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London, March 4, 2002... IBM and Xilinx today announced a two-year,
multi-million dollar agreement under which IBM will manufacture Xilinx's
newly-announced Virtex-II-Pro semiconductor products. The revolutionary new
technology is welcomed by Xilinx customers including both Motorola and

The Virtex-II products are the result of a collaborative design effort
between the two companies, integrating IBM's PowerPC microprocessor with
Xilinx field programmable gate array (FPGA) technology to form a new type of
hybrid chip for use in communications, storage, and consumer applications.
Having collaborated with Xilinx to immerse the leading embedded processor
architecture, the IBM PowerPC, in the Virtex-II devices, IBM will now
manufacture the chips for Xilinx using its most advanced copper-based
chip-making technology. This is the first time that IBM has agreed to
manufacture high-volume parts for an outside customer using its most
advanced processes, normally reserved for its own microprocessors, custom
chips and high-speed memory products.

"This collaboration enables us to serve a five billion dollar market
opportunity and assures our customers a world-class source of supply," said
Alex Glass, Vice President Sales EMEA at Xilinx. "The decision to team with
IBM for the manufacture of this new product was a natural, from both a
technical and a business standpoint."

"We're expanding our work with customers like Xilinx, who recognise that
leading-edge technology, and the design expertise to exploit it, are
critical to building today's semiconductors products," said Ron Tessitore,
Vice President, IBM Microelectronics. "The synergy with Xilinx is
demonstrated in the successful delivery of this revolutionary semiconductor

With Xilinx's announcement of the resulting Virtex-II-Pro products, backed
by this manufacturing agreement with IBM, customers can now take advantage
of this unique platform.

What Customers say

"Having early access to the design tools for the Xilinx Virtex-II Pro FPGA
and the preliminary information, we've begun early design work for a client
project involving secure, high-speed video transmission," said Mr. Chris
Hallahan, vice president of Sales and Marketing at Nuvation Engineering.
"What we've seen in the Virtex-based product tools with the combination of
the PowerPC processors and high-speed serial transceivers will accelerate
time-to-market and reduce overall costs because of the functional
integration we're leveraging in this new FPGA."

"The Virtex-II Pro FPGAs, including both 3.125 Gbps serial transceivers and
LVDS I/Os, will play an important role in supporting high performance
networking systems," said Sam Fuller, director of engineering at Motorola.
"InfiniBand architecture will change the way servers are built and
deployed," said Jim Pappas, director of initiative marketing for Intel's
Enterprise Platform Group. "The flexibility of bridging FPGAs supporting
multiple I/O interconnects including InfiniBand technology allows the
industry more flexibility in their enterprise designs."

About Xilinx

Xilinx is the leading supplier of complete programmable logic solutions,
including advanced integrated circuits, software design tools, predefined
system functions delivered as intellectual property cores, and unparalleled
field engineering support. Founded in 1984 and headquartered in San Jose,
Calif., Xilinx invented the field programmable gate array (FPGA) and
fulfills more than half of the world demand for these devices today. Xilinx
solutions enable customers to reduce significantly the time required to
develop products for the computer, peripheral, telecommunications,
networking, industrial control, instrumentation, aerospace, defence, low
power portable and consumer markets.

For more information, visit the Xilinx
web site at

For press enquiries please contact:

Linsey White
Eclat Marketing Ltd
Tel: +44 118 989 5600
Fax:+44 118 989 5656
Mobile: 079391 26553


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