MOUNTAIN VIEW, California and LISBON, Portugal, August 27 /PRNewswire/ --

- Acquisition of Chipidea Microelectronica S.A. Propels MIPS to #2
Ranking

MIPS Technologies, Inc., (Nasdaq: MIPS), a leading provider of
industry-standard processor architectures and cores for digital consumer,
networking, personal entertainment, communications and business applications,
today announced that the company will acquire privately-held Chipidea
Microelectronica S.A, the world's leading independent supplier of analog and
mixed signal intellectual property (IP) for the wireless, digital consumer
and connectivity markets. The combined entity becomes the second largest
semiconductor design IP company and the number one analog IP company
worldwide, based on Gartner, Inc.'s recent 2006 rankings. The acquisition
creates a unique technology portfolio and delivers a powerful value
proposition to customers as they gain access to a broad array of leading
analog IP that fuels next-generation SoC (system on chip) designs.

Under the terms of the transaction, MIPS Technologies will pay an
aggregate of US$147 million in cash, with an additional performance-based
milestone payment of 610,687 shares of MIPS Technologies' common stock in
2009. At today's closing, MIPS Technologies will make an initial payment of
approximately US$120 million from its current cash reserves with the balance
released from escrow within two years subject to an indemnification holdback
and deferred payments for the Chipidea co-founders remaining with the
company.

"Analog represents an essential component of our IP growth strategy and
has become one of the key strategic considerations in customer designs
today," said John Bourgoin, president and CEO of MIPS Technologies. "Chipidea
is the clear leader in analog IP with a broad product base, an impressive
array of customers worldwide and excellent financials. The synergies of MIPS
Technologies and Chipidea are compelling for our customers' SoC design
initiatives. With Chipidea's impressive penetration across a broad range of
high-growth embedded markets, and MIPS Technologies' relationships with a
large array of customers, we expect to reap significant sales growth from the
new partnership. We can offer a more comprehensive, integrated design
solution, better serve existing markets, and strategically enter high-growth
segments where analog is essential."

"MIPS Technologies' commitment to the processor IP market remains
unwavering," added Bourgoin. "We are fully committed to extending our
leadership processor roadmap as we integrate the Chipidea family into MIPS
Technologies."

Combined Market Reach and Industry Leadership

The worldwide semiconductor IP market grew 24% to US$1.8 billion in 2006,
according to Gartner, Inc. Today, the analog and mixed-signal IP market
represents the fastest growing segment in the semiconductor IP market.

Over the last 10 years, Portugal-based Chipidea has offered the widest
array of state-of-the-art RF, analog and mixed-signal technologies
worldwide-rapidly achieving prominence in high-growth, high-volume
markets, including wireless, digital media, power management, data transfer
and connectivity. Chipidea's deep analog expertise has uniquely positioned
the company as the industry's exclusive provider of outsourced analog IP that
has achieved significant scale-delivering a comprehensive and diverse library
of proven IP in today's leading processes across a wide array of foundries.
The advanced analog and mixed-signal IP architectures from Chipidea's
extensive portfolio enable next-generation SoC designers to integrate silicon
proven functionality previously available only to large integrated device
manufacturers (IDMs). Since its founding, Chipidea has outpaced the industry
by scoring double-digit growth in revenue for each of its 10 years in
existence.

Within the last five years, Chipidea has grown its customer base from 20
to more than 150 -- including 13 of the world's top 15 semiconductor
companies. Gartner consistently ranks Chipidea either first or second in
design IP for A/D and D/A converters, wireless interfaces, and connectivity
solutions-which includes USB today, and in the future will address HDMI and
other emerging high speed interface standards.

"The integration of two market leaders in the semiconductor IP market
provides an exciting and powerful customer proposition," said Jose Franca,
president and CEO of Chipidea Microelectronica. "Our 10-year commitment to
delivering the highest quality products has been the cornerstone of our
market leadership and customer loyalty. MIPS Technologies was founded on
similar business principles and has long been renowned as a thought leader
dedicated to driving customer innovation in the embedded market. We remain
proud of Chipidea's milestones and technology 'firsts' over the last decade,
and are honored to take our business to a new level where we can truly drive
the progression of the burgeoning IP market."

"Chipidea remains committed to helping its customers achieve silicon
success by maintaining the integral position in their design process that
earned us our leading position in the market," said Franca. "MIPS
Technologies views technology partnerships in much the same way, and together
we will provide chip companies with the industry's most visionary approach
for microprocessor and analog IP integration so design teams can focus more
acutely on innovation."

