Nuvation and Arrow Electronics announce ACES Alliance

San Jose, Calif., May 24, 2002 — Nuvation, a leading engineering design services (EDS) firm in Silicon Valley, today announced that it has signed an agreement with Arrow Consulting Engineering Services (ACES), a division of Arrow Electronics, Inc. (NYSE: ARW), positioning Nuvation as a principal member of Arrow's ACES program.

Arrow launched the ACES program, which offers third-party engineering design services to assist customers with their outsourcing needs, during the week of the Embedded Systems Conference 2002.

Arrow, a leader in engineering services, is forming alliances with some of the best design companies in North America. The companies selected are pre-screened, qualified and certified by Arrow. The ACES program will bring a higher level of focus and talent to Arrow customers while eliminating their time spent on the selection process, and therefore will help accelerate their time to market.

"Nuvation has enjoyed a good working relationship with Arrow since our inception." said Michael Worry, CEO of Nuvation. "They are clearly a leader in the marketplace and together we enhance each other's capabilities with customers across North America. Our partnership also benefits our mutual customers by offering design services with knowledge of component availability and anticipated life cycles."

As the complexity of technology increases, it becomes mission-critical for technology companies to access immediate embedded system design expertise. Over the past few years, this requirement has fueled a growing trend among leading technology companies to outsource embedded system designs. Nuvation has built a reputation as a leading Silicon Valley engineering design service provider for FPGA, ASIC, board, firmware, and firmware design. Nuvation has been recognized for its engineering efficiency, technical capabilities, and commitment to meeting time-to-market goals.

"We're pleased to announce the addition of Nuvation to the ACES program. Nuvation's strategic supplier relationships, including it's status as an Altera Certified Design Center, Altera's premier design services partnership program, align well with Arrow's line card," said Jim Caraccio, ACES Regional Manager. "Nuvation's background in high speed board design, signal integrity analysis, IP development and proven track record in the Silicon Valley, make them a great addition to the ACES program."

About Arrow Electronics

Arrow Electronics is one of the world's largest distributors of electronic components and computer products and is a leading provider of services to the electronics industry. Headquartered in Melville, New York, Arrow serves as a supply channel partner for more than 600 suppliers and 200,000 original equipment manufacturers, contract manufacturers, and commercial customers through more than 225 sales facilities and 23 distribution centers in 39 countries. Visit Arrow Electronics at www.arrow.com

About Nuvation

Nuvation is a leading Electronics Design Services (EDS) firm that provides ASIC, FPGA, board, and firmware design services for the embedded systems industry. Nuvation's design experience spans industries such as Communications, Consumer Electronics, Medical , and Security/Defense. Founded in 1997 and based in San Jose, California, Nuvation's customers include a number of notable companies such as Altera, Lucent, HP, JDS Uniphase, Infineon, LeapFrog, SanDisk, Finisar, and Trimble Navigation. Nuvation is a wholly-owned subsidiary of IAR Systems (OMX:IAR). More information is available at www.nuvation.com

# # #

Contacts:

Chris Hallahan
VP Sales & Marketing
Nuvation
408-228-5580 x122
chris.hallahan@nuvation.com

Maria Neder
Public Relations
Arrow Electronics
516-391-8535
mneder@arrow.com