Author: Jabejian Elizabeth

The Economist
November 11, 2006
U.S. Edition

Harry Potter revived; The Dutch election

Ahead of the November 22nd poll

An unexpected turnaround in the fortunes of Jan Peter Balkenende

A FEW months ago Dutch voters seemed ready to dump their centre-right
government in the election on November 22nd. Worries over immigration
and Islam, a sluggish economy and a spate of unpopular reforms led to
a big Labour win in local elections in March. The Labour leader,
Wouter Bos, seemed destined to be prime minister. Yet Jan Peter
Balkenende’s Christian Democrats now lead in the polls. With their
VVD (Liberal) partner, they are now predicted to be just shy of a
majority.

Part of the explanation for the turnaround is an improvement in the
economy. Growth has picked up sharply, to 2.8% this year; disposable
incomes have risen; and the labour market is lively again, with
unemployment down to only 5.6%. More voters are coming to see that
this reflects not just a broader European recovery, but also, in
part, the government’s reforms.

Over the past four years, the government of Mr Balkenende, an
ex-professor nicknamed Harry Potter, has reshaped and trimmed the
generous welfare state. It has scrapped incentives for early
retirement, reduced welfare benefits and introduced more competition
in health care. The reforms may have been aimed mainly at putting the
Dutch fiscal house in order, but they have helped the economy as
well.

Another explanation for the Christian Democrats’ revival is Labour’s
self-inflicted wounds. Mr Bos kicked off his campaign with a promise
to resolve a looming pensions crisis by imposing higher taxes on
richer pensioners. After an outcry, including from his own
backbenchers, Mr Bos changed his plan, lowering the tax rate and
increasing the pension bracket to be taxed. "Flexibility", Mr Bos
dubbed it, but it was all the government needed to term him an
untrustworthy opportunist.

Mr Bos has also lost immigrant votes by following the lead of the
Christian Democrats in removing from his party list any ethnic
Turkish candidates who denied the Armenian genocide of 1915. The
Christian Democrats, as champions of the white middle-class, could
afford to take such a stand. But Labour has tried hard to gain
support among immigrants at a time of growing anti-immigrant feeling
after the 2004 murder by a Muslim fanatic of Theo van Gogh, a
film-maker who was rude about Islam. Turkish activists are now
campaigning for the tiny D66party, which walked out of Mr
Balkenende’s coalition in the summer, triggering the election.

Strangely, perhaps, immigration and Islam – the issues that have
dominated Dutch political life ever since 2002, when the populist Pim
Fortuyn was assassinated – have been conspicuously absent from the
election debate. This is not to say that anti-immigrant sentiment has
disappeared. On the contrary, it has become mainstream: all parties
now advocate stricter curbs on immigration and demand better
integration. "Immigration politics has been a great success:
immigration has diminished," says Mark Rutte, leader of the VVD. His
party is best placed to pick up anti-immigrant votes. Rita Verdonk,
the abrasive immigration minister, is a leading VVD light (indeed,
she stood against Mr Rutte for the party leadership).

The election may not produce a quick result. Dutch governments are
coalitions, and the real battle often starts only once the votes are
in. The Christian Democrats and the VVD say they want to stay
together after the election. They may have to lure in a small,
fast-growing Calvinist party, the Christian Union, but its
relationship with the VVD is testy. A coalition between Labour and
the Christian Democrats is also possible. Mr Bos has even hinted that
he might seek an all-left majority with the Greens and the
Socialists.

After a turbulent four years, including not just two political
murders but a string of slightly different governments and the
voters’ rejection of the European Union constitution, the Dutch would
like a period of calm. That may boost their Harry Potter – but only if
there are no more scary confrontations with dark forces.

NGOS SAY NEW GOVERNMENT ORDER BOOSTS CORRUPTION RISKS

Panorama.am
19:28 09/11/06

Some environment organization complain about the order issued by the
government on management of forests. The government decision says
state forests will be accredited to companies if forest economies
cannot manage them on their own or work on losses.

