1. Equity Market Environment Technology IPO Offerings: September 1, 2000 - September 21, 2001 (1) IPO activity is drastically down across all sectors of technology with not a single deal pricing in three of the first nine months of 2001 September 2001 was the first month since December 1975 in which not a single IPO priced in the US equity markets Many private companies that originally aspired to enter public markets will be forced to consider alternatives to an IPO Note: 1.Includes U.S. issuers over $40MM Amount Offered for IPO Offerings $MM L:\HiTech\COMPANY\SEMICOND\CADENCE\2001\Strategic dialogue10-2-01FINAL.ppt\A2\02 OCT 2001\7:10 AM\11 SourceEquidesk and FactSet # of Deals 31115022 032 31 0

2. Overview of Technology Equity Market Backlog By Sector L:\HiTech\COMPANY\SEMICOND\CADENCE\2001\Strategic dialogue10-2-01FINAL.ppt\A2\02 OCT 2001\7:10 AM\12 With technology equity market backlog increasing, particularly for semiconductor and software companies, larger players in those spaces should look for strategic opportunities resulting from a lack of liquidity in the public markets

3. Comparable Companies Trading Multiples MORGAN STANLEY DEAN WITTER Presentation3\A2\09 APR 2001\1:28 PM\2

4. Comparable Companies Operating Statistics MORGAN STANLEY DEAN WITTER Presentation3\A2\09 APR 2001\1:28 PM\3