26th September 2001

Imagination Technologies Acquires Cross Products

New Strategic Addition to Provide Advanced Development Tools for Imagination's Multi-threaded META™ DSP Processor Core

Imagination Technologies Group plc has agreed to acquire the entire share capital of Cross Products Limited, a company specialising in designing and producing high-quality development tools for real-time embedded microprocessors and DSPs under the well-known CodeScape brand. CodeScape is best known as the leading worldwide provider of advanced tools for the Hitachi’s successful SuperH family of microprocessors and DSPs.

For microprocessor and DSP cores, advanced development tool support is critical in providing customers with a highly efficient development and programming process. The purchase achieves Imagination Technologies’ objective of ensuring its revolutionary multi-threaded META DSP Processor is supported by world-class tools. It is expected that a full suite of CodeScape tools will be available for the META core by the first half of 2002. Cross Products will become part of Imagination Technologies’ Metagence Technologies division and will continue to operate from its existing location in Leeds, England.

Cross Products’ CodeScape technology has been widely adopted by leading companies worldwide for many applications across the consumer, commercial, industrial, automotive, and other sectors. It consists of a set of multicore, real-time tools for high-performance embedded microprocessors and DSPs which includes source-level debuggers, advanced code profilers, fully cycle-accurate processor simulators, real-time bus monitors, and an integrated development environment.

The business is being acquired from Sega™ Corporation for a total consideration of £4.2 million, comprising £2.0 million in cash and £2.2 million in shares. The consideration is due on completion, which is expected by the end of September. For the year ending 31st March 2001, Cross Products generated £0.2m profit before tax on revenue of £1.6m and had net assets of £2.2m. Cash balances in Cross Products are currently around £1.8m.

Hossein Yassaie, CEO of Imagination Technologies says: “”;Cross Products will provide us with outstanding expertise and state-of-the-art technologies and products in the key areas of development tools and debuggers. This purchase is a logical and important step in the development of our META architecture and our ability to deliver effective, off-the-shelf intellectual property, fully supported with advanced development tools, to our customers. It will also continue its full support for the SuperH microprocessor architecture developed by Hitachi and STMicroelectronics.””;

The CodeScape product line up has today been further expanded to provide development support for Microsoft Windows CE as well as additional Hitachi processors.

Says Ian Oliver, VP of Development, CodeScape: “”;CodeScape is the dominant development system for SuperH and our joining with Imagination Technologies will enable its evolution so that CodeScape continues to be at the forefront of embedded development. CodeScape will now provide a comprehensive development environment for Imagination Technologies’ ground-breaking META architecture as well as continuing to support SuperH.””;

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