Analyst Contact:
`Manny Hernandez
`CFO, VP-Finance & Admin.
`(408) 943-2754
`
`Press contact:
`Joseph L. McCarthy
`Director, CorpCom
`(408) 943-2902
`
`CYPRESS SEMICONDUCTOR
`
`ACQUIRES ANCHOR CHIPS INC.
`
`Company Specializes
`
`in High-Speed Microcontrollers
`
`for Universal Serial Bus Standard
`
`SAN JOSE, California...May
`
`25, 1999 -- Cypress Semiconductor Corporation (NYSE:CY)
`
`today
`
`announced the acquisition of Anchor Chips Inc. (www.anchorchips.com),
`
`a privately held company
`
`based in San Diego, California.
`
`/,_-.
`
`Anchor Chips designs and markets peripheral microcontroller
`
`chips for Universal Serial Bus, the
`
`industry-standard
`
`connection that provides plug-and-play interconnect capabilities
`
`for PCs and Macs and
`
`their peripherals.
`
`Under the terms of the ageement, Cypress acquired Anchor Chips in a cash transaction
`
`totaling
`
`under $15 million. The acquisition, which was effective May 21,1999,
`
`is expected
`
`to be accretive to
`
`Cypress's
`
`1999 earnings,
`
`excluding in-process R&D write-offs
`
`and transaction-related
`
`costs, which will
`
`be recorded in the second quarter.
`
`Anchor Chips specializes
`
`in USB devices
`
`aimed at high-speed
`
`applications,
`
`including
`
`printers,
`
`scanners, xDSL modems, and digital cameras. The company's product portfolio
`
`is expected to
`
`complement
`
`and extend Cypress's complete
`
`line of silicon and tools for low-speed
`
`devices
`
`(mice,
`
`trackballs,
`
`joysticks,
`
`and keyboards)
`
`and hubs.
`
`"This acquisition clearly positions Cypress as the leading supplier of peripheral controllers
`
`in the
`
`USB market,"
`
`said J. Daniel McCranie, Cypress's
`
`executive vice president,
`
`sales and marketing.
`
`"Anchor
`
`Chips' high-speed USB devices are extraordinarily
`
`flexible and feature-rich,
`
`and Anchor Chips itself
`
`is
`
`an exciting company with excellent products
`
`and extremely
`
`talented people."
`
`-MORE-
`
`Exhibit 2057 - Page 01 of 04
`
`

`

`Cypress Acquires Anchor Chips - Page 2
`
`"Cypress
`
`and Anchor Chips represent
`
`two strong performers
`
`in the USB marketplace,"
`
`said Ron
`
`Sartore, Anchor Chips'
`
`founder, president,
`
`and CEO. "Our product
`
`lines are highly complementary,
`
`and
`
`the combination
`
`of our two companies
`
`creates
`
`the most attractive, broadest USB product
`
`line in the
`
`industry."
`
`With an estimated five USB connections
`
`per PC, times approximately
`
`100 million PCs shipped
`
`per year, the PC peripheral
`
`segment of the USB market
`
`is growing rapidly. The technology also has
`
`penetrated
`
`applications
`
`such as wireless phones, and may eventually extend to the transmission
`
`of full-
`
`motion video.
`
`Cypress
`
`is the market-share
`
`leader
`
`in USB, recently shipping its 10 millionth USB chip. Cypress
`
`achieved this milestone
`
`in only two years, having shipped its first microcontroller
`
`in Q1 1997. According
`
`to market-research
`
`firm Cahners
`
`In-Stat
`
`(Scottsdale, Ariz.), Cypress has shipped over 50% of all USB
`
`peripheral
`
`control devices, giving it the leadership position in this fast-growing market. Cypress's
`
`first
`
`/ ....
`
`USB chip was designed under contract with Microsoft
`
`for that company's USB "Intellimouse_,
`
`'' and
`
`since then Cypress has established
`
`relationships with a wide range of PC peripheral manufacturers.
`
`Anchor Chips' USB families cover a wide range of packages, memory sizes, memory types, I/O
`
`configurations,
`
`and prices. All of these parts are software-compatible
`
`and they are pin-compatible within
`
`a package type. Anchor's
`
`"soft-hardware"
`
`products offer the performance
`
`of hardware
`
`and the flexibility
`
`of software. Anchor has implemented
`
`an innovative SRAM-based
`
`architecture
`
`in conjunction with a
`
`high-performance
`
`version of the industry-standard
`
`8051 microcontroller.
`
`The end benefit of this
`
`architecture
`
`for Anchor's
`
`customers
`
`is that they can implement multiple designs based upon one
`
`hardware platform, make last minute corrections
`
`in their manufacturing
`
`lines, and provide their end
`
`customers with software upgrades via the Intemet. The net result
`
`for these customers
`
`is fewer hardware
`
`iterations
`
`in their development
`
`cycles,
`
`faster time to market, reduced risks, and lower cost.
`
`Anchor Chips also manufactures EZ-Link Instant Network.
`
`EZ-Link allows end users to network
`
`two or more computers
`
`together via their USB ports. This 100% Windows
`
`networking-compatible
`
`solution lets users share printers,
`
`files, and drives, as well as enjoy multiplayer
`
`games. EZ-Link won the
`
`prestigious
`
`"Best of Comdex Award for New Technology."
`
`-MORE-
`
`Exhibit 2057 - Page 02 of 04
`
`

