Shareholder Update

RNS Number:0708N
TransEDA PLC
02 July 2003

                           TransEDA plc ("TransEDA")

                              Shareholder Update



TransEDA, the designer and developer of software tools for the EDA industry, is
pleased to announce its report (that was carried out by the Board with Sigma
Technology Management ("Sigma")), which gives shareholders a further update to
the announcement that was made in April 2003.



Design Automation Conference (DAC) - Anaheim, California (2nd June to 5th June)

The Company used this year's DAC, the premier international EDA and silicon
solution conference, to launch PA Studio the second product in its series of
property based tools and continue the promotion of VN Property, which has
already achieved its first commercial sale. PA-Studio is a tool that allows chip
designers to graphically create, verify and debug properties and can be used in
standalone mode or in conjunction with VN Property.  The combined package is
currently in evaluation with a number of our leading European customers.



The conference confirmed that TransEDA is establishing a leadership position in
the emerging property verification market.  The Board believes that customer
feedback at the conference is vindicating the company's strategy to develop and
launch a set of EDA property tools that complement existing code coverage
products. The company is continuing to develop further property-based products.



The Board believes that DAC reflected the restrained mood of the EDA industry,
as there was no clear visibility of the timing of end user demand for more
complex applications that can leverage new chip technology and the advanced
fabrication capacity currently available.  However, it is evident that such
design capability will require and therefore drive the need for sophisticated
functional verification tools such as PA Studio and VN Property.   However, it
is clear that in the current economic environment customers are reluctant to
invest in new software and prefer to renew existing licences for tried and
tested EDA packages.



Cost Control Measures

A set of cost control measures have been implemented which have resulted in an
annual saving of #370,000. These measures are made up of a combination of
headcount reductions, savings from the renegotiation of the SRI agreement and
relocating the European administrative function to the UK.



Board Changes

One of the company's principle objectives in the coming year is to focus on
sales and new product introductions. Therefore the Board believes that it is in
the company's interest to strengthen the non-executive representation with the
relevant experience. The company is currently considering suitable candidates.



R&D Tax Credit

As in previous years the company has submitted a claim for an R&D tax credit.
The claim for the year ended 30 June 2002 is #81,000. A claim for 2003 will be
made as soon as possible.



TransEDA will announce preliminary results for the year to 30 June 2003 on 30
September 2003.





For further information:



Gordon Whelan                        TransEDA                 023 8068 3505

Keith Monserrat                      Sigma                    020 7653 3200

Ann marie Wilkinson/Gemma Smith      Beattie Financial        020 7398 3300






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