Apache Continues Profitability and Achieves Thirteen Consecutive Quarters of Record Sales

Company establishes branch offices in India, Israel, and US East

Mountain View, Calif. – April 27, 2006– Apache Design Solutions, the technology leader in physical power integrity solutions for system-on-chip (SoC) designs, today announced its thirteenth consecutive record quarter and worldwide expansion of branch offices. Contributions to record sales came from new customer adoption of Apache’s power closure sign-off solutions, as well as the broadening of license usage within existing accounts. Q1 sales also included another multi-year, multi-million dollar agreement from a major semiconductor company, marking the fourth consecutive quarter with large multi-year commitments from customers.

“Traditionally, first quarter has been a slow quarter for EDA, but Apache has maintained continuous monotonic growth every quarter for the past 3 years,” stated Keith Mueller, senior vice president for business development. “For designs at 90nm and below, dynamic power is ‘a must have’ sign-off criteria and Apache leads this market by providing the most reliable power sign-off solution.”

“As more and more designs utilize low power techniques to manage power consumption and leakage, we are experiencing a rapid adoption of our leading power and noise solutions,” stated Andrew Yang, CEO of Apache. “By delivering accurate analysis and optimization solutions for low power designs, Apache is addressing the customer’s critical nanometer design issues such as leakage control and management.”

To support the growing adoption of Apache’s products, the company has established additional branch offices worldwide. To broaden the sales and support coverage in the United States, Apache opened a branch office in Massachusetts to augment the already established offices in Texas and California. To meet the demands of the fastest growing international markets, Apache expanded its branch office in Bangalore, India to include direct sales and engineering, as well as additional applications support personnel. Apache also opened a direct sales and support office in Israel.

Apache Design Solutions, NSPICE, RedHawk, PsiWinder, and Vectorless Dynamic are trademarks of Apache Design Solutions, Inc.