SMSC Announces Agreement to Acquire Tallika

HAUPPAUGE, N.Y.--Jul. 9, 2009-- SMSC (NASDAQ: SMSC) today announced that it has signed an agreement to acquire Tallika Corporation (Tallika), a team of approximately 50 highly skilled engineers located in design centers in Chennai, India and Phoenix, Arizona. This team will bring to SMSC a broad set of capabilities, including SoC and software development. The Tallika and SMSC teams have previously worked together on various projects including transceiver development, chip design and pre-silicon verification. SMSC has agreed to pay approximately $3.4 million to purchase Tallika. The acquisition is expected to be non-dilutive and to close in August 2009.

“Tallika will play a significant role in accelerating our product roadmaps and brings a breadth of expertise in a mix of engineering disciplines including hardware, software, systems, digital design and verification/validation,” said Christine King, President & Chief Executive Officer of SMSC. “Adding this talented group of engineers to our strong design expertise in the U.S. should expand our opportunities for market share growth, particularly with USB 3.0 and other connectivity solutions.”

“We are excited about the opportunity to join the talented engineers at SMSC and look ahead to many growth opportunities,” said Hemi Bhatnagar, President & CEO of Tallika Corporation. “Coupling our portfolio of connectivity IP and design expertise with SMSC’s broad array of applications knowledge in the consumer, PC and automotive industries is a natural fit. Together, we expect to drive greater expansion of SMSC’s product roadmaps.”

About SMSC:

Many of the world’s most successful global technology companies rely upon SMSC as a go-to resource for semiconductor system solutions that span analog, digital and mixed-signal technologies. Leveraging substantial intellectual property, integration expertise and a comprehensive global infrastructure, SMSC solves design challenges and delivers performance, space, cost and time-to-market advantages to its customers. SMSC’s application focus targets key vertical markets including consumer electronics, automotive infotainment, PC and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal embedded controllers, non-PCI Ethernet, ARCNET, MOST® and Hi-Speed USB.