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SMSC Delivers Broad Portfolio of Products Addressing Portability and Convergence of Digital Content in the Home and Office

Posted on: Tuesday, 7 September 2004, 06:00 CDT

INTEL DEVELOPER FORUM-- Company Demonstrates Product Diversification as it Builds Stronger Presence in Consumer and Embedded Applications

With the goal of enabling consumers to enjoy digital content anywhere, anytime and on any device, SMSC (NASDAQ: SMSC), a leading semiconductor Company delivering innovative system solutions spanning analog, digital and mixed-signal technologies, today unveiled at the Intel Developer Forum in San Francisco one of the industry's most comprehensive lines of USB2.0, mobile super Input/Output (I/O) and embedded Ethernet controllers for a wide range of consumer and commercial connectivity solutions.

With this announcement, SMSC delivers the USB2503 and USB2507, the industry's first USB2.0 3-port and 7-port hub controllers with SMSC's innovative MultiTRAK(TM) multiple Transaction Translator (Multi-TT) technology, as well as the USB2504, a second generation 4-port hub controller; the USB2228, a controller for 12-in-1 flash card readers; the USB3250, a second generation USB2.0 physical layer transceiver (PHY) device; the SIO1000, a second generation consumer InfraRed (IR) I/O controller; plus the Company's LAN9118, a second generation 10/100 Non-PCI Ethernet controller.

"The proliferation of digital consumer electronic devices is creating a need for a vast number of applications to interconnect various computing and consumer entertainment products, whether through flash cards, hubs, remotely or over a network," said Steve Nelson, Vice President of Marketing - Connectivity Solutions at SMSC. "SMSC is driving cross-equipment connection in delivering a broad set of flexible, industry-first and second generation solutions that can more easily be implemented at a lower cost. This in turn drives performance enhancements as it facilitates the convergence between home and portable entertainment devices."

"The industry is making great strides toward developing interoperable computing and consumer electronics devices, bringing the power of the PC to the digital home and allowing end users the ability to create, edit, store and stream their music, videos and photos," said Jeff Ravencraft, USB Implementers Forum Chairman and Intel Technology Strategist. "With its focus on USB 2.0 and non-PCI embedded Ethernet technology, SMSC is showing a commitment to connecting consumers in the digital home."

To enhance end-user experience in areas such as networked PCs, mobile computing and consumer applications in the digital home, SMSC's solutions allow designers to enable portability and connectivity, which simplifies the way consumers share and enjoy digital content such as music, photos, data and video. With the introduction of today's products, SMSC addresses the critical issues of system performance and cost. Because SMSC understands the drive to connect devices such as PCs, set-top boxes, game consoles, MP3 players, DVDs, cell phones, digital cameras and TVs, the Company has developed a portfolio of ICs that reduce design time and component costs so designers can get their products to market quickly and cost-effectively, without sacrificing speed, power or board area.

Power and Performance

With the advent of digital technology being shared between many consumer devices, the speed at which data moves is critical. And, based on its innovative architectures such as MultiTRAK for its high-performance USB2.0 hub controllers, SMSC is better able to address the level of system performance and cost. SMSC's MultiTRAK technology dedicates a pipeline for every downstream full- and low-speed device connecting into a hub, enabling designers to implement, and end users to experience, up to a 110 percent boost in full speed data throughput.

While moving data effectively within a device is important, moving that data through a network is equally important. Ethernet is becoming an attractive solution for providing high-speed audio and video streaming in the home because of its ubiquity, user familiarity and cost-effectiveness. With its large memory buffers containing fine granularity, fast bus cycle times and built-in support for flow control, SMSC's LAN9118 embedded Ethernet controller can support extremely high data rates. As a result, the Company is delivering a high-throughput, low-cost capability to designers of a broad range of consumer electronics devices such as set-top boxes, digital video recorders and digital TVs.

Through its expertise in analog and mixed-signal design, SMSC can better implement a power-efficient analog USB2.0 transceiver design that meets the most stringent system environments. The Company's standalone USB2.0 PHY is the industry's first to be built on a 0.18-micron CMOS process, enabling designers to take advantage of up to a 60 percent power reduction for mobile computing and other portable devices. To further address the issue of power, as well as cost, SMSC's SIO1000 provides infrared mobility and integration into a single multimedia-enabled PC environment. This gives designers the lowest cost, lowest power remote control solution, while enabling end-products that are easy to use.

Advanced Integration

Because consumers demand more from the products they purchase at increasingly lower costs, today's connected PCs and electronic devices must support rich media and be easy to use. The SIO1000 demonstrates SMSC's commitment to driving these benefits by integrating a consumer IR transceiver into a PCs super I/O controller. The SMSC SIO1000 adds full-featured consumer electronics remote control functionality to the system, allowing the removal of the expensive external "CIR dongle" module and enabling low-cost media PC solutions.

