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Imagination Tech.PLC (IMG)

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Wednesday 26 September, 2001

Imagination Tech.PLC

Acquisition

Imagination Technologies Group PLC
26 September 2001



               IMAGINATION TECHNOLOGIES ACQUIRES CROSS PRODUCTS

New Strategic Addition to Provide Advanced Development Tools for Imagination's
                   Multi-threaded METATM DSP Processor Core

Imagination Technologies Group plc has agreed to acquire the entire share
capital of Cross Products Limited, a company specialising in designing and
producing high-quality development tools for real-time embedded
microprocessors and DSPs under the well-known CodeScape(R) brand. CodeScape is
best known as the leading worldwide provider of advanced tools for the
Hitachi's successful SuperH(R) family of microprocessors and DSPs.

For microprocessor and DSP cores, advanced development tool support is
critical in providing customers with a highly efficient development and
programming process. The purchase achieves Imagination Technologies' objective
of ensuring its revolutionary multi-threaded META DSP Processor is supported
by world-class tools. It is expected that a full suite of CodeScape tools will
be available for the META core by the first half of 2002. Cross Products will
become part of Imagination Technologies' Metagence Technologies division and
will continue to operate from its existing location in Leeds, England.

Cross Products' CodeScape technology has been widely adopted by leading
companies worldwide for many applications across the consumer, commercial,
industrial, automotive, and other sectors. It consists of a set of multicore,
real-time tools for high-performance embedded microprocessors and DSPs which
includes source-level debuggers, advanced code profilers, fully cycle-accurate
processor simulators, real-time bus monitors, and an integrated development
environment.

The business is being acquired from SegaTM Corporation for a total
consideration of £4.2 million, comprising £2.0 million in cash and £2.2
million in shares. The consideration is due on completion, which is expected
by the end of September. For the year ending 31st March 2001, Cross Products
generated £0.2m profit before tax on revenue of £1.6m and had net assets of £
2.2m. Cash balances in Cross Products are currently around £1.8m.

Hossein Yassaie, CEO of Imagination Technologies says:

'Cross Products will provide us with outstanding expertise and
state-of-the-art technologies and products in the key areas of development
tools and debuggers. This purchase is a logical and important step in the
development of our META architecture and our ability to deliver effective,
off-the-shelf intellectual property, fully supported with advanced development
tools, to our customers. It will also continue its full support for the SuperH
microprocessor architecture developed by Hitachi and STMicroelectronics.'

The CodeScape product line up has today been further expanded to provide
development support for Microsoft Windows CE as well as additional Hitachi
processors.


About Imagination Technologies

Imagination Technologies Group plc is an international company that develops,
licenses and supplies market-leading 2D/3D graphics, digital video, Digital
Signal Processing, audio and speech technologies and products for consumer
entertainment and PC markets. The company has deployed and planned
technologies for games consoles, PCs, arcade entertainment machines, digital
set-top boxes, in-car information/entertainment systems, and mobile devices.
Since it was founded in 1985, the company has introduced, via licensing
arrangements or directly, a succession of innovative technologies, silicon
chips and add-in boards, which have played a major role in the development of
multimedia and computer-based entertainment systems. Imagination Technologies
Group plc has its corporate headquarters in the United Kingdom and is publicly
traded on the London Stock Exchange (FTSE:IMG). More information is available
on the Imagination Technologies web site at www.imgtec.com. Further details on
CodeScape are available at www.codescape.com.

About Metagence Technologies

Metagence Technologies - a division of Imagination Technologies - produces
unique multi-threaded programmable DSP IP cores that allow real-time response
while supporting efficient multi-function operation. Using true hardware
multi-threading, the META family of processors deliver complex DSP and
mathematical capabilities, real-time operation, flexibility and low power
consumption essential to the next generation of entertainment and
communications products. Comprehensive library and tool support enable
embedded system designers to produce highly integrated META architecture based
products quickly and easily.

The Metagence Technologies META processor provides multiple programming
contexts (threads) that can operate independently and concurrently. This
allows systems that are conventionally partitioned into DSP and
general-purpose functions to be implemented on one device with zero overhead
for the switch from one thread to another and instant response to external
stimuli. Visit www.metagence.com for more information.



                                                             26 September 2001


ENQUIRIES:


Imagination Technologies Group plc                  Tel: 01923 260 511
Hossein Yassaie, CEO
Trevor Selby, CFO

College Hill                                        Tel: 020 7457 2020
Matthew Smallwood