Palmchip to Include inSilicon Intellectual Property in System-on-Chip Platforms

Palmchip Licenses inSilicon Communications Technologies

SAN JOSE, Calif., January 9, 2001 - inSilicon Corporation (Nasdaq: INSN) - a leading provider of semiconductor intellectual property (IP) communications technology - today announced that Palmchip Corporation, a leader in developing and licensing re-usable, configurable semiconductor IP for system-on-chip (SOC) solutions, will be a value added reseller for inSilicon's communications technologies that will be integrated into Palmchip platform solutions.

Under the terms of the agreement, Palmchip will market and sub-license inSilicon's industry-leading portfolio of communications IP together with Palmchip's products to provide applications-targeted SOC platforms.

Palmchip's flagship CoreFrame^® integration architecture enables fast plug-and-play of multi-sourced IP. Within the CoreFrame architecture, Palmchip's PalmPak[tm] SOC development platform contains all of the peripheral functions required for a basic SOC (the CoreFrame architecture with PalmChannel controller and CPU-MChannel, DMA Channel, Flash/SDRAM memory controller, communications I/O, and basic HW/SW verification test bench).

"Palmchip is focused on reducing customer time-to-market by providing comprehensive, pre-verified SOC platform solutions," said Robert Nalesnik, vice president of marketing of inSilicon. "We're excited about our role in providing Palmchip the keystone communications technologies as part of their extremely flexible SOC development suite."

"inSilicon's lineage of communications IP expertise and silicon-proven products brings significant value to our customers," said Melissa Jones, vice president of marketing of Palmchip. "Their broad array of system-proven technologies will enable high design efficiency and device interoperability."

As part of the agreement, Palmchip will develop interfaces to the VSIA Virtual Component Interface (VCI) standard, which enables a common interface to inSilicon components. inSilicon, an early adopter of VCI, currently ships eight VCI-compatible communications products.

Palmchip is developing application-ready platforms that add specialized IP to further meet the design and time-to-delivery requirements of customers in specific embedded application markets including mobile communication and entertainment devices, PDAs, digital cameras, set-top boxes, network controllers, and office automation devices.

About inSilicon
inSilicon Corporation is a leading provider of communications platforms used by semiconductor and systems companies to design systems-on-chip that are critical components of innovative wired and wireless products. inSilicon's technology provides customers faster time-to-market and reduced risk and development cost. The company's broad portfolio of analog and mixed-signal products and enabling communications technologies, including the JVX[tm] Java[tm] Accelerator, Bluetooth, Ethernet, USB, PCI, and IEEE-1394, are used in a wide variety of markets encompassing communications, consumer, computing, and office automation.

About Palmchip
Palmchip Corporation (http://www.palmchip.com) develops and licenses configurable semiconductor IP for embedded SOC ICs used in networking, storage and portable communications and computing applications. The company offers general-purpose integration platforms, specialized IP blocks and subsystems, as well as full-service turnkey development. Palmchip's IP is based on its CoreFrame integration architecture. This technology is independent of processor, I/O or foundry, providing designers with tremendous flexibility in porting IP from multiple sources. Palmchip DirectConnect[tm] partners offer a wide range of third-party IP, software and design tools that are compatible with the CoreFrame architecture. Palmchip is a privately held company based in San Jose, California and is a member of the Virtual Socket Interface Alliance and VCX.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995:

In addition to the historical information contained herein, statements in this press release may contain forward-looking statements within the meaning of the Federal securities laws and are subject to the safe harbors created thereby. These forward-looking statements are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside inSilicon's control, that could cause actual results to differ materially from such statements. For a more detailed description of the factors that could cause such a difference, please see inSilicon's filings with the Securities and Exchange Commission including its Annual Report on Form 10-K. inSilicon disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results of inSilicon.

inSilicon, and JVX are trademarks of inSilicon Corporation. CoreFrame and PalmPak are trademarks of Palmchip Corporation. Other trademarks or registered trademarks that may be mentioned are the property of their respective owner.