Dynatech Preparing To Assemble Processing Modules With Velocity Semiconductor’s Technology In Brazil

SÃO PAULO, BRAZIL – May 24, 2004 - Dynatech and Velocity Semiconductor executives met in São Paulo last March to finalize negotiations to license the production of processing modules with the U.S. company’s technology.

Based on the Velocity’s VS2000 32-bit microcontroller, the devices can operate at 44 MHz and include an ample variety of on-board peripherals such as a 10/100 Ethernet MAC. An internal TCP/IP stack allows easy Internet connection. An efficient architecture along with software development tools enable designers to write applications that consume less than half the memory of competing 8-bit solutions. The modules provide 52 digital I/O lines, 512K x 8 fast Flash memory (90 ns), 512K x 8 high-speed SRAM (15 ns), two RS-232 ports, two SPI interfaces and four timers. The VS2000 is the first 32-bit MCU designed to run real-time applications written in a mixture of C and Java languages.

The new product addresses applications that demand connectivity in telecom, control, instrumentation, bank and automation products, among other compelling applications.

According to Paolo R. Limena, Dynatech’s CEO, "The inclusion of these Velocity-based modules in the company portfolio clears the path for a new embedded technology products in our marketplace, with local production, support and technical assistance. This event is new among us and is tuned with Dynatech’s roadmap to become a technological reference and leader in the Brazilian electronics industry."

"Velocity is excited about our partnership with Dynatech," stated Chris Turner, CEO of Velocity Semiconductor. "Our VS2000 family of products is an ideal match for Dynatech connectivity solutions. The networked connectivity market is growing very rapidly in Brazil and Dynatech is positioned to be the leader in this market."

The new modules will be assembled at the Dynatech SMD plant in Ilheus, Bahia.

About Dynatech

Dynatech (www.dynatech.com.br) is a Brazilian company dedicated to the design of electronic products and the manufacture for the OEM market. With assembly lines in São Paulo and Ilheus, it offers to the market all the necessary services to transform ideas in products, from engineering to exploitation.

About Velocity

Velocity Semiconductor is a fabless semiconductor company founded in 2002 that develops and markets specialized microcontrollers and development tools. Velocity is the premiere supplier of 32-bit microcontrollers supporting mixed-language development utilizing industry-standard legacy C code and Java. The company is privately held with offices in Pleasanton, California and London, England.

© 2004 Velocity Semiconductor Inc. All rights reserved. Velocity, Velocity Semiconductor and the Velocity Semiconductor logo are trademarks of Velocity Semiconductor. Java is a trademark of Sun Microsystems, Inc.

More information regarding Velocity's products can be obtained by contacting Graftec Electronic Sales (www.graftec.com), their distributor in Brazil at +55-11-3875-6155 (São Paulo) or +55-11-3875-6155 (Florianopolis).

Velocity Semiconductor Inc. Velocity Semiconductor Inc.