1. Accelerating the Chip Design Process 1 Closing the Money Gap EDAC Panel Session September 17, 2002 Dan Ganousis President and CEO

2. Accelerating the Chip Design Process 2 Challenges in New Product Adoption  Current Business Climate  Everyone is grumpy because of the economy  Most budgets are limited to “must have” purchases  Accessibility  No prospect ever has time for you  Most prospects are geographically dispersed  Most companies have strict travel restrictions  Credibility  No designer believes anything an EDA vendor says  Designers want to see your new tool work in THEIR design environment  Marketing  Intrusive Internet-based campaigns can be counter productive  Increasing design complexity makes it hard to find the right prospects

3. Accelerating the Chip Design Process 3 Affect on an EDA Startup  Funding is incredibly difficult  Controlling the cost of sales is paramount  Marketing expenditures have to be extremely focused  Talent is available, but you don’t have the money to hire them  Need access to a plethora of design flows  It’s no longer acceptable just to be a member of a partner’s alliance program  Screenshots and demos won’t convince anyone – you need to run the real application with the customer’s design data  You need to be everywhere  The majority of prospects will need buy-in from designers who are in multiple locations  The majority of revenue is no longer in the US; now an international presence is critical, not a luxury

4. Accelerating the Chip Design Process 4 AccelChip’s Solution Product Development Design Engineers Regional Sales Teams Concept Solution Prospects Requirements

5. Accelerating the Chip Design Process 5 Benefits Realized  We’re reaching the right teams with the right message  Their design data in their design flow with our tool  Unlimited accessibility – time zones are the only limitation  Marketing with design engineers, not MBAs  Significantly reduced costs  Travel expenses are limited to local sales team’s costs  Maintenance and support of design flows is centralized  Training of regional sales teams and distributors early and often  Improved Pre- and Post-Sales Support  Prospects and customers have access to our design engineers as well as our local Application Engineers and our hot-line  Multi-vendor design flows are easily accessible  Training as they want it when they want it  Problem resolution more efficient with designer to developer communication – we eliminate the middle man