Zilog(R) Integrates Real-Time Virtualization(TM) Technology From VirtualLogix(TM) to Create Potent 32-Bit Security Solution for Point-Of-Sale Market

Companies Demonstrate New Zatara(TM) Platform Based on Virtualization Technology During Cartes Tradeshow in Paris

PARIS -- Nov. 14, 2007 -- Zilog (Nasdaq: ZILG), a leading provider of 8, 16 and 32-bit embedded flash microcontrollers, universal remote control solutions and ARM(R) core based, system-on-chip (SoC) ASSPs solutions for the secure transaction market, today unveiled two new developments that significantly advance security and performance for makers of point-of-sale (POS) payment systems. Here, at the opening of the annual Cartes Smart Payment Card and Secure Identification tradeshow, company officials formally announced a partnership with Real-Time Virtualization(TM) leader VirtualLogix(TM), and outlined a new innovative packaging technology development that will further strengthen the company's lead in the global electronic funds transfer (EFT) and POS marketplace. Late last month, the company announced the industry's first PCI PED pre-certified & EMV compliant, single-chip solution for next-generation POS systems with the roll out of its 32-bit, high-security Zatara(TM) family.

Improving security has become a key requirement for next-generation secure transaction systems, as the banking and retail industries, among others, continue to grapple with the dramatic acceleration in the level of fraudulent activity and attempts to compromise security systems at banks, retailers, restaurants, gas stations and other establishments where credit and debit card financial transactions occur. Zilog is a leading provider of security solutions to the secure transaction market. The company collaborates closely with customers, partners and financial service industries to combat these types of security breaches.

With its announcement here today, Zilog is integrating VirtualLogix's(TM) Real-Time Virtualization technology to achieve greater systems efficiency, security, and performance on its new 32-bit single-chip Zatara(TM) platform. VirtualLogix(TM) VLX allows multiple operating systems (called guest OSs) to operate at the same time on the same single core or multi core-processor. The operating systems are independent of each other, but coexist through efficient communication interfaces. The technology relies on a partitioning of resources between the guest OSs and on the virtualization of the resources that cannot be partitioned.

Zilog also reported a new packaging technology breakthrough called 'secure module', that integrates memory, logic, and system level security to further enhance security and performance for certain specific secure transactions situations. It plans to begin demonstrating this development in the New Year, and senior officials will be available to discuss these innovations during Cartes.

"Market leadership in secure transactions means aggressively finding ways to continually surpass security and performance barriers; this challenge is an ongoing mission for our secure transaction group," stated Darin G. Billerbeck, president and CEO of Zilog. "Our strategic agreement with VirtualLogix(TM), and the innovations we have achieved, meshes our new highly-integrated, single chip, PCI PED pre-certified & EMV compliant 32-Bit Zatara(TM) ASSP with real-time VLX virtualization technology to help create a more robust and secure environment for secure transactions."

"We are pleased to be selected by Zilog to provide the virtualization technology for the Zatara(TM) ASSP. Built on a secure, fault-tolerant architecture, VirtualLogix's VLX virtualization software enables secure transactions while delivering the cost-savings benefits and hardware efficiencies of real-time virtualization," said Peter Richards, VirtualLogix(TM) CEO. "Working together with Zilog has resulted in an innovative solution for next-generation POS equipment. The Zatara(TM) ASSP provides the highest level of security at a cost-effective price point."

About Zatara(TM)

Zatara(TM) is a fully-integrated, system-on-chip ASSP that offers four key advantages over the conventional two-chip solutions that use a general processor and a secondary security co-processor. These include the highest level of security and intrusion protection, lower overall system cost, a simplified design that achieves better performance in a smaller footprint and quicker time-to-market. Zatara(TM) leverages Zilog's expansive relationships to offer a rich feature set that includes an ARM 9(TM) core, security subsystem, magnetic card reader (MCR) SmartCard, controllers, integrated modem, LCD monochrome controller, 76 General Purpose Input/Output and pin muxing (16 dedicated), DMA, SDRAM, interrupt controllers and power management features. The Zatara(TM) ASSP Series is available exclusively from Zilog. For more information, just visit the company's website at http://www.zilog.com.

About Zilog:

Founded in 1974, Zilog is a global supplier of 8, 16 and 32-bit microcontroller and microprocessor "system-on-a-chip" (SoC) solutions that allow design engineers the freedom and creativity required for continued innovation in embedded design. The company won international acclaim for designing one of the first architectures in the microprocessors and microcontrollers industry. Today, Zilog designs, develops and markets a broad portfolio of devices for embedded control and communication applications used in consumer electronics, home appliances, security systems, point of sales terminals, personal computer peripherals, as well as industrial and automotive applications. Zilog is headquartered in San Jose, California, and employs approximately 500 people worldwide with sales offices throughout Asia, Europe and North America. For more information about Zilog and its products, visit the Company's website at: http://www.zilog.com.