Public organizations in environment believe that this will boost up
corruption risks. Nazely Vardanyan, Armenian Forests NGO Director,
believes the order is underdeveloped and does not include expert
opinions.

EUROPEAN COMMISSION DEMANDS THAT TURKEY OPENS ITS AIRPORTS AND PORTS TO CYPRUS BY DECEMBER
By Hakob Chakrian

AZG Armenian Daily
09/11/2006

The European Commission confirmed yesterday its report and strategy
document on Turkey. Contrary to Ankara’s fears no proposal of freezing
talks with Turkey because of the Cyprus issue cannot be found in them.

Instead, the European Commission demanded that Turkey opens its
airports and ports to Cypriot planes and ships otherwise it will adopt
additional document with suggestions of partial or total freezing of
the talks.

Hurriyet newspaper writes that president of the European Commission
Jose Manuel Barroso assured that despite discords over the Cyprus
issue, the EU will not freeze talks with Turkey. The paper also
informs that France suggested holding referendums in EU member states
on Turkey’s accession but "this immoral suggestion was turned down."

The above documents demand that Turkey revises its article 301 of
its Penal Code, enlarges the rights of Armenian, Greek and Jewish
communities, improves the socio-economic condition of Kurdish
population in the south-eastern regions of the country and regulates
the relations between army and civil authorities in accordance with
the European standards.

TURKISH SCEPTICISM

European Report
November 7, 2006

Turkey is bracing itself for a critical European Commission report on
its progress towards joining the EU, something which could further
reduce the Turkish public’s dwindling trust in the EU. "We are in a
climate where Turkey feels besieged and the Turkish public views every
EU requirement as unreciprocated concessions and interprets them as
dishonesty and even ill-will on the EU’s part," Professor Dogu Ergil,
an Ankara-based political analyst, told AFP.

The sour mood clearly showed in a recent survey: only 32.2% of the
people polled said that Turkey should join the EU while 25.6% said
it should not. In a survey by the same institute in 2004, 67.5% said
that Turkey should definitely join the EU while 57.4% expressed the
same view in a poll in September 2005.

The 8 November report is likely to add to the disillusionment of the
Turks. It is expected to issue harsh criticism on several issues,
most notably the divided island of Cyprus and freedom of expression.

The moves in France to push through a law penalising anyone who denies
that the killings of Armenians in 1915-1917 constituted genocide
and the removal of Turkish-origin candidates from Dutch electoral
lists for refusing to recognise the massacres as genocide "have led
to the impression that even if Turkey fulfills all EU requirements,
there is no guarantee that it will become a member", said Ergil.

ARMENIA: SOCIALISM IN ONE VILLAGE
Marianna Grigoryan

EurasiaNet, NY
Nov 8 2006

"Long Live Communism!," "Long Live Socialism!," "Long Live the Great
October Revolution!" In the Armenian village of Lernamerdz, about 40
kilometers from Yerevan, communism and its triumphant proclamations
are not a dim recollection. They are a way of life.

In Soviet times, there were reportedly only seven communists in
Lernamerdz, a hamlet of over 500 residents. But the situation changed
after Armenia gained independence in 1991, and began to dismantle
monuments to communist leaders, villagers say.

Amidst the economic hardships and political uncertainties of
independence, Lernamerdz Communist Party Secretary Samvel Mirzoyan
says, the village began to see socialism as their sole support.

"They say the country has become independent, but from what?"

commented villager Azat Barseghyan. "Once we were dependent on
Russia, and lived well… [T]oday we depend on the whole world and
are struggling to survive."

"The example of Lernamerdz is a good illustration of what great
results people’s unity and rallying around a common idea can bring,"
said Armenian Communist Party First Secretary Ruben Tovmasyan. "The
powerful ideology of socialism cannot die. It can retreat for a while,
but it is certain to come back and triumph." Communist Party membership
in Armenia currently stands at about 18,000 members; the party has
no seats in parliament.