`

`Cypress Acquires Anchor Chips - Page 3
`
`In addition to USB products, Anchor Chips offers a new PCI bus interface
`
`architecture
`
`that
`
`replaces the historic DMA/FIFO architecture with a shared memory architecture. This architecture
`
`completely removes the historic latency associated with moving data from the interface's FIFO to the
`
`memory space of the local processor.
`
`Anchor Chips Incorporated
`
`is a semiconductor
`
`company that creates, designs,
`
`and markets
`
`innovative
`
`integrated circuits and bus-related products
`
`that simplify interfacing
`
`to emerging
`
`bus
`
`standards. Anchor's products virtually eliminate the complexities
`
`of modern bus interface design for the
`
`system designer. The company's first products -- CO-MEM Lite TM and -- EZ-USB TM -- are based upon the
`
`Peripheral Component
`
`Interconnect
`
`(PCI) bus and the Universal Serial Bus (USB).
`
`Cypress Semiconductor
`
`Corporation, with international
`
`headquarters
`
`in San Jose, California,
`
`provides a broad range of products
`
`for leading computer, networking,
`
`and telecommunications
`
`companies
`
`worldwide. Cypress's
`
`product
`
`line includes
`
`static RAM and specialty memories;
`
`programmable
`
`logic
`
`J........
`
`devices (PLDs); data communications products;
`
`timing devices, and Universal Serial Bus (USB)
`
`microcontrollers.
`
`Its shares are listed on the New York Stock Exchange under
`
`the symbol CY. The
`
`company's worldwide web site is http://www.cypress.com.
`
`"Safe Harbor" Statement under
`
`the Private Securities Litigation Reform Act of 1995: Statements
`
`herein that are not historical
`
`facts are "forward-looking
`
`statements"
`
`involving risks and uncertainties.
`
`In
`
`addition,
`
`this news release contains forward-looking statements regarding the impact of the acquisition
`
`on Cypress's
`
`future operating results and earnings,
`
`future market demand and acceptance
`
`of Cypress's
`
`and Anchor Chips' products, development
`
`of new business and products of the combined company and
`
`market growth rates for Cypress and Anchor Chips products. Each of these forward-looking
`
`statements
`
`involve risks and uncertainties. Cypress's
`
`actual
`
`results may vary materially from the results discussed
`
`in
`
`the forward-looking
`
`statements. Factors
`
`that may cause such a difference
`
`include risks in timely
`
`development
`
`and production of the combined cmpanies'
`
`products;
`
`continued
`
`and increased market
`
`acceptance
`
`of the combined companies'
`
`products; Cypress's
`
`ability to successfully
`
`combine
`
`the
`
`operations of the two companies;
`
`the ability of the combined company to compete
`
`in the highly
`
`competitive
`
`and rapidly changing marketplace
`
`and the other risks detailed from time to time in Cypress'
`
`s
`
`periodic reports with the Securities and Exchange Commission,
`
`including but not limited to its report on
`
`Exhibit 2057 - Page 03 of 04
`
`

`

`Form 10-K for the fiscal year ended January 3, 1999 and on Form 10-Q for the first quarter of 1999
`
`ended April 4, 1999.
`
`###
`
`Exhibit 2057 - Page 04 of 04
`
`