MOUNTAIN VIEW, Calif., October 29, 2001 - Mysticom, Ltd., a leading provider of semiconductor intellectual property (SIP) to the data communications market, and UMC (NYSE:UMC), a world-leading semiconductor foundry, today announced an agreement to target the Mysticom® MystiPHY™110 10/100 Mpbs Ethernet physical layer (PHY) hard macro core for the first time to a foundry's 0.13-micron process. Through cooperative efforts, the core is being ported to UMC's 0.13 micron and 0.18 micron digital CMOS processes. As a result, semiconductor and system companies using foundry services have access to a robust, silicon-verified 10/100 Mbps Ethernet PHY core in multiple process technologies for the design and manufacture of highly integrated data communications systems-on-chips (SOCs).

"Success in the intellectual property market depends on a company's ability to deliver industry-leading technology and performance in a core that can be easily retargeted to multiple process technologies," said Dr. David Almagor, president and CEO, Mysticom, Ltd. "The addition of UMC as a new foundry partner allows access to our hard macro core in the most advanced process generation to date and gives customers access to their leading foundry services. UMC has achieved significant technological breakthroughs in process power and performance-including its true low-k dielectric process - and provides the right environment for our customers to design differentiated communications SOCs."

"As the first company to partner with us on a 10/100 Mbps Ethernet PHY, Mysticom has demonstrated unmatched robustness and reusability with the MystiPHY110 architecture that make its core an excellent choice for system on chip integration," said Edward Wan, vice president of worldwide engineering at UMC. "Mysticom joins other leading IP providers as a UMC partner, bringing our customers the critical system blocks they need to deliver true systems-on-chip products. The addition of its PHY hard macro core is a valuable addition to our comprehensive portfolio of IP resources."

The MystiPHY110 is a fully integrated IEEE 802.3/802.3u-compatible10/100Mbps Ethernet PHY core that is capable of working in both 10Base-T and 100Base-TX/FX Ethernet. It has been designed using patent-pending DSP and mixed-signal techniques and has been fully implemented and verified in silicon. The core has successfully passed University of New Hampshire (UNH) Interoperability Lab testing for standards conformance and interoperability. The MystiPHY110 offers high noise and cross-talk immunity, meeting the IEEE specification for near-end crosstalk (NEXT). It operates over 160 meters of cable, features low power dissipation and a small core size. In addition, the core can be used in multi-port designs to enable higher levels of system integration.

The MystiPHY110 can be licensed immediately from Mysticom. The 0.18 micron UMC design kit is available today, and the 0.13 micron UMC design kit is expected to be available by the end of Q4 2001. For more information on the MystiPHY110, contact Mysticom at (650) 210-8080, or visit the company Web site at www.mysticom.com.

Founded in 1997, Mysticom Ltd. is dedicated to providing DSP and mixed-signal VLSI cores for high-speed communications. The company's first product line implements the physical layer (PHY) for Local Area Networks (LANs) using Fast Ethernet and Gigabit Ethernet protocols and is used to speed the throughput of wired data communications products such as routers, switches, set-top boxes, xDSL and cable modems, and network interface controllers. Mysticom is also developing additional products for various high-speed networking markets. Industry-leading semiconductor and ASIC companies have licensed the cores, including IBM, Infineon, Philips Semiconductors, Texas Instruments and Virata Corporation. Mysticom is headquartered in Netanya, Israel, and has marketing and customer support offices in Mountain View, Calif. Additional information can be found at www.mysticom.com.

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.

Mysticom is a registered trademark, and MystiPHY is a trademark, of Mysticom, Ltd. All other trademarks or registered trademarks are the property of their respective holders.