FOR IMMEDIATE RELEASE

 
XILINX TAKES LEAD IN CPLD MARKET 
Acquisition of key software technologies to further accelerate CPLD market penetration

SAN JOSE, Calif., December 14, 1998 – Responding to the increased usage of synthesis by designers of complex programmable logic devices (CPLDs), Xilinx, Inc., (NASDAQ:XLNX) today announced that it is negotiating to acquire PLSynthesizer, a powerful synthesis tool, and the popular ABEL high level description language, both for CPLDs. In a related matter, Xilinx also announced that three members of its new 3.3-volt XC9500XL family of high performance, low cost CPLDs are beginning to ship in volume.  Xilinx is the first supplier to go into production with 3.3 volt, 0.35 micron Flash CPLDs.

PLSynthesizer is a VHDL and Verilog synthesis tool that permits the creation of fast CPLD designs that make the most efficient use of on-chip resources, allowing the design to be implemented in the smallest, least expensive CPLD device.

ABEL is the industry's most widely used CPLD language, with an installed based of more than 50,000 seats worldwide. Xilinx previously licensed ABEL and currently bundles it with its Foundation Series software. 

“PLSynthesizer is a superior synthesis tool that is tuned specifically for CPLDs,”  said Evert Wolsheimer, vice president and general manager of the Xilinx CPLD business unit. “Owning ABEL and PLSynthesizer will enable Xilinx to make it very easy for designers to transition to VHDL and Verilog with a single software design environment. We expect to deliver a smooth transition from ABEL-PLSynthesizer to a Xilinx Foundation Series-based synthesis tool in the first half of 1999.”

Regarding the future of ABEL, Xilinx intends to continue to support the tool and make it easy for users to upgrade to new versions as they become available. 

“We will leverage the tens of thousands of installed ABEL seats to further expand our share of the CPLD market,” Wolsheimer said.  

The XC9500XL CPLDs are the industry's first 0.35 micron FLASH products to begin shipping in high volume.  New in-system programmable devices now in production are the XC9536XL, XC9572XL, and XC95144XL, with 36, 72 and 144 macrocells, respectively. The XC95288XL, with 288 macrocells, will follow next month.

“In just two years Xilinx has gone from zero to approximately 10 percent market share for in-system programmable CPLDs.  We accomplished this with our first generation 5-volt XC9500 family,” Wolsheimer said. “We fully expect that our second generation 3.3-volt. 0.35 micron XC9500XL devices will be accepted just as well by the market and will help us capture even more share as designers quickly migrate to lower voltage devices.”

According to market researcher In-Stat of Scottsdale, Ariz., Xilinx CPLD revenue grew nearly 40 percent between July 1997 and June 1998 while the total CPLD market declined 4.6 percent during the same period.  Xilinx said that during the last 12 months, XC9500 CPLD unit shipments grew by 127 percent while CPLD revenues grew 83 percent, indicating a strong acceptance of the XC9500 family in the market.

This release contains forward-looking statements based on current expectations or beliefs as well as a number of assumptions about future events, and that are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.  The reader is cautioned not to put undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to a number of uncertainties and other factors, many of which are outside the control of Xilinx.  The forward-looking statements in this release address a variety of subjects, including, for example, the expected acquisition of the CPLD design and synthesis tools and the benefit of such software to Xilinx’s business and customers.  The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risks that Xilinx will not reach agreement with the owner of the CPLD design and synthesis tools regarding the potential acquisition, and that the acquisition will not be consummated; the risk that the necessary approvals for such acquisition may not be obtained; the risk that the tools, if acquired, will not be successfully integrated with Xilinx’s business; and increased competition and technological changes in the industry in which Xilinx competes.  For a detailed discussion of these an other cautionary statements, please refer to Xilinx’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended March 28, 1998, and its Quarterly Report on Form 10-Q for the quarter ended October 3, 1998.  

Xilinx is the leading innovator of complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as cores, and unparalleled field engineering support.  Founded in 1984 and headquartered in San Jose, Calif., Xilinx invented the field programmable gate array (FPGA) and commands more than half of the world market for these devices today.  Xilinx solutions enable customers to reduce significantly the time required to develop products for the computer, peripheral, telecommunications, networking, industrial control, instrumentation, high-reliability/military, and consumer markets. For more information, visit the Xilinx web site at www.xilinx.com.

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Xilinx is a registered trademark of Xilinx, Inc.  All XC-prefix product designations and Foundation Series are trademarks of Xilinx. ABEL is a trademark of Data I/O Corp.  Other brands or product names are trademarks or registered trademarks of their respective owners.

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Editorial contact:
Mike Seither Kathy Keenan
Xilinx, Inc. Oak Ridge Public Relations
(408) 879-6557 (408) 253-5042
mike.seither@xilinx.com kathy@oakridge.com