The lack of political muscle does little to dissuade these villagers,
though. Nearly 15 years after the fall of the Soviet Union, the first
toast at birthday and wedding parties here is in honor of Vladimir
Lenin. Unlike elsewhere in Armenia, schoolchildren are familiar with
communist holidays, and can recite by heart poetry dedicated to the
now much-maligned leader of the 1917 Bolshevik Revolution.

And as in Soviet times, November 7, the anniversary of that
revolution, remains cause for official celebration, with Communist
Party representatives from nearby towns and the party’s national
leadership on hand to congratulate villagers.

"Our leader is with us, hurrah!" ring out the cries of villagers
applauding a silvery two-ton statue of Lenin that stands in the center
of the village. The monument, adorned with a red banner that proclaims
"Proletarians of All Countries, Unite!," arrived only in 1997. It is
repaired every year to maintain its appearance.

The central government’s enthusiasm for the festivities runs thin,
however. Villagers told EurasiaNet that the government had changed
the principal of the Lernamerdz school and forbidden children to
come to school in red scarves, or to take part in the November 7
celebration. But some still attended.

"The spirit of communism is in this village," commented Sofik
Manukyan, second secretary of the Echmiadzin city branch of the
Armenian Communist Party.

Even so, that "spirit" has so far done little to improve living
conditions for village inhabitants. Unemployment still looms large.

Some 150 people have left Lernamerdz in the past few years, said
villager Barseghyan. Twenty-three houses have had their doors locked
for years, he added.

Nonetheless, optimism for a better life persists. It is all just a
matter of time, villagers say.

"When communism returns to Armenia, people will lead a happy life,"
concluded 41-year-old Rostam Avdalyan. "Everyone will be happy then
and the sun will shine brightly."

Editor’s Note: Marianna Grigoryan is a reporter for the Armenianow.com
weekly in Yerevan. Onnik Krikorian is a freelance journalist and
photographer from the United Kingdom based in the Republic of
Armenia. He works for a variety of publications and international
organizations.

MINISTER OSKANIAN’S RESPONSE TO ABDULLAH GUL

Public Radio, Armenia
Nov 6 2006

RA Foreign Minister commented on some remarks of his Turkish
counterpart Abdullah Gul made in an interview with Radio Liberty.

Minister Oskanian said in particular:

We remain amazed that a letter sent by President Kocharyan to Prime
Minister Erdogan in April 2005 remains ignored, simply because the
Turkish authorities did not like the response contained therein,
and do not wish to broaden the scope of discussion beyond history.

President Kocharyan clearly said to Prime Minister Erdogan that the
"suggestion to address the past cannot be effective if it deflects
from addressing the present and the future. In order to engage in
a useful dialog, we need to create the appropriate and conducive
political environment. It is the responsibility of governments to
develop bilateral relations and we do not have the right to delegate
that responsibility to historians. That is why we have proposed
and propose again that, without pre-conditions, we establish normal
relations between our two countries."

In that context, President Kocharyan said, "an intergovernmental
commission can meet to discuss any and all outstanding issues between
our two nations, with the aim of resolving them and coming to an
understanding."

Foreign Minister Gul’s recent comments to Radio Liberty, insisting that
the existence of flights between Armenia and Turkey, and of Armenian
citizens in Turkey, is evidence that ‘the borders are essentially open’
is disingenuous. First, the number of Armenians from Armenia living
and working in Turkey do not approach the numbers he claims. Second,
open borders assume direct contacts between peoples, unobstructed
relations across the border and a functioning transport infrastructure.

We stand by our response, which we consider to be a positive one and
we wonder whether the Turkish insistence on a historical commission
is genuine. After all, we have in fact agreed to discussions on all
issues, in the context of open borders.

Further, so long as Article 301, which criminalizes mere discussion
of the genocide topic, remains on the books in Turkey, an invitation
to open dialogue cannot be taken seriously. Finally, outside Turkey,
scholars – Armenians, Turks and others – have studied these issues
and have reached their own independent conclusions. The most notable
among these is the May 2006 letter to Prime Minister Erdogan by the
International Assn of Genocide Scholars wherein they collectively and
unanimously affirmed the fact of the Genocide and called on the Turkish
government to acknowledge the responsibility of a previous government.

