New Venture Partners leads $10 million investment round, joined by TVM Capital and Philips

Eindhoven, The Netherlands - Royal Philips Electronics announced that Silicon Hive, a venture within Philips Technology Incubator, has been spun out as an independent company as of April 16, 2007. New Venture Partners, TVM Capital and Philips have together invested $10 million in the new company. Philips retains a minority stake. Silicon Hive provides highly innovative programmable processor IP cores for the semiconductor and consumer electronics industry.

The investment enables Silicon Hive B.V. to implement its ambitious growth plans by scaling its commercial operations worldwide, and allowing further investments into new product development. As an independent semiconductor IP supplier, Silicon Hive has the freedom to license to the entire electronics industry. The new company will have offices in Eindhoven (The Netherlands), Silicon Valley (United States), Seoul (Korea) and Bangalore (India).

Silicon Hive enables semiconductor companies to make fully-programmable System-on-Chips (SoCs) for demanding applications, such as mobile TV, mobile WiMax, high quality imaging, and high definition video signal processing. High- volume electronics manufacturers can use a unified hardware platform for their products, whereby specific functionality and/or regional requirements can be programmed in software. This leads to lower cost, flexibility in product design and manufacturing and a faster-time-to market.

“Our silicon-proven cores are now starting to penetrate tier one semiconductor companies supplying major mobile phone and consumer electronics companies,” says Atul Sinha, CEO of Silicon Hive B.V. “By leveraging award-winning Philips technology and solid investment from New Venture Partners and TVM Capital, Silicon Hive can now accelerate its growth plans and exploit this huge business opportunity.”

“We are thrilled to be investing in Silicon Hive, which leads the technology for delivering next-generation programmable platforms to the semiconductor industry and we look forward to helping them grow," said Anton Arts, a partner at New Venture Partners. „Silicon Hive's unique application-specific processor IP, targets semiconductors sold into very large consumer markets,“ said Chris Cobbold, a partner at TVM Capital. Mr. Arts and Mr. Cobbold have joined the Supervisory Board of Silicon Hive B.V.

Silicon Hive was formed four years ago to commercialize Philips Research’s world-leading technology in programmable solutions for consumer and mobile devices. Since then, the company has launched a product portfolio consisting of tuned processor cores for communications and media processing applications as well as a sophisticated hardware and software design flow to enhance designer productivity. Silicon Hive products have gained acclaim from leading edge semiconductor designers and analysts alike as the sole programmable solution that matches manually optimized hard-wired design methods in performance, power consumption and cost. Lead customers have applied Silicon Hive products in SoCs for mobile phones, printers for the consumer market, and mobile WiMax terminals.

New Venture Partners is the leading global venture capital firm specializing in corporate technology spin-outs. This transaction is the result of an on-going collaboration with Philips to support research-based technology businesses, which led to the creation of Liquavista in 2006. TVM Capital is a leading technology investment group with offices in Germany and the U.S. Both firms have a long track record in the semiconductor industry and a history of building companies that enjoy the benefits of access to research, talent and capital from both sides of the Atlantic.

Silicon Hive is the second consecutive spin-out from Philips Technology Incubator group, formed four years ago to transform innovative Philips’ technologies into new business opportunities. In January of this year Polymer Vision Ltd., focusing on products for the rollable display market, became an independent company with venture capital investment. Last year Philips Laser Sensors spun up into Philips Lighting Division to supply its Twin-eye Laser sensors to the PC peripheral and mobile industry. For Further Information Please Contact: Mr. Tony Picard Silicon Hive B.V. High Tech Campus 83 5656AG Eindhoven The Netherlands Email: Tel: + 31 40 800 2020 About Silicon Hive B.V. Silicon Hive is a worldwide supplier of semiconductor intellectual property. The company designs, builds and licenses application-specific solutions for communications, imaging, and video processing using its tuned programmable HiveFlex processor cores. IP cores are supported by HiveCC program development tools, and partner supplied application libraries. Silicon Hive products enable semiconductor and consumer electronics companies to make fully programmable System-on-Chips (SoCs) improving time to market performance. The patented technology originates from 10 years of research within Philips Research and more recent improvements, additions, and commercialization by Silicon Hive. Silicon Hive B.V. is a venture funded company with investments from New Venture Partners LLC, TVM Capital GmbH, and Philips.wwww.siliconhive.com