Elonics Announces Manufacturing Agreement with IBM

January 3, 2006 -- Elonics today announced that IBM Microelectronics will manufacture Elonics' next generation wireless semiconductor products for UWB and digital consumer applications. Elonics will use IBM’s advanced 130nm and 90nm RF CMOS processes to produce their highly-integrated wireless baseband and RF transceiver products.

"We are developing challenging products that require access to leading edge RF CMOS processes. The technology capability and breadth of IBM’s foundry offering was a major decision in choosing IBM.” said David Srodzinski CEO of Elonics “We expect to tape out our first design on the 130nm RF process in the next few weeks and we have started designing our next product on 90nm RF CMOS for tape out in the middle of 2006.”

”Highly integrated wireless design is driven by innovative clients taking advantage of some of the most advanced RF design kits and process technologies in the industry,” said David French, Wireless Foundry Sales Executive, IBM Systems & Technology Group. “We look forward to working with Elonics as their 130nm and 90nm RF CMOS foundry vendor for their next generation wireless products.“

About Elonics

Elonics is a semiconductor design consultancy, specialising in developing analogue/mixed-signal silicon devices. It has a growing client list which includes some of the world’s leading semiconductor companies. The company was founded in September 2003 and is based in Livingston, Scotland. It is a wholly independent, privately owned company with no external equity interests. Website: www.elonics.com