Also indicative of its ability to deliver area and cost savings to its customers, SMSC is integrating more and more onto a single chip, while leveraging its leadership position in card reader formats. With its new USB2228 card reader controller, SMSC is enabling robust flash card compatibility with the lowest power consumption while bringing new levels of integration and cost reductions to better meet consumer demands. Specifically, the USB2228 offers bill-of-material cost improvements through the integration of three card-power MOSFETS for cost savings of up to $0.60 per chip. -0- *T Specification, Pricing and Availability Connectivity Product Line ---------------------------------------------------------------------- USB2503 USB2504 USB2507 USB2228 USB2.0 USB3250 USB2.0 USB2.0 USB2.0 Hub USB2.0 Hub Flash Media Card UTMI PHY Hub Controller Controller Reader Controller Controller ---------------------------------------------------------------------- Three Four Seven Complete format USB-IF "Hi- downstream downstream downstream support with Speed" USB2.0 ports USB2.0 USB2.0 SmartMedia(TM) certified to ports ports SM), Memory Stick USB2.0 PRO (MSPRO), electrical Memory Stick (MS), specification High Speed Memory Stick (HSMS), Secure Digital(SD), MultiMediaCard(TM) (MMC), NAND Flash, Compact Flash(TM) I and II (CF) and CF form-factor ATA hard drives (Microdrive) ---------------------------------------------------------------------- Three Four Seven Low power at 62mA Supports Transaction Transaction Transaction 480Mbps (HS) Translators Translators Translators and 12Mbps utilizing utilizing utilizing (FS) serial SMSC's SMSC's SMSC's data rates MultiTRAK MultiTRAK MultiTRAK technology technology technology ---------------------------------------------------------------------- 3.3 Volt (V) 3.3V I/O 3.3V I/O Supports USB bulk Low HS I/O with 5V with 5V with 5V only mass storage current input input input compliant consumption tolerance tolerance tolerance bootable BIOS at 72mA ---------------------------------------------------------------------- 48-pin QFN 64-pin TQFP 80-pin QFN 128-pin TQFP & 56-pin QFN 100-pin TQFP ---------------------------------------------------------------------- Samples Shipping Samples Sampling in Shipping available now available calendar fourth now now, in October, quarter production production volumes in volumes in November December ---------------------------------------------------------------------- $3.00 per $4.00 per $7.00 per $4.00 per unit $2.00 per unit (U.S. unit (U.S. unit (U.S. (U.S. list price) unit (U.S. list price) list price) list price) in 10K quantities list price) in 10K in 10K in 10K in 10K quantities quantities quantities quantities ---------------------------------------------------------------------- Mobile I/O Product Embedded Ethernet Product ---------------------------------- --------------------------------- SIO 1000 Controller LAN9118 10/100 Non-PCI Ethernet Controller ---------------------------------- --------------------------------- Multi-mode parallel port with Supports high data rates with no ChiProtect(TM) circuitry and packet loss serial port support ---------------------------------- --------------------------------- LPC Bus Host Interface Simple SRAM system interface ---------------------------------- --------------------------------- IrCC 2.0 core for IrDA Support Built in Support for Flow Control and Wake on LAN ---------------------------------- --------------------------------- CIrCC2 with WAKE-UP Driver support for multiple processors & operating systems ---------------------------------- --------------------------------- Samples are available now with Samples are available now with production quantities available production quantities available in the fourth quarter of this in the first quarter of 2005. year ---------------------------------- --------------------------------- Pricing will start at $3.95 (U.S. Pricing is less than $8.00 (U.S. list price) in 10K quantities list price) for volume quantities ---------------------------------- of 10K units --------------------------------- *T

About SMSC

Many of the world's most successful global technology companies rely upon SMSC as a go-to resource for integrated circuits and semiconductor system solutions that span analog, digital and mixed-signal technologies. SMSC delivers products that solve the challenges of space, cost and time-to-market for high-speed computing, connectivity and embedded networking applications.

SMSC addresses computing, communications and consumer electronics markets through world-leading positions in Input/Output and Non-PCI Ethernet products; innovations in USB2.0 and other high-speed serial solutions; and integrated networking products employed in a broad range of applications. Leveraging substantial intellectual property and a comprehensive global infrastructure, SMSC thrives at the intersection of silicon, software and customized OEM applications. SMSC is based in Hauppauge, New York with operations in North America, Taiwan, Japan, Korea, China and Europe. Engineering design centers are located in Arizona, New York and Texas. Additional information is available at www.smsc.com.

Forward Looking Statements:

Except for historical information contained herein, the matters discussed in this announcement are forward-looking statements about expected future events and financial and operating results that involve risks and uncertainties. These include the timely development and market acceptance of new products; the impact of competitive products and pricing; the effect of changing economic conditions in domestic and international markets; changes in customer order patterns, including loss of key customers, order cancellations or reduced bookings; and excess or obsolete inventory and variations in inventory valuation, among others. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations and may not reflect the potential impact of any future acquisitions, mergers or divestitures.

SMSC competes in the semiconductor industry, which has historically been characterized by intense competition, rapid technological change, cyclical market patterns, price erosion and periods of mismatched supply and demand. In addition, sales of many of the Company's products depend largely on sales of personal computers and peripheral devices, and reductions in the rate of growth of the PC and Embedded markets could adversely affect its operating results. SMSC conducts business outside the United States and is subject to tariff and import regulations and currency fluctuations, which may have an effect on its business. All forward-looking statements speak only as of the date hereof and are based upon the information available to SMSC at this time. Such information is subject to change, and the Company may not necessarily inform, or be required to inform, investors of such changes. These and other risks and uncertainties, including potential liability resulting from pending or future litigation, are detailed from time to time in the Company's reports filed with the SEC. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Other Factors That May Affect Future Operating Results" for a more complete discussion of these and other risks and uncertainties.

SMSC is a registered trademark of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.

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