Cadence(R) and PDF Solutions(R) to Collaborate on IC Design-for-Manufacturability Products and Roadmap

Market Wire, April, 2006

Cadence Design Systems, Inc. (NASDAQ: CDNS), the leading provider of IC and Electronic Systems Design Automation solutions, and PDF Solutions, Inc. (NASDAQ: PDFS), the leading provider of Process-Design Integration technologies for manufacturing integrated circuits (ICs), today announced their intent to collaborate on Design-for-Manufacturability (DFM) technology and products to improve IC manufacturability, yield, and reliability.

"As process geometries move to 65 nanometers and below, the goals of higher yield and reliability cannot be achieved solely during either the design or manufacturing process," said Mike Fister, Cadence president and CEO. "As the industry leaders in IC design and yield enhancement, Cadence and PDF Solutions will develop a DFM architectural roadmap and work together to provide powerful solutions designed to enable customers to improve manufacturability and increase yield and reliability of their most challenging ICs."

To cost effectively improve yields of reliable ICs, the effects of yield must be addressed seamlessly at all stages of design and manufacturing processes. Cadence and PDF Solutions intend to introduce a broad range of offerings designed to enhance their customers' abilities to understand, manage, and improve their manufacturing yields.

John Kibarian, president and CEO of PDF Solutions, Inc., said, "PDF Solutions has developed comprehensive yield models that utilize data extracted from our proprietary Characterization Vehicle® test chip infrastructure used in production at leading chip and systems companies worldwide. We believe the combination of PDF Solutions yield models and Cadence design and verification solutions will equip our customers to strategically manage and implement DFM and yield enhancement programs -- from IC design through silicon manufacturing -- and provide them significant competitive advantages."

Products will span design-for-test (DFT), digital designs, and analog mixed-signal (AMS) designs.

About Cadence

Cadence enables global electronic-design innovation and plays an essential role in the creation of today's integrated circuits and electronics. Customers use Cadence software and hardware, methodologies, and services to design and verify advanced semiconductors, printed-circuit boards and systems used in consumer electronics, networking and telecommunications equipment, and computer systems. Cadence reported 2005 revenues of approximately $1.3 billion, and has approximately 5,000 employees. The company is headquartered in San Jose, Calif., with sales offices, design centers, and research facilities around the world to serve the global electronics industry. More information about the company, its products, and services is available at www.cadence.com .

About PDF Solutions

PDF Solutions, Inc. (NASDAQ: PDFS) is the leading provider of process-design integration technologies and services for manufacturing integrated circuits (ICs). PDF Solutions enables 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 http://www.pdf.com/ .

Forward-Looking Statements

This press release includes a number of forward-looking statements, which you can identify by the use of words such as "will," "intend," "expect" and similar words and phrases. 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 Cadence's or PDF's solutions on a timely basis; and changes in the marketplace for Cadence's or PDF's solutions, including the introduction of products or services competitive with Cadence's or PDF's products and services. Readers should also refer to the risk disclosures set forth in Cadence's and PDF Solutions' periodic public filings with the Securities and Exchange Commission, including, without limitation, their respective annual reports on Form 10-K, most recently filed on March 10, 2006 and March 16, 2006, respectively. The forward-looking statements contained in this release are made as of the date hereof, and neither Cadence nor PDF Solutions assumes any obligation to update such statements nor the reasons why actual results could differ materially from those projected in such statements.

Cadence and the Cadence logo are registered trademarks of Cadence Design Systems, Inc. PDF Solutions, the PDF Solutions logo, and Characterization Vehicle are registered trademarks of PDF Solutions, Inc. All other trademarks are the property of their respective owners.