Internet Reconfigurable Logic (IRL) Technology

To put this in perspective, consider the case of a cellular base station manufactured by a large telecommunications company. A base station acts as the central radio transmitter and receiver that maintains communications with all mobile handsets within a specified cell site. 1.) Today, when a communications standard changes, an engineer must travel to each base station to physically upgrade or change circuit boards. 2.) With IRL technology, the same company will be able to use the Internet to remotely download software changes directly into the Xilinx chips in each base station, resulting in significant savings in time and money.

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This capability positions Xilinx to succeed in a networked world that is increasingly reliant on the Internet and wireless communications.* International Data Corporation estimates that by the end of 2002 there will be 500 million web-enabled hardware devices installed. These devices will range from satellite communications systems to next-generation networking equipment and digital set-top boxes. Programmable logic is uniquely applicable to these products precisely because of its reprogrammability. By extending the life of products once they are in the field, our customers will more readily keep up with evolving industry standards, while enhancing and improving the performance of their products even after they are installed.

* These are forward-looking statements that include certain risks and uncertainties including timely introduction and availability of new products, the impact of competitive pricing and products, customer acceptance of new products, the dependence upon third-party wafer suppliers and other subcontractors, the economic health of our end markets and the geographies that we serve, and other risks that are discussed in the attached Form 10-K.