Company’s Strong Sales Performance Drives Need for Dedicated Executive Financial Leadership

EL SEGUNDO, Calif. — December 3, 2007 — Applied Wave Research (AWR®), the innovation leader in high-frequency electronic design automation (EDA) tools, today announced that Rick Bottomley has joined the company as its chief financial officer (CFO), further expanding the depth of the management team as AWR enters its next phase of growth and profitability. In his new role, Mr. Bottomley will be responsible for the company’s global finances, accounting, and fiscal planning activities, as well as helping to evaluate business opportunities and strategies.

“AWR is a fast-growing organization with strong momentum coming off of its record six-month financial results, and has proven itself to be a true innovator in the industry,” said Rick Bottomley. “I am looking forward to working with the executive team and helping the company explore its options moving forward with regard to developing new technologies, evaluating potential acquisitions, or pursuing an initial public offering.”

“Rick brings to AWR extensive financial leadership and experience as well as his corporate finance and business development acumen,” said Dane Collins, CEO of AWR. “As we continue to grow our sales and profitability, we want to ensure that we make the best possible decisions about the future direction of the company. I am confident that Rick will provide the leadership and guidance we need and share with us his invaluable expertise in financial management and accounting.”

Mr. Bottomley joins AWR with over 20 years of experience across all facets of financial management in the high-tech industry. Prior to AWR, Rick was the CFO for physical design EDA software tool developer Silicon Design Systems, Inc. and Gilo Ventures, a venture capital firm focusing on investments in early stage companies. He also served as CFO for New Silicon Value, Inc., a full custom ASIC developer and tool designer. Prior to that, he was vice president of finance for Zen Research, PLC, a chip designer utilizing multibeam technology, where he was instrumental in Zen’s successful London IPO in July 2000. Mr. Bottomley began his career with Ernst & Young, LLP, where he worked for many years overseeing the corporate audits and IPOs of high-growth technology companies. Rick holds a BS degree in Accounting and Business Information Systems from California State University, Stanislaus, and is a certified public accountant (CPA).

About Applied Wave Research, Inc.

Applied Wave Research is a leading supplier of high-frequency EDA products for the design of: wireless telecommunications equipment, semiconductors, high-speed computers, networking systems, automotive mobility systems, and a variety of other electronics-based products. AWR is a privately-held company with global development offices, sales offices, training centers, and distribution channels. In September 2005, AWR acquired APLAC Solutions, an emerging leader in simulation and analysis software for analog and radio-frequency (RF) design. APLAC's RF design technology has been used in designing over 30 percent of all mobile phone RF integrated circuits (ICs) worldwide. AWR today has over 700 companies deploying its software worldwide, including virtually every major high-frequency electronic component and system supplier. The company is headquartered at 1960 East Grand Avenue, Suite 430 , El Segundo , California 90245 . For more information about AWR and the company's products, please visit www.appwave.com or call 310-726-3000.

AWR, the AWR logo, ACE, RFA, and AXIEM are either registered trademarks or trademarks of Applied Wave Research, Inc.