AMBERWAVE AND MITSUBISHI FORM STRATEGIC ALLIANCE TO INTRODUCE STRAINED SILICON TO JAPANESE SEMICONDUCTOR MANUFACTURERS

Industry Leaders Team To Help Japanese Semicon Companies Increase
Speed and Performance Through Materials Advancement

Salem, N.H.—January 6, 2003—AmberWave Systems, the complete commercial source for implementing market-ready strained silicon technologies, today announced it has formed a strategic alliance with Mitsubishi Corporation to introduce strained silicon to Japanese semiconductor manufacturers. Mitsubishi Corporation will act as AmberWave's exclusive agent in Japan and will help the company establish a presence in the Japanese market. Strained silicon has been gaining interest worldwide for its ability to increase the speed of computer chips while decreasing their power consumption, and AmberWave is the first company to have a commercialized version of this new material and process.

"Strained silicon offers semiconductor manufacturers the chance to break out of the ever increasing manufacturing cost spiral and instead look to materials advancements to improve performance, without adding excessive cost," said Yoshikazu Nose, General Manager of Mitsubishi Corporation Semiconductor and Electronic Devices Business Unit. "By guiding AmberWave's entry into the Japanese market, we have the opportunity to help Japanese manufacturers see materials advancement as a strategic investment that can provide a competitive edge."

Under terms of the multi-year agreement, Mitsubishi Corporation will work with AmberWave to identify target companies, foundries and IDMs, and will act as AmberWave's sales agent in Japan. Mitsubishi Corporation's sales force will begin offering strained silicon test wafers and starter kits to Japanese companies looking to integrate strained silicon into their manufacturing processes. Mitsubishi Corporation will also work with AmberWave to help the company license its intellectual property to Japanese manufacturers.

"This strategic alliance with Mitsubishi Corporation clearly demonstrates that the semiconductor industry worldwide is quickly moving toward the adoption of strained silicon throughout all levels of the semiconductor manufacturing supply chain," said Mark Wolf, CEO of AmberWave Systems Corporation. "Mitsubishi Corporation will help us expand our market presence internationally and help increase the number of companies that are embracing strained silicon outside North America."

AmberWave's strained silicon technology (eMOS™) leverages more than a decade of advanced materials research and development, originated at MIT, to make market-ready strained silicon technologies available to wafer manufacturers, foundries, fabless semiconductor companies and integrated device manufacturers. Strained silicon enables chips to have a 20-30 percent speed enhancement, resulting in a significant power reduction.

About Mitsubishi International
Mitsubishi Corporation is one of the world's most diverse enterprises. This diversity is manifested in MC's 780 subsidiaries and affiliates and its network of 39 offices in Japan and 181 overseas. The company's extensive network and wide-ranging activities give it a decisive edge in gathering the timely, accurate market information vital to success. The company's seven business groups-New Business Initiative, IT & Electronics Business, Energy Business, Metals, Machinery, Chemicals and Living Essentials-work closely with clients to develop new business opportunities. More information on the company can be found at http://mitusbishi.co.jp/En/index_top.html.

About AmberWave Systems
Based in Salem, New Hampshire, AmberWave Systems Corporation is a privately held, venture-financed company that is revolutionizing the communications marketplace and re-defining the state of the art in advanced semiconductor technologies. The company holds over 25 patents, either issued or pending, and many of its employees hold advanced degrees from renowned universities including Cornell, Georgia Tech, MIT and West Point. This pioneering team operates today in a new, 30,000-square foot facility that features an integrated environmental design, a progressive and interactive work environment, and an advanced Class 10 clean room.

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