Gov't of Canada invests $7M in Tundra Semiconductor to develop Next-Generation RapidIO(R) technology

Tundra To Expand Portfolio of RapidIO System Interconnect Products

OTTAWA, Sept. 15 /CNW Telbec/ - Tundra Semiconductor Corporation (TSX:
TUN), the leader in System Interconnect, today announced it has signed an
agreement with Technology Partnerships Canada (TPC), under which it will
receive a seven million dollar investment to accelerate the research and
development of next-generation RapidIO System Interconnect products.
"This investment will enable Tundra to build on the proven success of our
RapidIO System Interconnect capability. We see this as an endorsement of the
viability of RapidIO as the leading interconnect standard for embedded
systems," said Jim Roche, President and CEO of Tundra, "This investment in
innovation demonstrates that Canada is a global leader in its commitment to
the development of new technologies."
As the leading interconnect technology for embedded systems, the RapidIO
standard addresses the industry's need for reliability, increased bandwidth,
and faster speeds in high-performance intra-system interconnect. Tundra joins
other industry leaders such as: Alcatel, AMCC, Freescale Semiconductor,
Ericsson, Lucent Technologies and Texas Instruments, in supporting the RapidIO
standard. Tundra's RapidIO products deliver the performance, power and
configurability that embedded designers need to build reliable, high-speed
communications systems in wireless infrastructure and networking applications.
Tundra is the industry leader in the development of RapidIO System
Interconnect and is the first to bring RapidIO switches to market. Tundra's
current product portfolio includes the Tsi500(TM), a parallel RapidIO multi-
port switch, and the Tsi568A(TM) and Tsi564A(TM), the industry's first serial
RapidIO switches. In addition, customers can access comprehensive design
support tools, such as the Tundra Serial RapidIO Development Platform and the
Tundra Hardware Interoperability Platform II. These development platforms,
combined with other easily accessible design support tools for the RapidIO
product family, provide customers with flexible and rapid prototyping
capability, and enable customers to design next-generation systems faster.
This Technology Partnerships Canada investment is repayable on a royalty
basis, with the level of repayment being conditional on the success in the
marketplace of the technologies supported by the R&D initiatives. Tundra has
received two previous investments from TPC. Tundra has fully repaid the first
investment and has begun repaying the second. The TPC investment will not
alter any previous guidance given to investors. Tundra does not expect that
the investment or the requirement to pay royalties will have a significant
effect upon product margins.

ABOUT TUNDRA

Tundra Semiconductor Corporation (TSX:TUN) delivers standards-based
System Interconnect for use by the world's leading vendors of wireless
infrastructure, networking, storage and pervasive computing systems. Tundra
System Interconnect allows customers to link critical system components while
compressing development cycles and maximizing performance. For more
information, please visit www.tundra.com .

ABOUT TPC

Technology Partnerships Canada is a key instrument for advancing research
and development toward commercialization. Working in partnership with
innovative companies across Canada, TPC shares in the cost of private sector
technology projects in aerospace and defence, in environmental technologies,
and in enabling technologies such as information and communications
technologies, and biotechnology.

TUNDRA is a registered trademark of Tundra Semiconductor Corporation
(Canada, U.S. and U.K.). TUNDRA and the Tundra logo is a registered mark of
Tundra Semiconductor Corporation (Canada - registration in the United States,
European Union, and People's Republic of China pending). Tsi500, Tsi564A, and
Tsi568A are trademarks of Tundra Semiconductor Corporation. Other registered
and unregistered trademarks are the property of their respective owners.

(C) Copyright 2005 Tundra Semiconductor Corporation. All rights reserved.
Information subject to change without notice.