In light of these complex realities, we can only repeat our readiness
to enter into dialogue and normal relations with our neighbor.

SERGE SARGSIAN HAS NO CONCERN ABOUT TRANSFER OF BIG ARMENIAN ENTERPRISES TO RUSSIAN COMPANIES

Noyan Tapan News Agency, Armenia
Nov 6 2006

YEREVAN, NOVEMBER 6, NOYAN TAPAN. The Armenian government will give
consent for the deal on selling 90% of ArmenTel shares owned by the
Greek company OTE to the Russian company Vympelcom. The RA Defence
Minister Serge Sargsian expressed this opinion during a talk with
reporters on November 6. At the same time he refuted the assumptions
about his relation to the deal.

Responding to NT correspondent’s question, S. Sargsian said that he
has no concern in connection with the transfer of Armenia’s biggest
strategical facilities to Russia. "I do not consider it dangerous,
because I have not yet seen the Russian side use its economic
leverage in Armenia. Can you give an example when the Russian capital
in Armenia has been used to subject us to political pressure?,"
the minister noted. In response to the question about the use of
economic leverage by Russia to put pressure on Georgia, he replied:
"Should I be concerned about Georgia as well?"

According to the minister, no American or European company has
expressed an intention to make investment in the 5th power unit of
Hrazdan Thermal Power Plant or a gas operation enterprise. Reminding
that two Russian companies and an Arab one had participated in the
final stage of the tender for sale of ArmenTel shares, S. Sargsian
noted: "But would it have been more beneficial for Armenia, if the
Arab comapny had acquired ArmenTel?"

CRITICAL EU REPORT RISKS FURTHER ALIENATING TURKS: ANALYSTS
by Hande Culpan

Agence France Presse — English
November 6, 2006 Monday

Turkey was Monday bracing for a critical report on its progress
towards joining the European Union which could further reduce the
Turkish public’s dwindling support and trust for the 25-nation bloc,
analysts said.

"We are past the point where the report will be perceived as it should
be," Professor Dogu Ergil, an Ankara-based political analyst, told AFP.

"We are in a climate where Turkey feels besieged and the Turkish public
views every EU requirement as unreciprocated concessions and interprets
them as dishonesty and even ill-will on the EU’s part," he said.

The sour mood clearly showed in a survey carried out by the A Institute
on September 23-24.

Only 32.2 percent of thoe 2,408 people questioned said Turkey should
join the EU while 25.6 percent said it should not.

In a survey by the same institute in 2004, 67.5 percent said Turkey
should definitely join the EU, while 57.4 percent expressed the same
view in a poll in September 2005.

Only 7.2 percent of those questioned in the latest opinion poll said
they trusted the EU, while 78.1 percent said they did not.

The report — to be issued Wednesday by the EU’s executive arm, the
European Comission — is likely to add to the disillusionment of the
Turks. It is expected to issue harsh criticism on several issues,
most notably the divided island of Cyprus.

Ankara is under pressure to open its ports and airports to vessels
from Cyprus, an EU member it does not recognize, under a customs
union agreement with the bloc.

But Turkey refuses to do so until the EU eases the international
isolation of the breakaway Turkish Cypriot community in northern
Cyprus, whose welfare has for years been a cornerstone of Turkish
foreign policy and whose plight is viewed by the Turkish public as a
"national cause".

"The Cyprus issue has inevitably led to tension, with hardening
rhetoric on both sides," Mehmet Ozcan, a senior researcher at the
Institute of International Strategic Studies here, told AFP.

"The Ankara government’s non-concessional attitude on Cyprus, in view
of upcoming presidential and general elections next year, has had a
direct affect on Turkish public support for EU," he added.

