Cadence and NXP Sign Multi-Year Strategic Agreement; Cadence Named Primary EDA Supplier to NXP

Cadence Design Systems, Inc. (NASDAQ: CDNS), the leader in global electronic-design innovation, and NXP Semiconductors, the independent company founded by Philips, today announced that they have signed a multi-year strategic agreement that positions Cadence® as NXP's primary electronic-design-automation (EDA) solutions partner.

This strategic approach of consolidating with Cadence will enable NXP to streamline its supply lines and increase operational effectiveness through a stable and reliable source of automated integrated-circuit (IC) design and verification products. The move represents a significant milestone in the more than 15 years of collaboration between the two companies.

The agreement provides the framework for Cadence and NXP to develop and deploy IC design and design-verification methodologies required to extend NXP's leadership position as the innovator of semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars, and a wide range of other electronic devices.

"NXP signed this agreement to make Cadence its strategic partner for EDA products and technologies after a full and exhaustive evaluation process. Cadence was the only company able to provide the fully integrated, front-to-back, analog and digital solutions that we require," said Rene Penning de Vries, CTO of NXP Semiconductors. "We need to work with leading companies who can support our technology-innovation and business-development needs. The depth and breadth of capabilities and alignment of vision that Cadence brings to the relationship will be a tremendous strength."

As the industry leader, Cadence provides an unmatched EDA product depth and breadth, and is also the clear low-power chip-design solutions leader. As NXP's primary EDA solutions provider, all design flows and methodologies will be concentrated around Cadence software, hardware and services methodologies. The agreement provides NXP with access to the full range of Cadence analog/mixed-signal (AMS), radio-frequency (RF), digital front and backend, system in package (SiP), and verification technologies.

"At Cadence we invest heavily in R&D and retain the brightest and most dedicated minds in order to engage with the best companies and add value at the highest level," said Mike Fister, Cadence president and CEO. "NXP is a top 10 semiconductor company, with a long heritage of electronics innovation and a bright future in the electronics industry. I am excited about extending our long relationship with NXP at the level of a strategic partner."

NXP and Cadence also agreed to collaborate and jointly invest in the next generation of electronic-system-level (ESL) technologies, flows and solutions. NXP will provide its deep knowledge of the challenges and benefits of designing at this higher level of abstraction. Cadence will contribute its expertise in software design in this area and will also develop the underlying engines upon which flows and solutions will be built.

About NXP

NXP is a top 10 semiconductor company founded by Philips more than 50 years ago. Headquartered in Europe, the company has 37,000 employees working in more than 20 countries and posted sales of EUR 5 billion ($7 billion) in 2006. NXP creates semiconductors, system solutions and software that deliver better sensory experiences in mobile phones, personal media players, TVs, set-top boxes, identification applications, cars and a wide range of other electronic devices. News from NXP is located at www.nxp.com .

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, consumer electronics, networking and telecommunications equipment, and computer systems. Cadence reported 2006 revenues of approximately $1.5 billion, and has approximately 5,200 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 .

Media contact information: Cadence Design Systems Adolph Hunter Direct: 1 408 428 5882 publicrelations@cadence.com NXP Europe: Lieke de Jong-Tops Tel. 31 40 27 25202 lieke.de.jong-tops@nxp.com North America: Rebecca Samuel 1 408 474 8769 rebecca.samuel@nxp.com Greater China: Jennis Li Tel: (8621) 2205 2487 Jennis.li@nxp.com APAC: Mark Chisholm Tel. 65 6882 5092 mark.chisholm@nxp.com