a leader in System Interconnect for the Internet and communications infrastructure market, Tuesday announced the largest sales agreement to-date for the SCV64. The $2 million U.S. contract was signed between LM Ericsson UAB in Stockholm, Sweden, and Impact Memec/IEK AB, an authorized Tundra distributor based in Bromma, Sweden.

The record deal highlights the continuing momentum of the SCV64 and the ongoing strength of the VME bus marketplace. One of the company's original products, the device continues to generate strong revenue growth for Tundra.

The SCV64 is a high-performance VME64 Bus Bridge that enables fast and efficient routing of command and control data through the VME64 bus standard. Used in high-end embedded systems and single-board computers, the device eliminates bottlenecks in transmission between a range of microprocessors (including Motorola, Intel, and Texas Instruments) and high-speed VME64- standard data paths. The SCV64 also lets system designers get product out faster by giving them a way to take advantage of the established standard without building custom interface circuitry.

"We are obviously very happy about this latest business win," says Rick O'Connor, Tundra Vice President of Marketing and Business Development. "Our VME business continues to grow and reach new record levels quarter over quarter. Working with Ericsson, a leading telecommunications provider, and distribution partners such as IEK clearly reaffirms we have the right products at the right time for the companies building the world's communications infrastructure."

Bill Osterlund, Managing Director for Impact Memec/IEK AB in Bromma, and a key player in securing this deal, adds, "Tundra and IEK have been working successfully with Ericsson for some time now, supplying them with best-in- class semiconductor devices to support their evolving design needs. This particular agreement was a case of providing the best product for the demands of high-end switching I/O systems. Together with Tundra, we look forward to meeting the demands of the contract, and to competing successfully on many more in the future."

Tundra Semiconductor Corporation (TSE:TUN) designs, develops, and markets advanced System Interconnect for use by the world's leading Internet and communications infrastructure vendors. Tundra chips provide the latest interface and throughput features to help these companies design and deliver more powerful equipment in shorter timeframes. Applications include telecommunications, data communications, wireless communications, industrial automation, and ruggedized systems. Tundra headquarters are located in Kanata, Ontario, Canada, and sales offices are based in Mountain View, California and Maidenhead, U.K. Tundra sells its products worldwide through a network of direct sales personnel, independent distributors, and manufacturers' representatives. More information is available on-line at www.tundra.com.