October 4, 2005 – Synopsys Inc. has signed a definitive agreement to acquire HPL Technologies Inc., a provider of yield management software and test chip solutions. Under the terms of the agreement, Synopsys will acquire HPL for approximately $13 million, or $0.30 per share. The all-cash transaction, which will require HPL shareholder approval, is expected to close during Synopsys’ 1QFY06 and is subject to customary closing conditions.

Through this aquisition, Synopsys, a maker of semiconductor design software, will deepen its connection to the fab and obtain direct access to the yield data needed to reduce systematic defectivity. The company will also broaden its DFM research and development expertise by integrating HPL’s team of experienced engineers.

“Today, the typical design-to-manufacturing cycle takes 18 to 20 months. By linking directly into the fab, Synopsys can help significantly reduce the time between concept and manufacturing, and accelerate the introduction of new designs,” said Anantha Sethuraman, VP of DFM for Synopsys’ Silicon Engineering Group.