Silicon Valley Research Says Q4 Profits Higher Than Expected - Company Financial Information

Edge: Work-Group Computing Report, May 29, 2000

Silicon Valley Research, Inc. (OTC BB: SVRI), a maker of electronic design automation ("EDA") software, announced Monday that strong software sales combined with reduced operating expenses meant its fourth fiscal quarter ending March 31, 2000 would be more profitable than anticipated.

"We are pleased to announce another profitable quarter," said James Benouis, President and CEO. "The growing success of our products running on Linux, our continued representation by the Shearwater Group, a global distributor and reseller of EDA software, and the overall strength of the chip industry were all contributing factors to our success," Mr. Benouis added.

The San Jose, Calif.-based company said profits for the three-month period would be approximately $.2 million, with sales for the March ending fiscal year now estimated at over $2 million. Although the Company still anticipates an overall loss for the fiscal year 2000 as the second half profitability will not erase the losses from the first two fiscal quarters, the year has been a benchmark in the turnaround of the Company. "We feel great about our results for the fiscal year and look forward to kicking off the 2001 fiscal year with a strong showing at the upcoming Design Automation Conference in June," said Mr. Benouis.

Strong sales were a result of the success of the Company's recent porting of its existing software to Red Hat (RHAT) Linux. The previously announced agreement with the Shearwater Group has also been a key factor in getting the Company's products in front of a larger worldwide audience.

"Shearwater's extensive customer base combined with its worldwide experienced sales force has SVR poised to maximize the success of its new product offerings, as well as take full advantage of the up-turn in the semiconductor market," Mr. Benouis added.

Silicon Valley Research, Inc. will release its fiscal fourth quarter earnings on June 1, 2000 after the market close.

Founded in 1979, Silicon Valley Research, Inc. develops, markets and supports innovative IC physical design software for floorplanning, placement, routing, custom layout and parasitic extraction of deep submicron Integrated Circuits (ICs). SVR also provides design consulting services and support to its customers. The advanced technology in SVR's production-proven tools results in dense, high yielding, high performance chips. Headquartered in San Jose, California, SVR has sales representatives in the United States, Asia, and Europe.

For additional information, visit SVR's Web site, http://www.svri.com