The European Commission report is also likely to criticize Turkey
for failing to ensure freedom of expression by modifying or scrapping
Article 301 of Turkey’s penal code.

Dozens of writers and authors have been pursued by the courts under
Article 301, including 2006 Nobel literature prize winner Orhan
Pamuk. Most have been brought to court for remarks contesting Ankara’s
official line on the 1915-1917 massacres of Armenians, which Turkey
categorically rejects as constituting genocide.

The Commission’s expected request to modify or scrap Article 301
comes amid moves in France to push through a law penalizing anyone
who denies that the killings constituted genocide and the removal of
Turkish-origin candidates from Dutch electoral lists for refusing to
recognize the massacres as genocide.

"The moves in France and the Netherlands have led to the impression
that even if Turkey fulfills all EU requirements, there is no guarantee
that it will become a member," Ergil said.

Ozcan said the report’s expected criticism over Article 301 was
unlikely to go down well in Turkey due to the potentially explosive
nature of the Armenian question.

"The Turkish people cannot take any more," he said.

According to press reports here, the European Commission report will
also chide Turkey on the slowing pace of reforms, the continuing
practice of torture and the military’s influence in politics.

Turkey began membership talks with the European Union last year amid
widespread skepticism as to whether the mainly Muslim nation of some
70 million people has a place in Europe.

GOVERNMENT OF GEORGIA INTERFERES TO THE CONSTRUCTION OF MONUMENT TO ARMENIAN GENERAL, GEORGIAN CULTURE MINISTER
Author: A.Ismayilova

TREND, Azerbaijan
Nov 7 2006

Georgiy Gabashvili, the Georgian Culture Minister told Trend
exclusively that Tbilisi will take every effort not to allow
the establishment of a monument to the Armenian General in
Samkhe-Javaheti. It can affect the relationships with Azerbaijan.

An initiative on the establishment of a monument to a Georgian
general Dalbandian, who participated in Karabakh war, was put in
Samkhe-Javahetti Region densely populated with Armenians. The new
executive power of the region, where the Armenians are represented,
said that there resolution would be enough to open the monument.

The Georgian Minister also said that in accordance with the laws of
Georgia the local authorities take a decision on the establishment
of monuments. However, when the issue gains a political color, we
should take into consideration the neighboring Azerbaijan’s interests,
Gabashvili stressed. Georgia has very good relationships both with
Azerbaijan and Armenia, but will certainly deliberate in issues of
our friends’ concern.

Business Wire (press release), CA
Nov 3 2006

Dr. Yervant Zorian Wins IEEE’s Hans Karlsson Award for Technical
Leadership and Achievement Through Collaboration

Virage Logic Chief Scientist Recognized for Leadership, Outstanding
Diplomacy, Team Facilitation, and Joint Achievement in the Computer
Industry

FREMONT, Calif.–(BUSINESS WIRE)–Dr. Yervant Zorian, vice president
and chief scientist at Virage Logic Corporation (Nasdaq: VIRL), a
pioneer in Silicon Aware IP~Y and leading provider of semiconductor
intellectual property (IP) platforms, has garnered numerous awards
for his leadership and technology innovation in embedded test and
repair of semiconductor IP. Adding to his list of honors, Dr. Zorian
this week received the Hans Karlsson Award for Technical Leadership
and Achievement Through Collaboration from the IEEE (Institute of
Electrical and Electronics Engineers) Computer Society in recognition
of outstanding skills and dedication to diplomacy, and joint
achievement.

The award was presented on November 1, 2006, in Southern California,
at a special banquet. Deborah Cooper, president of the IEEE Computer
Society, presented Dr. Zorian with the award and noted, "I am pleased
to present this award to Dr. Yervant Zorian, whose seminal work in
shaping the semiconductor industry honors Hans Karlsson’s memory. At
the core of the Hans Karlsson Award is recognition of technical
leadership, diplomacy, and joint achievement. Dr. Zorian’s work as a
founder, leader, and advocate of IEEE Standard 1500 put to the test
his honed diplomatic skills. His outstanding achievement working with
a highly diverse team is testament to his exemplary leadership
skills. We are fortunate to have Yervant as a leader, a colleague and
friend of the IEEE Computer Society."

