SUNNYVALE, Calif. – June 22, 2006 – Stream Processors, Inc. (SPI), a fabless semiconductor company, today announced that it has received $26 million in equity funding led by Austin Ventures, Norwest Venture Partners, Woodside Fund and additional strategic investors.

In addition to their investment, Basil Horangic, general partner of Austin Ventures, Robert B. Abbott, general partner of Norwest Venture Partners and Thomas A. Shields, managing partner of Woodside Fund, sit on the company’s board of directors.

“We are delighted to have venture capitalists of this caliber help us build the company,” said Chip Stearns, president and CEO of SPI. “We plan to aggressively grow the company and develop the SPI Stream Processor™ architecture in order to meet the market demands of next-generation applications that require radically increased levels of processor performance and efficiency.”

SPI plans to utilize this additional funding to continue to develop and commercialize its groundbreaking stream processor architecture for compute-intensive industrial and consumer applications. Based on the stream processing technique invented at Stanford University by SPI co-founder, chairman and Stanford University professor, Bill Dally and his team of graduate students (many of whom are SPI co-founders), SPI is extending its leadership in stream processor development and will be introducing a new class of efficient and easy-to-use processor platforms.

“Stream processing holds great potential for a wide range of applications in both the private and public sectors,” said Robert B. Abbott of Norwest Venture Partners. “The leaders at SPI are uniquely positioned in their technology vision to make stream processing the de facto standard for next generation parallel processor architectures and make it practical for real world applications.”

About Austin Ventures
Austin Ventures has been working with talented entrepreneurs to build valuable companies since 1979. With $3 billion under management, AV is the most active venture capital firm in Texas, and one of the most established in the nation. With a focus on business services, information services, computer and communications hardware, and enterprise software, Austin Ventures invests at all stages of company development, from $100,000 "planned experiments" to $50+ million investments in management buyouts. Visit www.austinventures.com for more information on Austin Ventures.

About Norwest Venture Partners
Norwest Venture Partners (NVP) is a global venture capital firm that has actively partnered with entrepreneurs to build great businesses for more than 45 years. NVP focuses on investments in information technology including: semiconductor and components, systems, software, services and consumer/Internet technologies. The firm currently manages more than $2.5 billion in venture capital out of its office in Palo Alto, Calif. Additional information on Norwest Venture Partners is available at www.nvp.com.

About Woodside Fund
Woodside Fund is a leading venture capital firm that excels in developing early stage technology companies. Founded in 1983, Woodside Fund attributes its long record of success to the high value it places on building productive partnerships with entrepreneurs, other investors and service providers. Typically a lead investor, Woodside Fund invests from $5 million to $10 million in early stage software, semiconductor and network infrastructure companies located primarily on the West Coast. Woodside Fund has approximately $330 million in committed capital under active management. For more information on Woodside Fund, go to www.woodsidefund.com.

About Stream Processors, Inc.
Stream Processors, Inc. (SPI) is a privately held fabless semiconductor company developing an innovative stream processing architecture that that will help consumer and industrial companies accelerate time to market for their products, while greatly reducing system development costs. SPI was founded in 2004 in the recognition that the new era of compute-intensive applications requires radically increased levels of processor performance and efficiency. The company’s technology and products improve application productivity by making parallel processing easier to program and use. Additional information can be found online at http://www.streamprocessors.com/.

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© Copyright Stream Processors, Inc. 2006.
All rights reserved. Stream Processors, Inc. and SPI are trademarks of Stream Processors, Inc. Other productand company names mentioned herein may be trademarks of their respective owners.

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