Virtex Series of FPGAs

As our XC4000X product families continue to gain broad customer acceptance, we are rolling out a new generation of FPGAs. Introduced in November 1998, the Virtex series of FPGAs is the most promising product introduction in our history.

Already setting company records for design wins and revenue growth, we expect the Virtex architecture to become the platform for all future Xilinx FPGA devices.* The Virtex family redefines the future of programmable logic by offering customers new levels in density and performance, while enabling unprecedented system-level integration. Programmable logic, which has historically resided in the periphery of the system and performed basic logic functions, now moves to the center of the system and drives the performance and functionality of other components. As of year-end, Xilinx was shipping five members of this family including the industry's first one-million system-gate FPGA. By the end of calendar 1999, we plan to ship a two-million system-gate Virtex part using 0.18-micron technology.* These densities now address the heart of the ASIC market and are creating new opportunities for our devices in areas such as next-generation networking, telecommunications and high-end computing. But the growing demand in existing markets for high-end devices is now only part of our story.

* 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.