Zarlink Semiconductor Inc.
TSX : ZL

Zarlink Semiconductor Inc.

September 08, 2009 09:30 ET

Gigaset Communications Chooses Zarlink Voice Telephony Devices for New Converged Product That Merges Wireless and Wired Voice Services

OTTAWA, ONTARIO--(Marketwire - Sept. 8, 2009) -

- Integrating the Zarlink VE880 chipset, Gigaset One home plus mobile convergence technology allows users to merge mobile and home phone services

- VE880 chipset and Gigaset One on display at Broadband World Forum Europe 2009 (Zarlink booth #165)

Zarlink Semiconductor (TSX:ZL) today announced that its VE880 VoicePort Series provides critical voice connectivity in an innovative fixed mobile convergence system from Gigaset Communications that merges wireless voice service and the wired home phone network.

The Gigaset One home plus mobile convergence technology solution allows users to make and receive mobile calls on any corded or cordless phone in the home. For example, with the Gigaset One system, a user can answer a mobile phone call on any home phone extension. The system integrates Zarlink's VE880 chipset to help ensure reliable, high-quality voice service between the wireless network and the wired home telephone system.

"Fixed mobile convergence applications, which allow consumers to seamlessly and transparently integrate cellular and home phone services, represent a significant opportunity for our voice telephony portfolio," said Kirk Mandy, President and CEO, Zarlink Semiconductor. "Our deep understanding of analog line circuits, extensive portfolio of telephony interface products, and strong relationships with manufacturers such as Gigaset Communications will allow us to capitalize on this growing market."

Gigaset Communications is one of the world's largest manufacturers of cordless telephones under the Siemens Gigaset brand. The Gigaset One will soon be available in retail stores in the United States, with one million systems expected to be sold over the next two years.

"The Gigaset One provides consumers with a convergence solution to easily merge mobile phones with the wired home phone network," said Rod Keller, CEO of Gigaset Communications, USA. "Zarlink's voice interface technology is a key solution that enables the convergence of wired and wireless voice service, without sacrificing service quality or reliability for end-users. In addition, the low-power and easy-to-design solution has allowed us to quickly complete and introduce a quality product for this growing market."

Zarlink's VE880 VoicePort Series supports the broadest range of applications while providing the lowest total cost of ownership. The devices require approximately half as many external components compared to competing solutions, minimizing circuit board area, lowering external bill of material (BOM) costs and reducing manufacturing expenses. Furthermore, the devices typically use 50 percent less power than competing devices to help equipment manufacturers easily comply with emerging "green" environmental standards.

The VE880 chipset and the Gigaset One are on display at the Broadband World Forum Europe 2009 in Paris, France from September 7-9, 2009 (Zarlink booth#165). For more information on the VE880 VoicePort Series visit http://www.zarlink.com/zarlink/hs/residentialgateways_VE880%20VoicePort%20Series.htm. For more on Gigaset Communications visit http://www.gigaset.com.

About Zarlink Semiconductor

For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, optoelectronics and ultra low-power communications. For more information, visit www.zarlink.com.

About Gigaset Communications

Gigaset Communications is one of the world's largest manufacturers of cordless phones and the clear market leader in Europe for DECT phones. With its headquarters in Munich, the company develops, manufactures and distributes high-quality products under the brand Siemens Gigaset. Its portfolio includes fixed-network phones, Voice over IP devices, software solutions and home media products. The primary production site is in Bocholt, Germany, where the Gigaset products are manufactured under the most stringent quality and environmental standards. Gigaset Communications is a licensee of the Siemens trademark.

Further information can be found at www.gigaset.com

Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the following: our dependence on the successful development and market introduction of new products; our dependence on revenue generation from our legacy products in order to fund development of our new products; our ability to successfully integrate Legerity and any businesses acquired in the future; any potential undisclosed liabilities associated with the Legerity acquisition; our ability to operate profitably and generate positive cash flows in the future; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

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