Renesas Technology to Establish Dedicated Off-Shore Development Center at KPIT Cummins in India

Business Wire, Oct 4, 2006

BANGALORE, India & TOKYO -- KPIT Cummins Infosystems Limited and Renesas Technology Corp. today announced Renesas has established a dedicated off-shore development center (ODC(1)) at KPIT Cummins to strengthen its development and design capabilities. KPIT Cummins will increase the number of engineers assigned to the facility to more than 500 in three years.

Renesas has been actively expanding and enhancing its own global development and design operations and utilizing outsource design work for developing sophisticated multi-function System-on-Chips (SoCs) with a high level of design capability. The outsourcing business in India has grown substantially in recent years. In November 2004, Renesas started outsourcing semiconductor software and hardware design to KPIT Cummins. Since then, KPIT Cummins has executed design work for Renesas in a number of areas, including SoC products for use in digital consumer electronics, analog circuit designs employing high-level technology, and embedded software. Through a close relationship during the last two years, both companies recognized a value in strategic partnership and Renesas has decided to establish its first ODC at KPIT Cummins.

Currently, approximately 100 KPIT Cummins engineers are engaged in design work for Renesas. KPIT Cummins will increase the number of engineers assigned to the facility to approximately more than 500, enabling technology design of the highest quality. It is anticipated that these developments will enable Renesas to deliver high-quality products incorporating advanced technology to system developers more quickly than ever before.

"Efficient utilization of design resources is key to success," said Atsushi Asari, board director, Renesas Technology Corp. "With this ODC we will be securing the services of a team of excellent engineers and improving the design setting in which they work. In addition, we are making it possible for KPIT to perform strategic, high-quality hardware and software design work for Renesas in a secure environment. I am confident that the technology designed at the ODC will contribute to the further expansion of our business."

Expressing his pleasure, Kishor Patil, CEO and Managing Director, KPIT Cummins, informed, "This is a very important milestone in the 15 year history of KPIT Cummins. We are proud to be associated with Renesas for many years now. Semiconductor and automotive are key thrust areas for KPIT Cummins and we aim to be global leaders in this space. Japan is an important market for realizing our goal. The long-term commitment & confidence shown by Renesas is a testimony to our relationship-based focused business model. This partnership enables us to create a strong synergy of Auto & VLSI domain, we are sure that this combination will be a major growth driver for KPIT Cummins. We look forward to co-creating value with Renesas through our global engagements in the areas of Embedded Software, Cross Development Tools for Renesas processor families, SoCs Design & verification services for both Digital, Analog /Mixed Signal domains based on the Renesas Technology Roadmap. This is probably one of the largest 3rd party outsourcing agreements."

Note: ODC (Dedicated Off-Shore Development Center): a secure development center to be used exclusively for work for a specific customer. The employees who are assigned to the ODC work exclusively on jobs for that one customer.

About Renesas Technology Corp.

Renesas Technology Corp. is one of the world's leading semiconductor system solutions providers for mobile, automotive and PC/AV (Audio Visual) markets and the world's No. 1 supplier of microcontrollers. It is also a leading provider of LCD Driver ICs, Smart Card microcontrollers, RF-ICs, High Power Amplifiers, Mixed Signal ICs, System-on-Chip (SoC), System-in-Package (SiP) and more. Established in 2003 as a joint venture between Hitachi, Ltd. (TOKYO:6501)(NYSE:HIT) and Mitsubishi Electric Corporation (TOKYO:6503), Renesas Technology achieved consolidated revenue of 906 billion JPY in FY2005 (end of March 2006). Renesas Technology is based in Tokyo, Japan and has a global network of manufacturing, design and sales operations in around 20 countries with about 26,200 employees worldwide. For further information, please visit http://www.renesas.com

About KPIT CUMMINS

KPIT Cummins Infosystems Limited is the Technology consulting & engineering partner of first choice for its customers across the globe. With a major presence in IT for Manufacturing, Advanced Technology Solutions (Automotive and Semiconductor Solutions) and Diversified Financial Services verticals, the company has grown at a fast pace of above 65% CAGR over the past three years. KPIT endeavors to be a leader in 3rd party solutions & services for Automotive Electronics & Semiconductor industries.Citigroup-IMA recently identified KPIT Cummins among the top 100 transitioning medium enterprises in India (June' 06). International Association of Outsourcing Professionals has ranked KPIT Cummins, 8th among the 35 rising stars in global outsourcing (Feb'06). For more details, please visit www.kpitcummins.com