Zarlink Semiconductor Inc.
TSX : ZL

Zarlink Semiconductor Inc.

June 23, 2009 09:30 ET

ZTE Corporation Chooses Zarlink's Timing Solution for Equipment Targeting Next-Generation Wireless Network Deployments

Demand for Zarlink's timing products grows as wireless operators invest in new technologies to efficiently deliver revenue-generating services over packet networks

OTTAWA, CANADA--(Marketwire - June 23, 2009) - Zarlink Semiconductor (TSX:ZL) announced that ZTE Corporation is using its recently introduced Timing over Packet (ToP) products in new equipment targeting next-generation wireless network deployments. Employing Zarlink's ToP technology, ZTE's products allow wireless network operators to deliver revenue-generating voice, multimedia, data and mobile services over less expensive packet networks, while preserving service quality and performance for end-users.

"Next-generation wireless network deployments are gaining momentum, with operators ramping investments in new packet infrastructures to support bandwidth-intense services and reduce operating costs," said Xu Ming, Vice President of ZTE Corporation. "Zarlink's ToP products are powerful solutions that solve critical network timing issues to enable high-quality services over packet networks. In addition, the easy-to-deploy, single-chip devices simplify and speed equipment design, allowing us to quickly introduce new products and gain share in a growing market."

"Our timing products are winning designs in new equipment targeting next-generation wireless network deployments, particularly in countries such as China where government stimulus packages are accelerating telecommunications infrastructure spending," said Kirk Mandy, President and CEO, Zarlink Semiconductor. "Long-standing relationships with leading manufacturers such as ZTE, and an expanded timing portfolio that addresses revenue and cost concerns for service providers, has strengthened our market position and will enable us to capitalize on emerging opportunities as carriers rollout new wireless networks."

Wireless network operators employing Zarlink's ToP technology can efficiently deliver revenue-generating voice, multimedia, data and mobile services over less expensive packet infrastructures. For example, Zarlink's ToP devices allow timing and synchronization information to be distributed between radio network controllers and remote base stations directly over a higher bandwidth Ethernet network. As a result, operators can replace expensive multiple leased lines traditionally used to backhaul voice traffic between cell sites and switching centers with a more affordable packet infrastructure.

The single-chip ToP devices integrate a range of features that simplify and speed network equipment design. Built on field-proven clock recovery technology, Zarlink's new ToP products are the industry's first devices to deliver the full range of synchronization and clock generation features required for timing and synchronization across Ethernet, IP and MPLS packet networks. The hybrid timing solutions simultaneously support both the IEEE 1588 and Synchronous Ethernet (ITU-T Recommendation G.8261) industry standard timing protocols. The devices deliver better than +/- 500 nanoseconds phase alignment over five network nodes using G.8261 test cases.

Availability and support

Zarlink's new ToP devices are in volume production. For more information visit the product profiles. Complete information on Zarlink's ToP products, including full data sheets and application notes, is available to qualified customers. To learn how to become a qualified customer, contact your local sales representative.

- ZL30310 Combined Synchronous Ethernet and IEEE1588 Network Synchronization: http://www.zarlink.com/zarlink/hs/82_ZL30310.htm

- ZL30312 Combined Synchronous Ethernet and IEEE1588 Network Synchronization: http://www.zarlink.com/zarlink/hs/82_ZL30312.htm

- ZL30314 Combined Synchronous Ethernet and IEEE1588 Network Synchronization: http://www.zarlink.com/zarlink/hs/82_ZL30314.htm

- ZL30316 Combined Synchronous Ethernet and IEEE1588 Timing over Packet Technology: http://www.zarlink.com/zarlink/hs/82_ZL30316.htm

- ZL30320 Combined Synchronous Ethernet and IEEE1588 Timing over Packet Technology: http://www.zarlink.com/zarlink/hs/82_ZL30320.htm

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.

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 ability to integrate any business, technologies, product lines or services that we have or will acquire; our dependence on revenue generation from our legacy products in order to fund development of our new products; current market conditions, including the lack of liquidity in the markets and economic slowdown, may increase our operating costs or reduce our revenue, thereby negatively impacting our operating results; our ability to operate profitably and generate positive cash flows in the future; the impact of the current economic crisis on our suppliers and customers and our ability to transfer parts to other suppliers; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; our substantial indebtedness could adversely affect our financial position; the cost and accounting implications of compliance with new accounting standards; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink Semiconductor Inc.

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