RNS Number:5400K
TransEDA PLC
30 April 2003

                           TransEDA plc ("TransEDA")


                           Result of Strategic Review



TransEDA, the designer and developer of software tools for the EDA industry,
announces the results of the strategic review carried out by the Board with
Sigma Technology Management ("Sigma"), which was previously announced at the
Interims.


The Company has taken a number of actions to further reduce costs and the
following areas of the business have been identified which will improve
operating efficiencies:


*Sales


Total sales in Q3 were #765,000 against a forecast of #750,000 issued on 12
March 2003. Sales invoiced in the period were #789,000, consisting of #327,000
of new product and #462,000 of new maintenance.  It should be noted that, in
line with normal industry policy, TransEDA is typically paid in advance for
maintenance, but does not immediately include this in sales, instead spreading
the revenue evenly over the period of the associated contract. The balance is
held as deferred income in creditors.  There was a total of #822,000 of such
deferred income on the balance sheet as at 31 Dec 2002, of which #351,000 was
subsequently recognised as sales in the quarter.  In addition, #87,000 of new
maintenance invoiced was recognised as sales with the balance added to deferred
income.


There is still no clear indication of a recovery in TransEDA's markets, but as
previously noted there have been indications of a stabilisation of demand and
TransEDA continues to benefit from utilisation of its products amongst the large
installed base, which contributes to a strong recurrent maintenance revenue
stream.


Costs


Further reductions have been identified which TransEDA is seeking to implement
over the next quarter in order to bring costs into line with the current revenue
base, though the full benefit will not be felt until the next financial year.
One action that has already been taken is to work with SRI International to
reduce the minimum payments due to them as part of the technology licensing
agreement between the two companies.


Products


TransEDA is continuing to invest in adding new functionality to the existing
portfolio of structural verification products to maintain its position in this
market. Development is also ongoing for a new generation of property-based tools
and it is encouraging to note that VN Property DX, the first of our formal
verification products, has already achieved its first sales since the launch in
March and evaluation is under way at a number of our key customers. We are
pleased to announce that in recognition of the innovative nature of this work,
TransEDA has recently won a DTI SMART award of #150,000 to contribute towards
development costs.


Overall, the Board maintains its cautious optimism that with the appropriate
actions and assuming no further significant downturn in the operating
environment, TransEDA will be well placed to capitalise on the strength of its
technology, customer relationships and people.


A further update will be announced to shareholders at the end of June.



                                     -Ends-






For further information:

Gordon Whelan                          TransEDA                 023 8068 3505

Keith Monserrat                        Sigma                    020 7653 3200

Ann marie Wilkinson/Gemma Smith        Beattie Financial        020 7398 3300



Notes to Editors:


Sigma Technology Management is a specialist technology advisory and investment
business. The Sigma team will be led by Keith Monserrat, the Chief Technology
Officer at Sigma.  He previously served on the executive boards of Scottish
Telecom plc and Kingston Communications plc and was a founding non-executive
director of Colt Communications.  He currently serves as a non-executive
director at TenisonEDA, a semiconductor EDA tools company based in Cambridge.
He has had previous experience in the semiconductor industry whilst working at
BT, and has a doctorate in semiconductor physics.


* All figures that have been prepared by the Directors are unaudited.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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