The IEEE Computer Society’s selection committee, comprising
distinguished professionals in the computer industry, selected Dr.
Zorian based on nominations and recommendations from his peers. The
Hans Karlsson Award recognizes teamwork in areas of the computer
industry where individual aspirations, corporate, and organizational
rivalry can hinder collaboration. Since its inception in 1992, the
award has only been given six times.

"Yervant is a recognized visionary in the industry and a key member
of the Virage Logic executive team. His contributions in the area of
embedded memory test and repair helped Virage Logic define a new
class of IP that we call ‘Silicon Aware IP’," said Adam Kablanian,
president and CEO at Virage Logic. "The benefits this IP provides in
terms of yield optimization and cost savings have helped to further
establish Virage Logic as the industry’s trusted IP partner."

Dr. Zorian joined Virage Logic in 2000 and became an immediate
catalyst for collaboration and teamwork. Dr. Zorian’s work was key in
Virage Logic’s development of a new class of IP called Silicon Aware
IPTM. Silicon Aware IP is Physical IP, such as memories, logic and
I/Os, designed with embedded Infrastructure IP for test, diagnostics,
repair, and yield enhancements. The result is IP that is high
yielding and enables rapid time-to-volume at advanced process nodes.
In addition, Silicon Aware IP results in much higher test quality and
reliability. Today, Virage Logic believes it is the leading
commercial IP provider to offer Silicon Aware IP, an example of which
is its Self-Test and Repair (STAR) Memory SystemTM.

"I am honored to receive this prestigious award," said Dr. Zorian, in
his acceptance speech. "I feel fortunate to work closely with so many
talented and forward-thinking individuals in the semiconductor
industry. Our teamwork has fostered system-on-chip test
interoperability throughout the industry, and allowed us at Virage
Logic to leverage it and extend it further to achieve self-repair in
our Silicon Aware IP, and thus create innovative and exceptional
results that I am extremely proud of."

A photo of Yervant Zorian is available upon request.

About Dr. Zorian

Dr. Zorian joined Virage Logic in 2000 as chief scientist. Prior to
joining Virage Logic, he served as chief technology advisor at
LogicVision and as a distinguished member of technical staff at AT&T
Bell Labs. His responsibilities included developing and disseminating
embedded test and repair solutions for IP cores, chips, boards and
systems. Dr. Zorian also serves on the Board of Directors of several
public and privately owned companies.

Dr. Zorian served as the IEEE Computer Society Vice President for
Conferences and Tutorials as well as the Editor-in-Chief Emeritus of
the IEEE Design & Test of Computers. He also participates in
editorial advisory boards of IEEE Spectrum and JETTA. He has chaired
numerous conferences, symposia, workshops, and the IEEE Test
Technology Technical Council. He founded and chairs the IEEE 1500
Standard Working Group, and the IEEE Infrastructure IP Workshop and
Design-for-Manufacturability & Yield Workshop.

Dr. Zorian has authored over 300 papers and four books, received
several best paper awards, and holds fourteen U.S. patents. He is a
Golden Core Member of IEEE Computer Society, Honorary Doctor of the
National Academy of Sciences of Armenia, and a Fellow of IEEE. He was
the 2005 recipient of the prestigious IEEE Industrial Pioneer Award.
He was also selected by Electrical Engineering Times (EE Times) among
the top 13 influencers on the semiconductor industry. Dr. Zorian
received his master’s degree in Computer Engineering from the
University of Southern California, a doctorate in Electrical
Engineering from McGill University and an executive master’s degree
in Business Administration from Wharton School of Business,
University of Pennsylvania.

