Apache Closes 2005 with Sustained Growth and Profitability

Company Adds Seven New Customers in Q4

Mountain View, Calif. – January 16, 2006– Apache Design Solutions, the technology leader in physical power integrity solutions for system-on-chip (SoC) designs, today announced its twelfth consecutive record quarter and a tripling of the company’s 2005 bookings compared to the previous year. The fourth quarter marked another significant milestone for Apache as seven new customers in a single quarter adopted its power integrity solutions worldwide, including Apache’s first customer in China. New Q4 business also included a multi-year, multi-million dollar initial purchase. Apache maintained its track record of a 100% renewal rate with nine customers renewing in Q4, including a multi-year expansion order from a leading semiconductor company. Apache also achieved its first full quarter of profitability in Q4, based on ratable revenue recognition of time-based licenses.

“2005 was a pivotal year for Apache,” said Andrew Yang, CEO of Apache. “By achieving profitability, we have proven our long-term stability as a company. The strength of our business will enable us to expand our investment in the development and support of our technology, allowing us to provide solutions for the upcoming design challenges.”

Apache has been delivering silicon proven dynamic power integrity solutions to leading semiconductor companies for the past three and one-half years. Their continuous growth is due to their commitment to customers in addressing one of their top design concerns; the unique power challenges of the nanometer era. With the release of two new products in 2005, PsiWinder and RedHawk-EV, Apache maintains its leadership position in this critical market with their dynamic power closure signoff solution.

“Apache’s rate of consistent monotonic growth has been unparalleled in my EDA experience,” said Keith Mueller, vice president of worldwide sales. “It is driven by a healthy balance of renewal orders, expansion orders from existing customers, and competitive wins resulting in new customers. These key wins demonstrate the maturity and robustness of Apache’s solutions and our continuing ability to deliver the best-in-class solution for one of the customer’s most critical design challenges.”

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