EL SEGUNDO, Calif. - July 26, 2004 - To meet growing demand in the wireless radio frequency integrated circuit (RFIC) market for a capable, cost-effective RFIC design platform, Applied Wave Research, Inc. (AWR™), a leading provider of high-frequency electronic design automation (EDA) tools, today announced a corporate agreement with Taiwan Semiconductor Manufacturing Company Ltd. (TSMC) (NYSE:TSM) to jointly develop and deliver a design platform for TSMC's 0.35-micron silicon germanium (SiGe) process. The platform will include AWR's Analog Office™ RFIC design software, a TSMC 0.35-micron SiGe process design kit (PDK) based on open software standards, and an end-user full product support package.

Under the agreement, TSMC and AWR will develop a new set of process-calibrated and process-tuned device models for the TSMC 0.35-micron SiGe process. The model set will include the most advanced and accurate HICUM bipolar transistor models as well as a comprehensive set of accurately tuned spiral inductor models. XMOD Technologies, http://www.xmodtech.com, a company specializing in RF device modeling, will provide the geometry scalable HICUM model libraries. The new models will enable analog and RFIC designers to develop next-generation, high-performance wireless ICs quickly and easily, leveraging the full capability of the advanced SiGe process, and with full confidence that the circuits will perform as designed in silicon. The newly developed models will be packaged as part of a complete PDK based on the AWR unified data model and other open software platforms.

"AWR welcomes the opportunity to work with the world's most successful dedicated independent semiconductor foundry," said James Spoto, AWR president and CEO. "The combination of AWR's RF design software expertise and TSMC's semiconductor manufacturing leadership will result in a top quality, validated SiGe PDK that will greatly benefit not only the customers of both companies, but the high-frequency design community as a whole."

"A cost-effective RFIC design platform will be a welcome addition to the growing RF wireless design community worldwide, and particularly to emerging design markets," said Edward Wan, senior director of design services marketing for TSMC. "Our collaboration with AWR will provide advanced RF models and PDKs that differentiate TSMC RF process offerings, and will also allow us to more fully meet the library/PDK customization needs of customers."

About Analog Office
The Analog Office solution is the first complete IC design system in over a decade that is specifically architected and optimized from the ground up for analog and RFIC designs. The 2004 version has been enhanced to provide the industry's most open, unified design environment, offering full interaction with a comprehensive and powerful set of integrated tools. The toolset spans the entire IC design flow, from system-level to circuit-level design and verification, for complete top-to-bottom and front-to-back analog and RFIC design.

About Applied Wave Research, Inc.
Applied Wave Research is a leading supplier of high-frequency electronic design automation (EDA) products for the design of wireless telecommunications equipment, semiconductors, high-speed computers, networking systems, and a variety of other electronics-based products. AWR is a privately held company and has development offices, sales offices, training centers, and global distribution. AWR launched its first product in 1998 and today has over 400 customer companies worldwide, including virtually every major high-frequency electronic component and system supplier. The company is located at 1960 East Grand Avenue, Suite 430, El Segundo, California 90245. For more information about AWR and its products, please visit www.mwoffice.com or call 310-726-3000.

About TSMC
TSMC is the world's largest dedicated semiconductor foundry, providing the industry's leading process technology and the foundry industry's largest portfolio of process-proven library, IP, design tools and reference flows. The company operates one advanced 300mm wafer fab, six eight-inch fabs and one six-inch wafer fab. TSMC also has substantial capacity commitments at two joint ventures fabs (Vanguard and SSMC) and at its wholly-owned subsidiary, WaferTech. In early 2001, TSMC became the first IC manufacturer to announce a 90-nanometer technology alignment program with its customers. TSMC's corporate headquarters are in Hsin-Chu, Taiwan. For more information about TSMC, go to http://www.tsmc.com

AWR and the AWR logo are registered trademarks and Analog Office is a trademark of Applied Wave Research, Inc. All other registered marks are the property of their respective holders.

For more information, please contact:

Ann Shubnell, Marketing Communications
Applied Wave Research, Inc.
1960 East Grand Avenue, Ste. 430, El Segundo, CA 90245
Tel 310-726-3000 - Fax 310-726-3005
Email Contact

Heidi Vantulden - For Applied Wave Research, Inc.
Bluestone PR, Inc.
Tel 503-524-9799
Email Contact