For more information, please contact:
Dr. Bhaskar Bose, President
Derivation Systems, Inc.
(760) 431-1400
bose@derivation.com

FOR IMMEDIATE RELEASE

Carlsbad, California, April 13, 1999 - Derivation Systems, Inc. today announced that it has been awarded an Air Force contract valued at approximately $750,000 to develop a secure reconfigurable computing platform based on its Formal Synthesis(tm) technology.

Under this contract, Derivation Systems will design and develop a new generation of embedded network computers that will provide enhanced Internet security. The systems will be capable of executing "safe" JAVA applets in network based secure application servers. These embedded systems can be dynamically configured for application specific computing to speed up computation and enhance security using SRAM based FPGA technology. Example applications are network security scanners, information farming/gathering applications and secure database servers.

According to Dr. Bose, founder and CEO of Derivation Systems, Inc., "The key to these embedded systems is the design methodology employed. We use advanced mathematical techniques to ensure that the final design is equivalent to a high-level specification. Our Formal Synthesis(tm) technology eliminates design errors in the synthesis process."

Derivation Systems was awarded this contract since it has demonstrated the capability of formally synthesizing complex encryption algorithms and 32-bit RISC microprocessors. To complement its Formal Synthesis(tm) technology, Derivation Systems also designs and builds board level OEM products like the PF2000(tm) and the soon to be released PF3000(tm) products. The PF2000(tm) is a PC-104, while the PF3000(tm) module is a PC-104+ based FPGA module. These modules are used for implementing dynamically reconfigurable computing elements. Both PC-104 and PC-104+ are compact bus architecture commonly used in rugged embedded systems applications such as mobile and airborne systems.

About Derivation Systems, Inc.
Headquartered in Carlsbad, California, Derivation Systems is a leading developer of formal verification design tools for the EDA industry and innovative embedded systems products. Founded on the principal that mathematical proof techniques can be used to build critical hardware systems with enhanced reliability, Derivation Systems, has developed its Formal Synthesis(tm) technology under NASA funded contracts.

Derivation Systems' International headquarters are located at 5963 La Place Court, Suite 208, Carlsbad, CA 92008, U.S.A. Tel.: 760-431-1400, Fax.: 760-431-1484.

Learn more about Derivation Systems on the Web at http://www.derivation.com .