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

Zarlink Semiconductor Inc.

August 03, 2011 09:00 ET

Zarlink Licenses Exar Power(XR) Technology for Residential Gateway Platforms

OTTAWA, CANADA--(Marketwire - Aug. 3, 2011) - Zarlink Semiconductor (TSX:ZL) today announced it has entered into a product license agreement with Exar (NASDAQ:EXAR). This agreement significantly expands the available market for both Companies by delivering dynamic power management and monitoring products to residential gateways. Zarlink's low power voice solutions will be used with Exar's PowerXR technology to provide programmable solutions that will exceed energy efficiency requirements for residential gateways as outlined by the Home Gateway Initiative.

"Meeting worldwide energy efficiency standards is a key requirement for customers designing new residential gateway products," said Gary Tanner, President and CEO, Zarlink Semiconductor. "Zarlink and Exar are pleased to announce this collaborative partnership, which delivers the benefits of our market leading voice solutions together with Exar's digital power technology to our customers. We believe that this combination of products, expertise and customer relationships will benefit both companies as we target the fast-growing residential gateway market."

"Exar is pleased to be working with Zarlink to drive the adoption of digital power technology into the residential gateway market," said Pete Rodriguez, President and CEO, Exar. "Zarlink's leadership position in the rapidly growing residential gateway market, combined with the system benefits offered by Exar's PowerXR products, will deliver new features and capabilities not seen previously in this market."

"Digital power technology is revolutionizing the power market and growing at 45.2% CAGR," said Marijana Vukicevic principal analyst at IHS. "While the initial adoption of digital power has been targeting high-end applications, new cost-effective solutions demonstrate that digital power is a mainstream technology, meeting the demands of high volume commercial markets."

The Companies anticipate the first combined solutions will be available starting in September, with additional product details forthcoming.

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 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.

About Exar

Exar Corporation delivers highly differentiated silicon, software and subsystem solutions for industrial, consumer, and enterprise applications. For over 40 years, Exar's comprehensive knowledge of end-user markets along with the underlying analog/mixed signal and digital technologies has enabled innovative solutions that meet the needs of the evolving connected world. Exar's technology portfolio includes solutions for power management, serial interfaces, packet-based and TDM wireline communications, enterprise storage optimization, and data security. Exar has locations worldwide providing real-time customer support to drive rapid product development. For more information about Exar, visit: www.exar.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 and the applicable regulations of the Canadian Securities Administrators. 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; significant fluctuations in foreign exchange rates may adversely impact our results of operations; 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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