Zarlink Semiconductor Inc.
TSX : ZL
OTC Bulletin Board : ZARLF

Zarlink Semiconductor Inc.

May 03, 2011 09:30 ET

Zarlink Extends Relationship with CODICO to Target Growth Opportunities in Russia and Eastern Europe

Zarlink to demonstrate its latest line circuit solutions for voice-over-broadband deployments at SVIAZ EXPO COMM 2011 in Moscow (booth 83A10A)

OTTAWA, CANADA--(Marketwire - May 3, 2011) - Zarlink Semiconductor (TSX:ZL) today announced that it is extending its relationship with CODICO GmbH, a distributor with extensive product marketing and field applications expertise in Russia and Eastern Europe, to target new market opportunities for the Company's line circuit products. Zarlink is the world's leading provider of line circuit products enabling high-quality voice services over fiber, cable and digital subscriber line (DSL) networks.

"We see a very strong growth opportunity for our line circuit products in countries such as Russia, where governments, service providers and the private sector are increasing their investments in broadband networks," said David Boikess, Vice President of Worldwide Sales, Zarlink Semiconductor. "Today, there is significant design activity for our line circuit products as carriers in fast-growing economies, including China, India and Brazil, deploy new access and residential equipment to enable high-quality voice services over broadband networks. Strengthening our relationship with CODICO will help increase our exposure with both local and global equipment manufacturers targeting similar network deployments in Russia and Eastern Europe."

The telecom infrastructure in Russia has undergone a significant transformation over the past decade, driven primarily by government initiatives to deliver broadband services across the country. The Ministry of Telecommunications of the Russian Federation has said that the broadband penetration rate in the country should reach 60 percent by 2015, up from 26 percent in 2009, and could increase to 90-95 percent by 2020.

"We have an extensive network of sales, marketing and applications engineering expertise to help companies partner with local and international manufacturers now designing equipment for the fast-growing broadband market in Eastern Europe,'" said Michael Froemel, Vice President of Sales, CODICO. "We are excited to support Zarlink's efforts to grow its line circuit business and expand its customer base."

Zarlink will be demonstrating its latest line circuit products for access and residential equipment at SVIAZ EXPO COMM 2011 in Moscow, May 10-13, 2011 with CODICO at booth 83A10A.

Media Note: Zarlink senior executives will be available at SVIAZ EXPO COMM 2011 to discuss the Company's products, expertise and marketing efforts as it increases its focus on opportunities in the Russian market. Please contact Ed Goffin (edward.goffin@zarlink.com) to schedule an interview.

About Zarlink Semiconductor

Zarlink Semiconductor delivers world-leading, mixed-signal chip technologies for a broad range of communication and medical applications. The Company's core capabilities include network timing solutions that manage time-sensitive communication applications over wireless and wired networks, line circuits supporting high-quality voice services over cable and broadband connections, and ultra low-power radios enabling new wireless medical devices and therapies. Serving the world's largest original equipment manufacturers, Zarlink's highly integrated chip solutions help customers simplify design, lower costs and reach market quickly. 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 Canadian Securities 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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