PDF Solutions® dataPOWER™ Semiconductor Yield Management System To Be Ported To Microsoft SQL Server 2005; Comprehensive YMS on Microsoft SQL Server 2005 Will Deliver Better Price/Performance, Increased Scalability, and Lower TCO

Business Wire, March 27, 2006

SAN JOSE, Calif. -- PDF Solutions, Inc. (Nasdaq:PDFS) announced that it is now porting its dataPOWER products for enterprise-wide data and yield management to Microsoft SQL Server 2005 using the Microsoft .NET Framework 2.0. By porting the dataPOWER products to the Microsoft platform, PDF Solutions can provide its customers with improved computing price and performance, increased scalability, and a lower total cost of ownership. dataPOWER on Microsoft SQL Server 2005 will be available in Q2 2006. PDF Solutions is the leading commercial provider of semiconductor process-design integration technologies and services.

"We are pleased that PDF Solutions' dataPOWER products will be offered on SQL Server 2005," said Pradeep Rathinam, general manager of U.S. ISV at Microsoft. "By adopting Microsoft .NET and SQL Server 2005 technologies for dataPOWER, PDF Solutions can now provide the world's semiconductor companies with powerful data and yield management tools on the Microsoft platform."

"More than half of the world's top semiconductor companies rely on dataPOWER," said Andre Hawit, vice president and general manager of Yield Management Solutions at PDF Solutions. "We have seen increased demand for our tools on the Microsoft SQL 2005 platform and we are pleased to put in motion a plan to satisfy that demand. I believe that a wide variety of groups within our customer companies will benefit from using dataPOWER running on Microsoft Server SQL 2005 and .NET, including the yield, product, lithography, defect, test, chip finishing, operations, and manufacturing groups."

About PDF Solutions' dataPOWER Products

dataPOWER helps semiconductor companies to increase chip development productivity and yield and reduces testing time through more effective and faster analysis of root-cause yield issues. dataPOWER provides comprehensive product characterization from fab through final test, speeding new designs and processes to yield. It includes powerful tools for yield signature analysis, data mining, shot map, probe, and bit-map analysis, plus fast identification of yield excursions and fast problem resolution, giving users even more ways to drive increased productivity.

About PDF Solutions

PDF Solutions, Inc. (Nasdaq:PDFS) is the leading provider of process-design integration technologies for manufacturing integrated circuits (ICs). PDF Solutions software, methodologies, and services enable semiconductor companies to create IC designs that can be more easily manufactured using manufacturing processes that are more capable. By simulating deep sub-micron product and process interactions, the PDF solution offers clients reduced time to market, increased IC yield and performance, and enhanced product reliability and profitability. Headquartered in San Jose, Calif., PDF Solutions operates worldwide with additional offices in Europe and Japan. For the company's latest news and information, visit www.pdf.com.

Forward-Looking Statements:

The statements in this press release regarding the availability of PDF Solutions' products are forward looking. Actual results could differ materially from those expressed in these forward-looking statements. Risks and uncertainties that could cause results to differ materially include risks associated with: any unforeseen industry changes; difficulties in modifying PDF's solutions on a timely basis; and changes in the marketplace for our solutions, including the introduction of products or services competitive with PDF Solutions' products and services.

Readers should also refer to the risk disclosures set forth in PDF Solutions' periodic public filings with the Securities and Exchange Commission, including, without limitation, its annual report on Form 10-K, most recently filed on March 16, 2006, and its quarterly reports on Form 10-Q, most recently filed on November 9, 2005. The forward-looking statements contained in this release are made as of the date hereof, and PDF Solutions does not assume any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

PDF Solutions and the PDF Solutions logo are registered trademarks, and dataPOWER is a trademark of PDF Solutions, Inc. All other trademarks used herein are the property of their respective owners.