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                                                                 EXHIBIT 10.72.1


                          CATALYST SEMICONDUCTOR, INC.
                              Severance Agreement


This Severance Agreement ("Agreement") is made as of this 11th day of May 1999
between Frank Reynolds ("Employee") and Catalyst Semiconductor, Inc.
("Corporation").

                                   WITNESSETH

WHEREAS, Employee is employed by the Corporation.

WHEREAS, the Corporation and Employee mutually desire to enter into a severance
agreement with respect to Employee's employment by the Corporation.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter contained,
the Corporation and Employee agree as follows:

1)   INVOLUNTARY TERMINATION. If Employee's employment is terminated as a result
     of Involuntary Termination other than for cause, at any time prior to three
     years from this date, Employee will be entitled to consideration as defined
     below:

2)   SEVERANCE BENEFITS FOR INVOLUNTARY TERMINATION FOLLOWING A CHANGE OF
     CONTROL.

     a)   Employee shall be entitled to fifty percent (50%) of his annual base
          salary payable in six monthly installments, commencing one month after
          the termination date.

     b)   All outstanding unvested stock options shall immediately vest as of
          the date of termination and shall remain exercisable for a period of
          three years after said date.

     c)   In addition, as of the termination date, Employee shall be entitled to
          receive any unpaid salary and accrued vacation.

     d)   Change of control is defined as any sale of substantially all of the
          Company's assets, a sale of a majority of its shares or a merger or
          consolidation where the existing shareholders do not control at least
          50% of the total voting power after the event.


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3)   SEVERANCE BENEFITS FOR INVOLUNTARY TERMINATION APART FROM A CHANGE OF
     CONTROL.

     a)   Employee will be entitled to twenty-five percent (25%) of his annual
          base salary as of the termination date. Such payment shall be paid in
          six equal monthly amounts commencing one month after the termination
          date.

     b)   All outstanding vested options as of this date shall remain
          exercisable for a period of one year after termination date.

     c)   In addition, as of the termination date, Employee shall be entitled to
          receive any unpaid salary and accrued vacation pay.

4)   CONFIDENTIAL INFORMATION. Employee shall continue to maintain the
     confidentiality of all confidential and proprietary information of the
     Corporation and shall continue to comply with the terms and conditions of
     the Confidentiality Agreement(s) between Employee and Corporation.

5)   NON-DISPARAGEMENT. Employee agrees not to disparage the Corporation or any
     of its officers, directors, employees, products, vendors or customers.

6)   RELEASE OF CLAIMS. Both parties agree that the foregoing consideration
     represents settlement in full of all outstanding obligations owed by
     Corporation to the Employee. Employee and his respective heirs, executors,
     assigns and agents hereby fully and forever releases Corporation and its
     officers, directors, employees, assigns and agents from any claim, duty,
     obligation or cause of action relating to any matters, known or unknown,
     arising from any omissions, acts or facts that have occurred up until the
     termination date, including without limitation:

     a)   Any claims relating to Employee's employment relationship with the
          Corporation.

     b)   Any claims relating to Employee's receipt of options and/or purchase
          or sales of shares of stock of the Corporation.

     c)   Any claims for violation of state, federal or municipal law.

7)   CONFIDENTIALITY. The parties agree to use their best efforts to maintain in
     confidence the existence, contents and terms of this Agreement except as
     disclosure may be required by law.

8)   TAX CONSEQUENCES. The Corporation makes no representations or warranties
     with respect to the tax consequences of any consideration received by
     Employee under the terms of this Agreement. Employee agrees that he is
     solely responsible for payment, if any, of local, state or federal taxes on
     all consideration received. Employee further agrees to indemnify the
     Corporation for any claims due to his failure to pay any such taxes.





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 9)  ENTIRE AGREEMENT. This Agreement represents the entire agreement and
     understanding between the Corporation and Employee concerning Employee's
     relationships with the Corporation and supersedes any prior written or
     oral agreements concerning Employee relationship with and compensation
     from the Corporation and may not be changed except in written form signed
     by both parties.

10)  GOVERNING LAW; JURISDICTION. This Agreement shall be governed by the laws
     of the State of California. Any disputes shall be resolved by binding
     arbitration by JAMSENDISPUTE in Santa Clara County, to which binding
     arbitration both parties consent.

11)  NO LEGAL REPRESENTATION. Employee is advised to seek his own legal advice
     in this matter and acknowledges that Venture Law Group and Lionel M. Allan
     are acting solely as counsel for the Corporation and not for Employee.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first written above.


Catalyst Semiconductor, Inc.
By:

/s/ RADU VANCO                                /s/ FRANK REYNOLDS
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Radu Vanco                                    In his individual capacity
President & CEO                               Frank Reynolds