NetLogic Microsystems Reports Inducement Grants Under NASDAQ Marketplace Rule 4350

Business Wire, August 10, 2007

MOUNTAIN VIEW, Calif. -- NetLogic Microsystems, Inc. (NASDAQ:NETL), the leader in the design and development of knowledge-based processors, today announced that in connection with the appointment of Michael T. Tate as the company's vice president and chief financial officer, the company granted Mr. Tate on July 18, 2007 an option to purchase up to 110,000 shares of the company's common stock and awarded Mr. Tate 50,000 shares of restricted stock in accordance with NASDAQ Marketplace Rule 4350(i)(l)(A)(iv). All the stock options have an exercise price equal to the fair market value on the grant date, have a 10 year term and vest over four years as follows: 25 percent on the anniversary of the vesting commencement date, and with respect to one thirty-sixth of the remaining shares subject to such option at the end of each calendar month thereafter. The award of restricted stock vests 25% on each of the first, second, third and fourth anniversaries of the vesting commencement date. Vesting of the options and restricted stock award are subject in all instances to Mr. Tate's continuous employment with the company. In the event of a change of control of the company, and if the options and restricted stock award are assumed by the successor corporation, but Mr. Tate is involuntarily terminated within 24 months after the effective date of the change of control, the vesting of Mr. Tate's options and restricted stock award will accelerate with respect to such additional number of shares as Mr. Tate would have received if he had remained employed with the company or successor corporation for the 24-month period. The company also has entered into an agreement to indemnify Mr. Tate, in addition to the indemnification provided for in the company's certificate of incorporation and bylaws. The agreement provides, among other things, for indemnification of Mr. Tate for many expenses, including attorneys' fees, judgments, fines and settlement amounts incurred by Mr. Tate in any action or proceeding, including any action by or in the right of the company, arising out of Mr. Tate's services as an executive officer of the company, any subsidiary of the company or any other company or enterprise to which Mr. Tate provides services at the company's request. In addition, on August 6, 2007, and in accordance with NASDAQ Marketplace Rule 4350(i)(l)(A)(iv), the company granted to one other new non-executive employee of the company an option to purchase a total of 7,500 shares of common stock as an inducement material to such individual entering into employment with the company. The stock option have an exercise price equal to the fair market value on the grant date, has a 10 year term and vests over four years as follows: 25 percent on the anniversary of the vesting commencement date, and with respect to one thirty-sixth of the remaining shares subject to such option at the end of each calendar month thereafter, subject in all instances to the optionee's continuous employment with the company.

About NetLogic Microsystems

NetLogic Microsystems, Inc. (NASDAQ:NETL), a fabless semiconductor company headquartered in Mountain View, California, designs, develops and markets high performance processors for a variety of advanced wireline and mobile wireless networking systems, such as routers, switches, wireless infrastructure equipment, network security appliances, network access equipment and networked storage devices. NetLogic Microsystems' processors employ an advanced processor architecture and a large knowledge or signature database containing information on the network, as well as applications and content that run on the network, to make complex decisions about individual packets of information traveling through the network. Processors from NetLogic Microsystems significantly enhance the ability of networking original equipment manufacturers (OEMs), to supply network service providers with systems offering more advanced functionality for the Internet, such as high-definition video delivery over the Internet (IPTV), voice transmission over the Internet (VoIP), unified threat management (UTM), virtual private networks (VPN), rich content delivery over mobile wireless networks, and streaming video and audio. For more information about products offered by NetLogic Microsystems, call 650.961.6676 or visit the NetLogic Microsystems Web site at http://www.netlogicmicro.com.

NetLogic Microsystems and the NetLogic Microsystems logo are trademarks of NetLogic Microsystems, Inc.