About the Hans Karlsson Award

This award, given by the IEEE Computer Society, was established in
1992 in memory of Hans Karlsson, chairman and father of the IEEE 1301
family of standards. The award is presented in recognition of
outstanding technical skills and dedication to diplomacy, team
facilitation and joint achievement, in areas of the computer industry
where individual aspirations, corporate and organizational rivalry
could otherwise be counter to the common good.

About the IEEE Computer Society

IEEE Computer Society is the world’s leading association of computing
professionals with 100,000 members in over 140 countries. Founded in
1946 and today the largest society within the IEEE, this
not-for-profit organization is the authoritative provider of
technical information and services for computing communities
worldwide. It offers a full range of career enhancing products and
services through its 124,000-article digital library, 20+
peer-reviewed print publications, distance learning courseware,
online technical books, 150 technical conferences, standards
development, 32 technical committees, certification for software
professionals, 200 local society chapters, awards and scholarships,
and much more. Visit IEEE Computer Society at

About Virage Logic Corporation

Founded in 1996, Virage Logic Corporation (Nasdaq:VIRL) rapidly
established itself as a technology and market leader in providing
advanced embedded memory intellectual property (IP) for the design of
complex integrated circuits. Now, as the company celebrates its 10th
anniversary, it is a global leader in semiconductor IP platforms
comprising embedded memories, logic, and I/Os and is pioneering the
development of a new class of IP called Silicon Aware IP(TM). Silicon
Aware IP tightly integrates Physical IP (memory, logic and I/Os) with
the embedded test, diagnostic, and repair capabilities of
Infrastructure IP to help ensure manufacturability and optimized
yield at the advanced process nodes. Virage Logic’s highly
differentiated product portfolio provides higher performance, lower
power, higher density and optimal yield to foundries, integrated
device manufacturers (IDMs) and fabless customers who develop
products for the consumer, communications and networking, hand-held
and portable, and computer and graphics markets. The company uses its
FirstPass-Silicon(TM) Characterization Lab for certain products to
help ensure high quality, reliable IP across a wide range of
foundries and process technologies. The company also prides itself on
providing superior customer support and was recently named Customer
Service Leader of the Year in the Semiconductor IP Market by Frost &
Sullivan. Headquartered in Fremont, California, Virage Logic has R&D,
sales and support offices worldwide. For more information, visit

SAFE HARBOR STATEMENT FOR VIRAGE LOGIC UNDER THE PRIVATE SECURITIES
LITIGATION REFORM ACT OF 1995:

Statements made in this news release, other than statements of
historical fact, are forward-looking statements, including, for
example, statements relating to industry and company trends, business
outlook and products. Forward-looking statements are subject to a
number of known and unknown risks and uncertainties, which might
cause actual results to differ materially from those expressed or
implied by such statements. These risks and uncertainties include
Virage Logic’s ability to improve its operations; its ability to
forecast its business, including its revenue, income and order flow
outlook; Virage Logic’s ability to execute on its strategy to become
a provider of semiconductor IP platforms; Virage Logic’s ability to
continue to develop new products and maintain and develop new
relationships with third-party foundries and integrated device
manufacturers; adoption of Virage Logic’s technologies by
semiconductor companies and increases or fluctuations in the demand
for their products; the company’s ability to overcome the challenges
associated with establishing licensing relationships with
semiconductor companies; the company’s ability to obtain royalty
revenues from customers in addition to license fees, to receive
accurate information necessary for calculating royalty revenues and
to collect royalty revenues from customers; business and economic
conditions generally and in the semiconductor industry in particular;
competition in the market for semiconductor IP platforms; and other
risks including those described in the company’s Annual Report on
Form 10-K for the period ended September 30, 2005, and in Virage
Logic’s other periodic reports filed with the SEC, all of which are
available from Virage Logic’s website () or from
the SEC’s website (), and in news releases and other
communications. Virage Logic disclaims any intention or duty to
update any forward-looking statements made in this news release.

Contacts
Virage Logic Corporation
Sabina Burns, 510-743-8115
[email protected]
or
McCle nahan Bruer Communications
Venera Cushman, 503-546-1035
[email protected]