OTTAWA -- Tundra Semiconductor (TSX:TUN), the leader in System Interconnect, announced today that it has purchased Motorola's PowerPC(r) Host Bridge product line (the MPC106 and the MPC107) for $20 million USD. The acquisition, together with a collaborative design agreement to develop next generation PowerPC host bridge technology, rounds out Tundra's PowerPC System Interconnect portfolio.

Effective immediately, Tundra will market this product line as the Tundra Tsi106( and Tundra Tsi107( PowerPC Host Bridges. The Tsi106 and Tsi107, available today, provide a bridge between the Peripheral Component Interconnect (PCI) bus and PowerPC host processors. Many customers use them in a wide range of applications within the communications, wireless and storage markets.

With the addition of the Tsi106 and Tsi107, Tundra now provides support for a broad range of PowerPC based applications. Tundra's QSpan II( and PowerSpan II( provide system interconnect for PowerPC based communications processors. The Tsi106 and Tsi107 provide system interconnect for stand-alone PowerPC processors, while Tundra's Tsi400( Parallel RapidIO to PCI Bridge and Tsi500( Parallel RapidIO Multi-port Switch provide key RapidIO building blocks for higher end PowerPC based systems.

GROWING MARKET SHARE
This agreement strengthens our System Interconnect portfolio, and extends our relationships with customers within our target markets. These customers can now look to Tundra's broad and expanding portfolio of System Interconnect products for their PowerPC based applications," said Jim Roche, President and CEO of Tundra. "It also deepens our relationship with Motorola, one of the industry's leading PowerPC processor providers."

UPGRADED Q2 GUIDANCE
"The Company expects the Tsi106 and Tsi107 revenues to grow from the current run rate of $4.5 to $5.0 million CAD per quarter," said Norm Paquette, CFO of Tundra. "With these additional revenues, we now project that our overall Q2 revenue will grow by 35% to 40% sequentially over Q1. We also expect Q2 pro forma earnings will grow to approximately $0.09 to $0.10 per share."

RELATED NEWS
In related news, Tundra announced a multi-million dollar collaborative agreement with Motorola. Tundra and Motorola have agreed to collaborate in the development a next generation PowerPC Host Bridge. Please visit the Tundra website at www.tundra.com for more information.

ABOUT THE TUNDRA TSI106 AND TSI107 POWERPC HOST BRIDGES
The Tundra Tsi106 is the industry standard PowerPC Host Bridge with PowerPC, PCI, and Memory Controller functionality. The PowerPC interface supports 64-bit data and 83 MHz on the PowerPC bus, while the PCI Interface supports 32-bit data and a 33 MHz frequency. The internal memory controller has a 64-bit data bus with a frequency of up to 66 MHz.

The Tundra Tsi107 is the next generation industry standard PowerPC Host Bridge with PowerPC, PCI, and Memory Controller functionality. The PowerPC interface supports

64-bit data and 133 MHz on the PowerPC bus, while the PCI Interface supports 32-bit/64-bit data and a 66 MHz frequency. The internal memory controller has a 32-bit/64-bit data bus with a frequency of up to 133 MHz.

Tundra Semiconductor Corp.

Motorola Inc.