OTTAWA, June 3 /PRNewswire-FirstCall/ - Tundra Semiconductor Corporation (Tundra), , a leader in System Interconnect, has terminated its product acquisition agreement, announced in August, 2007, with IBM Global Engineering Solutions (IBM), effective June 1, 2008. The acquired product was to be based on an IBM Power Architecture(TM) 90 nm processor core. IBM recently notified Tundra that the performance of the core is lower than previously stated. Since the IBM core cannot meet the stated performance, the product is now unsuitable for Tundra's intended target applications and market. In November, 2007, Tundra also signed a license agreement with IBM to bring new 65nm Power Architecture solutions to market as part of Tundra's smart System Interconnect (sSI) strategy and roadmap. As a result of the decision to terminate the product acquisition agreement, and based on Tundra's review of the current IBM performance data for the 65nm core, Tundra has also made the decision to terminate that license agreement.

Tundra intends to actively pursue alternative means of executing against its sSI strategy to bring intelligent System Interconnect solutions to broader global markets.

About Tundra

Tundra Semiconductor Corporation supplies the world's leading communications, computing and storage companies with System Interconnect products, intellectual property (IP) and design services backed by world-class customer service and technical support. Tundra's track record of product leadership includes over a decade of bridges and switches enabling key industry standards: RapidIO(R), PCI, PCI-X, PCI Express(R), Power Architecture(TM), VME, HyperTransport(TM), Interlaken, and SPI4.2. Tundra's products deliver high functional quality and simplified board design and layout, with specific focus on system level signal integrity. Tundra's design services division, Silicon Logic Engineering, Inc., offers industry-leading ASIC and FPGA design services, semiconductor intellectual property and product development consulting. Tundra's technology connects critical components in high performance embedded systems around the world. For more information, please visit www.tundra.com.

Forward Looking Information

Tundra cautions that forward-looking information in this release is based on certain assumptions and expectations made by Tundra that may prove to be inaccurate. Assumptions made include Tundra's ability to identify and implement alternative means to develop future products in a timely manner to address sSI market opportunities, customer demand for Tundra's products and services, and Tundra's ability to maintain and enhance existing customer relationships. Furthermore, Tundra cautions that forward-looking statements in this release are based on current assumptions and expectations that are subject to risks and uncertainties. Actual results may differ due to factors such as customer demand for any new products, market risks and trading prices, customer relationships, new services offerings, product shipping schedules, competitive products and services, pricing pressure, and changes in the target markets. The Company assumes no obligation to update or revise any forward-looking statements. Additional information identifying risks and uncertainties is contained in the Company's filings with the various provincial securities commissions which are available online at www.sedar.com.

TUNDRA and the Tundra logo are registered marks of Tundra Semiconductor Corporation in Canada, the United States, the European Union and the People's Republic of China. Design.Connect.Go. is a trademark of Tundra Semiconductor Corporation. The Power Architecture and Power.org word marks and the Power and Power.org logos and related marks are trademarks and service marks licensed by Power.org. Other registered and unregistered trademarks are the property of their respective owners.

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reserved. Information subject to change without notice.