Zarlink Previews Industry's First SoC (System on a Chip) Architecture for Terrestrial Digital TV Products

First SoC architecture to integrate terrestrial demodulators, MPEG-2 video/audio, and high-speed processor for terrestrial DTV (digital television) products

SWINDON, UK, May 21 - Zarlink Semiconductor (NYSE/TSE:ZL) today announced that it is previewing the industry's first SoC architecture for terrestrial DTV consumer products with global electronics manufacturers. Zarlink's scaleable SoC architecture integrates six external components - including, for the first time, digital terrestrial demodulators - into one powerful digital TV processor. This innovative architecture will allow customers to cut the size, cost and time-to-market of high performance DTV products.

"Zarlink's highly-integrated digital TV processor combines impressive performance specifications with cost effectiveness - two important factors for the success of our next-generation of terrestrial digital television products," said Sibel Cedetas, manager, Digital and Display Electronic Design and Development, Beko Elektronik A.S of Turkey. Beko Elektronik is the lead customer for Zarlink's new DTV processor. As the fourth-largest television manufacturer in Europe, Beko is projecting volume of more than four million TV sets in 2002, up nearly 50 percent from 2001.

"Utilizing Zarlink's SoC architecture, we are designing a range of DTV devices that customers can use to set price and performance benchmarks in the DTV market, from entry-level digital TV adapters, to integrated digital TVs and fully-featured media centers," said Paul Fellows, product line manager, DTV SoC, Zarlink Semiconductor.

Emerging global market for Digital Terrestrial TV

Zarlink's DTV architecture is optimized for markets in the UK, Europe, and other countries that have adopted the DVB-T (digital video broadcasting- terrestrial) standard defined by ETSI (European Telecommunications Standards Institute). Global acceptance of the DVB-T standard, coupled with Europe's decision to switch off analog TV transmissions starting in 2006, and increasing number of "free-to-air" digital channels - is fuelling consumer demand for DVB-T-compliant consumer electronics products.

"The DVB-T standard now covers most of the world, which makes the market very significant," said Paul O'Donovan, senior analyst at Gartner Dataquest, UK. "We are forecasting that worldwide there will be half a billion households receiving free-to-air digital terrestrial broadcasts within the next five to 10 years."

To speed consumer acceptance of digital terrestrial services, consumer electronics companies must deliver compact, affordable and exciting terrestrial DTV products. For example, manufacturers are exploiting hard disk-drive technology to create Media Center products with compelling features such as multi-channel record and playback, real-time pause and resume, slow motion and browse, MP3 audio playback and high quality digital sound.

Zarlink architecture supports mass market requirements

Previewing its SoC architecture with customers will ensure that Zarlink's chip designs support mass market requirements. Zarlink's goals are to:

• develop a scaleable architecture to support a family of devices for low cost, entry level products to fully featured, twin channel configurations,
• deliver a high level of integration, permitting very small form factor equipment and reducing system component count,
• operate at low power (less than 1.5Watts fully operational), with comprehensive power management to comply with European Code of Conduct on Energy Efficiency,
• Utilize a high performance CPU to offer highly responsive MHEG-5 and DVB-MHP for digital teletext and interactive TV applications,
• support industry standard operating systems and middle-ware technology,
• deliver a high performance processor that supports technology convergence - DVD playback, hard disk drive, DVD playback/recording and Internet connectivity.

About Zarlink Semiconductor

Zarlink employs its formidable analog, digital and mixed-signal capabilities to offer the most compelling products for wired, wireless and optical connectivity markets and ultra low-power medical applications. For more information, visit www.zarlink.com.

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 risks discussed in documents filed by the Company with the Securities and Exchange Commission. Investors are encouraged to consider the risks detailed in those filings.

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