Cypress Semiconductor Corp. Announces Finality Of Silicon Valley Technology Center Sale

SAN JOSE, Calif. - Cypress Semiconductor Corp. (“Cypress,” NYSE: CY) today announced the closing of the sale of its Silicon Valley Technology Center (SVTC) to Oak Hill Capital Partners and Tallwood Venture Capital. The definitive agreement was announced on January 30, 2007.

As previously announced, the sale is part of Cypress’s strategy to focus on programmable products and solutions. Cypress will remain an important SVTC customer.

About Silicon Valley Technology Center
SVTC - a first of-its-kind, proven development foundry - provides engineering services accelerating silicon-process development and commercialization of emerging semiconductor-based technologies in an IP-secure environment. Our expert engineers and state-of-the-art equipment deliver operational excellence with superior cycle times, cost-effective development and faster time to market for innovative memory, logic, MEMS and biotech customers.Unlike large manufacturing foundries, SVTC is optimized for flexibility and fast experimentation from concept to proof of concept. SVTC offers direct open access protocols that allow the customers’ engineering talent hands-on process development on 8-inch equipment that is as advanced as the International Technology Roadmap for Semiconductors’ (ITRS) 65nm roadmap. For more information, visit SVTC at www.svtc.com"

About Oak Hill Capital Partners
Oak Hill Capital Partners is a private equity firm with more than $4.6 billion of committed capital from leading entrepreneurs, endowments, foundations, corporations, pension funds and global financial institutions. Robert M. Bass is the lead investor. Over a period of nearly 20 years, the professionals at Oak Hill Capital Partners have invested in more than 50 significant private equity transactions. Oak Hill Capital Partners is one of several Oak Hill partnerships, each of which has a dedicated and independent management team. These Oak Hill partnerships comprise over $20 billion of investment capital across multiple asset classes, including private equity, special situations, high yield and bank debt, venture capital, real assets, public equity and hedge funds. For more information about Oak Hill, visit www.oakhillcapital.com.

About Tallwood Venture Capital
Tallwood Venture Capital, a Silicon Valley venture capital firm, invests exclusively in semiconductor and semiconductor-related technologies. The principals of Tallwood have deep, semiconductor experience that spans all aspects of the semiconductor industry value chain. By offering broad semiconductor knowledge, direct operating experience and a high degree of availability, Tallwood Venture Capital builds close, active working relationships with its portfolio companies. Its portfolio includes Marvell (Nasdaq:MRVL) and SiRF (Nasdaq:SIRF). For more information on Tallwood Venture Capital, visit www.tallwoodvc.com.

About Cypress
Cypress delivers high-performance, mixed-signal, programmable solutions that provide customers with rapid time-to-market and exceptional system value" Cypress offerings include the PSoC® Programmable System-on-Chip™, USB controllers, general-purpose programmable clocks and memories. Cypress also offers wired and wireless connectivity solutions ranging from its WirelessUSB™ radio system-on-chip, to West Bridge™ and EZ-USB® FX2LP controllers that enhance connectivity and performance in multimedia handsets. Cypress serves numerous markets including consumer, computation, data communications, automotive, industrial, and solar power. Cypress trades on the NYSE under the ticker symbol CY. Visit Cypress online at www.cypress.com.


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