AmberWave Charts a New Course for the Semiconductor Industry

AmberWave s Strained Silicon Platform, Supported by Seasoned Management, Engineering Talent and Strong Financial Backing, Opens Doors for Advanced Digital, Wireless and Photonic Applications

Salem, NH. AmberWave Systems Corporation, the global leader in advanced semiconductor intellectual property (IP), debuted today. AmberWave s high-mobility (epsilon)MOS™ strained silicon solution completely redefines the existing silicon roadmap, and ultimately the semiconductor industry, by offering the speed of gallium arsenide (GaAs) and indium phosphide (InP) materials but, incredibly, with silicon cost and infrastructure. AmberWave s strained silicon IP enables continued improvement per generation of its technology, providing a new roadmap for the semiconductor industry that speeds past the constraints of current silicon science and manufacturing.

AmberWave s breakthrough silicon innovation, supported by numerous patents, will enable IDMs and foundries to support advanced communications, electronics and photonics applications without any capital investment in infrastructure. Led by a seasoned team of management and engineering talent, including co-founder MIT Professor Gene Fitzgerald, the Father of High Mobility Strained Silicon, AmberWave s easy-access IP licensing model will lead the semiconductor industry down a new road to advanced silicon applications previously thought impossible.

Historically, as foundries, IDMs and fabless organizations become limited by the constraints of silicon technology, the industry is forced to build new fabs at the next generation process node (gate length).

According to Pathfinder Research, this endeavor cost in excess of $62 billion in 2000. With the slowing economy forcing cutbacks in capital investment, the semiconductor industry needs to extend the life of current manufacturing facilities without implementing new equipment or infrastructure changes. AmberWave s breakthrough high-mobility, (epsilon)MOS™, strained silicon overcomes this challenge by enabling a 1-2 generation leap in speed without any change to existing process lines. This solution will open doors for advancements within the digital, wireless and photonic industries that were previously thought impossible without huge monetary investments.

Many manufacturers need additional performance from their IC solutions to keep up with increasing consumer demands for advanced applications, higher speeds and innovative features in their everyday devices. Particularly in today s slowing economy, the semiconductor industry is literally begging for a new silicon roadmap that will allow for speed increases and power reductions without increasing the risk from large capital expense, said Mark Wolf, CEO and President of AmberWave Systems Corp.

AmberWave s (epsilon)MOS™ extends the life of a silicon fab by introducing new technology into the silicon substrates. We believe our breakthrough, high-mobility, (epsilon)MOS™ strained silicon solution will change the face of the semiconductor industry, and will ultimately introduce unprecedented performance into wireless, electronic and optical devices - creating new sources of revenue for manufacturers and providing consumers with cutting-edge technology that will make their lives easier.

Power, speed and cost have always been the chief concerns for the semiconductor industry, but they are even more critical today as the slowing economy has forced the industry to find new, cost-effective solutions for increasing speed and reducing power consumption, said Steve Cullen, principal semiconductor analyst at Cahners In-Stat. ``AmberWave has developed a new silicon roadmap, strengthened by significant patents in silicon IP, that enables companies to implement a new, innovative solution without investing additional capital.

AmberWave (epsilon)MOS™ AmberWave s (epsilon)MOS™ technology leverages many years of advanced materials development at the Massachusetts Institute of Technology as well as the process, device and circuit experience of AmberWave s brilliant technical team. With five issued patents and roughly 100 patent applications pending, AmberWave s (epsilon)MOS™ technology eliminates the surface quality and defect problems that plague other strained silicon technologies. A silicon layer is grown on top of a graded silicon germanium layer, which is itself grown on top of a normal silicon substrate. This thin, top layer of silicon will modify its lattice structure to conform to the top-most silicon germanium layer, becoming stretched--or strained--and increasing the mobility of electrons and holes in the material. (epsilon)MOS™ devices have already exhibited electron and hole mobility enhancement factors of between 1.5 and 2.2.

AmberWave Senior Management The AmberWave executive team is comprised of seasoned executives and proven engineering talent from leading technology companies. Their collective expertise has resulted in AmberWave s development of a new roadmap for the silicon industry. This market-making mindset positions AmberWave Systems as an innovative solutions provider for the next-generation of digital, electronic and optical devices. Senior level executives include: Mark Wolf, CEO and President

Most recently a Vice President at Tyco Electronics Systems, Mr. Wolf brings more than 10 years of high technology business management experience and has worked in the communications industry for more than 15 years. Gene Fitzgerald, Ph.D., Chairman & Founder

Dr. Fitzgerald, an MIT Professor of Materials Science and Engineering, has spent more than 15 years researching lattice mismatch at MIT, AT&T Bell Labs and Cornell. In 1991, he invented high mobility strained silicon at AT&T Bell Labs.

Mayank Bulsara, Ph.D., Founder & Chief Technology Officer Dr. Bulsara brings unique expertise in lattice-mismatched materials development, device fabrication with these materials and CVD experience to AmberWave. A former student of Dr. Fitzgerald s at MIT, he is the cornerstone of AmberWave s technology team.

Russ Bell, Vice President, Business Development Mr. Bell, a 22-year silicon technology veteran, was most recently Vice President, Technology Planning for GlobeSpan Semiconductor, a fabless xDSL chip manufacturer, and has also held various senior positions at Advanced Micro Devices.

About AmberWave Systems Corporation Based in Salem, NH, AmberWave Systems Corporation is a privately held, venture-financed company that is redefining the silicon roadmap. Launching from its strained silicon (epsilon)MOS™ platform, AmberWave propels its partners beyond the constraints of current silicon technology to leverage its innovative roadmap for both today and tomorrow. Led by a team of engineers and executives combining more than 60 man years of expertise developing silicon germanium (SiGe) technology with strategic business know-how, AmberWave is well-positioned to redefine the silicon roadmap and open the door for future generations of wireless, electronic and optical applications. With strong financial support from Adams Capital, Arch Venture Partners, TeleSoft Partners and The Hillman Company, AmberWave has received more than $45 million in funding. More information on the company and its technology can be found at www.amberwave.com.

Contact: FitzGerald Communications Orla Higgins Tel: 617-488-9500 ext. 277 amberwave@fitzgerald.com