SUNNYVALE, Calif. — October 16, 2000 - Virtual Silicon Technology, Inc., and United Microelectronic Corporation (UMC) (NYSE:UMC), today announced a complete set of eSilicon™ libraries for the all copper, low-k dielectric, 0.13 micron WorldlogicSM process jointly developed with IBM and Infineon. The eSilicon family of embedded semiconductor components includes foundry-specific standard cell libraries, multi-drive I/O pads, a broad selection of memory compilers including single-port RAM, dual-port RAM, ROM, and register files, and the continued expansion of Virtual Silicon's mixed-signal strategy with high-speed I/O pads, and Phase-Locked-Loop Compilers.

Most of these components are licensed at no cost to qualified end users. This comprehensive development program includes the fabrication of several test chips using UMC's exclusive Silicon Shuttle® prototyping service. The Silicon Shuttle is a multi-wafer test chip program that reduces customer mask cost for product prototyping. Customers using the Shuttle can be assured of the best ESD and latchup reliability, the most accurate timing model to silicon correlation, and the highest quality of new embedded components.

"Early access to a complete ASIC solution enables leading-edge customers to get their designs into production before their competitors," said Taylor Scanlon, chief executive officer at Virtual Silicon Technology. "This eSilicon product offering at 0.13 micron technology allows customers to hit the streets running as the industry's most advanced process technology becomes available."

"We are seeing tremendous customer interest in our 0.13 micron technology, which remains on schedule for pilot production qualification at the end of this year," said Jim Ballingall, vice president of marketing for UMC. "Our 0.13 micron technology rollout strategy requires the early availability of critical design components. Virtual Silicon has an excellent track record with UMC and has already developed quality library products for our 0.18 micron and 0.15 micron technologies. Our relationship with Virtual Silicon has helped our customers capitalize on our industry lead in the delivery of advanced process technology."

The UMC 0.13 micron e Si-Route/8™ high-density standard cell library and the eSi-Pads™ I/O pad set will be available in Q4 2000. Memory and PLL compilers will become available during Q1 of 2001. Systems-on-chip companies seeking information of the performance and density of UMC's 0.13-micron process should contact UMC.

Note From UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward looking within the meaning of the U.S. Federal Securities laws, including statements about future outsourcing, wafer capacity, technologies, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks.

Virtual Silicon Technology is a leading supplier of embedded semiconductor technology to manufacturers and designers of complex systems-on-chip. The company provides process-specific embedded components including standard cell libraries, I/Os, SRAM compilers, mixed-signal functions, PLL compilers and embedded flash/EEPROM solutions. Customers include leading semiconductor manufacturers and foundries, ASSP designers, and systems-on-chip developers who demand the highest quality, maximum performance, lowest power and optimum densities for their semiconductor innovations. For more information on Virtual Silicon Technology and its products, please direct customer inquiries to Mahesh Tirupattur at (408) 548-2726, email address: or go to www.virtual-silicon.com.

eSilicon, eSi-Route/8, eSi-Pad, eSi-RAM, eSi-ROM, eSi-PLL, The Heart of Great Silicon, Silicon Ready, IP Ambassador, Design Service Ambassador, and Virtual Silicon are trademarks of Virtual Silicon Technology, Inc. Gold IP and Silicon Shuttle are service marks of UMC.