Corporate Integration Plans

Following the transaction, MIPS intends to quickly integrate the two
companies and businesses. Chipidea will become a newly-formed business group
within MIPS Technologies, with its complete product portfolio continuing to
be sold under the Chipidea brand. Jose Franca will assume the role of
president and general manager for the new business group and has been
appointed a member of the board of directors for MIPS Technologies.
Currently, Chipidea has more than 310 employees worldwide, including design
centers in Portugal, France, Belgium, Poland, China, Norway, and Macau.

Historical Financial Overview and Earnings Guidance

Chipidea's revenue has grown with a CAGR of 38% between 2000 and 2006.
For the trailing four quarters, with the last quarter ending June 30,
according to IFRS accounting standards, the revenue recorded was US$32.8M.
The transaction is expected to be accretive to non-GAAP EPS by quarter end
June 30, 2008. The detailed historical IFRS accounting standards financials
will be reconciled to US GAAP financials and will be filed within 75 days of
the closing, as required by SEC regulations.

Editor's Note:

A conference call with MIPS Technologies' President and CEO John Bourgoin
and Chipidea CEO Jose Franca will be held at 1:00 p.m. in Lisbon and 
8:00 a.m. Eastern Time on Monday, August 27, 2007. The dial-in number is
+1-210-795-2680 (access code: mips) and a slide presentation will be made
available during the call at http://www.mips.com/company/investor_relations/.
The audio replay number is +1-203-369-0701 (access code: mips) and will be
available shortly following the call.

About MIPS Technologies

MIPS Technologies, Inc. (Nasdaq: MIPS) is a leading provider of
industry-standard processor architectures and cores for digital consumer,
networking, personal entertainment, communications and business applications.
The company drives the broadest architectural alliance that delivers 32- and
64-bit embedded RISC solutions to the embedded market, and in combination
with its licensees, offers the widest range of robust, scalable processors in
standard, custom, semi-custom and application-specific products worldwide.
MIPS Technologies currently owns more than 400 patent properties (patents and
applications) worldwide and licenses its intellectual property to today's
leading semiconductor companies, ASIC developers and system OEMs.

Today, MIPS-Based(TM) designs are integrated in millions of products
around the world, including broadband devices from Linksys, digital cameras
from Canon, DTVs and entertainment systems from Sony, DVD Recordable devices
from Pioneer, digital set-top boxes from Motorola, network routers from Cisco
and laser printers from Hewlett- Packard. Founded in 1998, MIPS Technologies
is based in Mountain View, California, with offices worldwide. For more
information, please contact +1-650-567-5000 or visit http://www.mips.com.

About Chipidea

Chipidea is the world's number one analog/mixed-signal merchant
technology supplier targeting fast-growing market segments including wireless
communications, digital media and consumer electronics. Chipidea supports
blue-chip customers across the globe, has an impeccable reputation for
delivering high-quality products and is known for its reliable execution.
Chipidea licenses its technology to leading companies in all major markets,
delivering everything from high-precision, single-function blocks to full
analog sub-systems. For more information: http://www.chipidea.com.

Forward Looking Statements

This press release contains forward-looking statements; such statements
are indicated by forward looking language such as "plans", "intends",
"anticipates", "expects", "will", and other words or phrases contemplating
future activities including statements regarding the future intentions and
expectations of the combined company. Actual events or results may differ
materially from those anticipated in these forward-looking statements as a
result of a number of different risks and uncertainties, including but not
limited to: risks relating to the integration of MIPS Technologies and
Chipidea and their respective technologies, products and employees, the fact
that there can be no assurance that the products of the combined company will
achieve market acceptance, changes in our research and development expenses,
the anticipated benefits of our partnering relationships may be more
difficult to achieve than expected, the timing of or delays in customer
orders, delays in the design process, the length of our sales cycle, our
ability to develop, introduce and market new products and product
enhancements, and the level of demand for semiconductors and end-user
products that incorporate semiconductors. For a further discussion of risk
factors affecting our business, we refer you to the risk factors section in
the documents we file from time to time with the Securities and Exchange
Commission.

MIPS-Based are trademarks or registered trademarks of MIPS Technologies,
Inc. in the United States and other countries. All other trademarks referred
to herein are the property of their respective owners.

Web site: http://www.mips.com