Zarlink Semiconductor Inc.
TSX : ZL

Zarlink Semiconductor Inc.

September 03, 2009 13:42 ET

Zarlink and Tollgrade Deliver Innovative Test Solution for Next Generation Communications Networks

OTTAWA, ONTARIO and PITTSBURGH, PENNSYLVANIA--(Marketwire - Sept. 3, 2009) -

- Integrated solution allows telecom carriers to remotely monitor access lines to improve service reliability and reduce operating costs

- To be demonstrated at Broadband World Forum (Zarlink booth#165 and Tollgrade booth#575)

Zarlink Semiconductor Inc. (TSX:ZL), a market leader in access infrastructure and residential gateway voice solutions, and Tollgrade Communications, Inc. (NASDAQ:TLGD), a leading supplier of network service assurance solutions for the telecom industry, today announced the successful interoperability of a collaborative line test solution designed to help telecom carriers improve triple play service reliability while reducing operating costs. This new solution follows a previous collaboration that linked Zarlink's SLIC-based line test LineCare™ software solution with the Tollgrade service assurance platform.

Combining the embedded signaling and measurement capabilities of Zarlink's VoiceEdge™ VE792 Next Generation Carrier Chipset (NGCC) with the test analysis and plain-language actionable results provided by Tollgrade's recently introduced Stratum™ service assurance platform, the joint solution will allow voice access equipment manufacturers to easily integrate a highly interoperable solution with equivalent performance to a traditional test head. This feature will be available with the first release of Stratum, which is expected to be generally available by the end of the year.

With this new line test solution, carriers will be able to routinely and remotely monitor and test access lines to detect and repair issues before a customer experiences a problem. The remote functionality serves to shorten issue response time and reduce costly truck rolls, which can result in dramatically lower customer churn rates and operating expenses.

"Carriers are demanding a new class of access equipment that provides highly flexible in-field operational testing to meet performance and cost requirements," said Shahin Sadeghi, segment marketing manager for carrier-class voice products with Zarlink. "Our continuing collaboration with Tollgrade has resulted in a unique total system solution, combining the VE792 NGCC with Tollgrade's Stratum service assurance platform, providing state-of-the-art line test capabilities to significantly reduce network test costs for carriers."

Tollgrade testing solutions, embedded in over 250 million access lines worldwide, supports qualification, provisioning and service assurance processes for leading service providers.

"With this capability, service providers will immediately have uniform test performance and network coverage as they begin their deployments of next generation access nodes," said Chris Barton, executive director of technical marketing at Tollgrade.

Demonstration at Broadband World Forum

Zarlink (booth#165) and Tollgrade (booth#575) will be demonstrating their joint test solution for next-generation communication networks at Broadband World Forum Europe 2009 (September 7-9 in Paris, France). Please contact your Tollgrade or Zarlink representative for additional information or to schedule a meeting.

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.

About Tollgrade

Tollgrade Communications, Inc. is a leading provider of network service assurance products and services for centralized test systems around the world. Tollgrade designs, engineers, markets and supports centralized test systems, test access and next generation network assurance technologies. Tollgrade's customers range from the top telecom providers, to numerous independent telecom and broadband providers around the world. Tollgrade's network testing, measurement and monitoring solutions support the infrastructure of telecom companies, as well as for power distribution companies. For more information, visit Tollgrade's web site at www.tollgrade.com.

Forward-Looking Statements

The foregoing release contains "forward-looking statements" regarding future events or results within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements concerning Tollgrade's current expectations regarding the expected availability date for new products and our ability to introduce next generation network technologies into existing customer infrastructures and to execute its strategies. Tollgrade cautions readers that such "forward-looking statements" are, in fact, predictions that are subject to risks and uncertainties and that actual events or results may differ materially from those anticipated events or results expressed or implied by such forward-looking statements. Tollgrade disclaims any current intention to update its "forward-looking statements," and the estimates and assumptions within them, at any time or for any reason. In particular, the following factors, among others, could cause actual events or results to differ materially from those contained in the "forward-looking statements": (a) the inability to gain market acceptance of our new products within the customer base; (b) the inability to complete or possible delays in completing certain research and development efforts that may be required for product release and general availability; (C) our dependence on a limited number of third party manufacturers to manufacture certain aspects of the products we sell, including the products which are the subject of this release; and (d) the inability to make changes in business strategy, development plans and product offerings to respond to the needs of the significantly changing telecommunications markets and network technologies.

Other factors that could cause actual events or results to differ materially from those contained in the "forward-looking statements" are included in the Company's filings with the U.S. Securities and Exchange Commission (the "SEC") including, but not limited to, the Company's Form 10-K for the year ended December 31, 2008 and any subsequently filed reports. All documents are also available through the SEC's Electronic Data Gathering Analysis and Retrieval system at www.sec.gov or from the Company's website at www.tollgrade.com.

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

Tollgrade, Stratum and the Tollgrade Communications, Inc. logo are trademarks of Tollgrade Communications, Inc.

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