AWR Announces Tenth Consecutive Year of Record Growth and Financial Performance

Dane Collins Takes Over as CEO

EL SEGUNDO, Calif. — April 2, 2007 — Applied Wave Research, Inc. (AWR®), a leading provider of high-frequency electronic design automation (EDA) tools, today announced the continued success of the company’ s long-term growth strategy with an impressive 20% increase in sales for fiscal year 2007. Achievements driving AWR’s high performance include strong growth across all products lines, and the addition of strategic new customer accounts and expansion of existing accounts. Significant AWR customers include Nokia Corporation, Skyworks Solutions, Inc., The SAAB Group, and TriQuint Semiconductor, Inc. Other factors contributing to the success include the on-going adoption of APLAC® RF circuit simulation solution, continued expansion of AWR's research and development efforts and sales and support networks worldwide, major product shipments, and the addition of key new EDA partners.

“Fiscal 2007 has been fantastic with clear execution and achievement of all the goals across the company,” said Ted Miracco, co-founder and executive vice president of AWR. “The close of AWR’s fiscal year marks ten consecutive years of record growth for the company, and our next year outlook is very promising. Our Series C financing round combined with the addition of key new investors has contributed significantly to our expanding presence in the EDA market."

In conjunction with the announcement of AWR’s ongoing financial success and growth, AWR also announced that Dane Collins, former executive vice president, is taking over as CEO effective immediately. Collins, who has been with the company since 1998, replaces James Spoto, who is leaving the company in order to travel and spend more time with his family. The change is being made as part of an overall strategic plan that maps to the long-term goals of the company.

“James’ departure is part of a planned transition,” said Dane Collins. “James has invested over five intense, hard-working years here as CEO. Our appreciation and best wishes go with him as he moves on to new ventures, and we are pleased that he will continue his relationship with AWR as a trusted advisor. I want to stress that there will be no change in the strategic direction or product line at AWR, and we continue to be completely committed to the success of our customers.”

“My time at AWR has been longer than I expected, and I want to spend more time with my family,” said James. “Under my tenure, AWR has grown substantially and I’m proud of the success we have achieved. With the company in such a strong position, it is a good time for me to move on. I firmly believe that under Dane’s leadership, along with the rest of the very talented AWR team, the company is well equipped to move forward to further heights.”

About Dane Collins
Dane Collins has many years of industry experience, having managed both development and operations groups at EEsof, Inc., Cadence Design Systems, and High Level Design Systems (HLD). He earned his BSEE in 1983 from Virginia Polytechnic Institute and began his career as a microwave circuit designer at General Dynamics. In 1987 he joined EEsof, Inc. as an applications engineer, and then moved to Cadence Design Systems, where he was one of the founding members of the Cadence Analog Division, which was created to address the analog IC market. As the director of the design environment group, Dane led the development team that created Analog Artist, the first mixed analog-digital design environment, which achieved tremendous commercial success. He then left Cadence to help found HLD, starting in product development before moving into operations. In 1998 Dane joined AWR, starting first as vice president of engineering before becoming executive vice president.