Zilog Partners With ARM for New 32-Bit Microcontroller Solutions

Company Eyes New Growth Opportunities: Extends Roadmap to Offer Broadest Range of 8-, 16-, and 32-Bit MCU-Based Embedded Solutions for Wide Array of Applications

SAN JOSE, Calif. -- May 8, 2008 -- Zilog, Inc. a leading supplier of 8-, 16- and 32-bit embedded Flash microcontrollers, and universal remote control ICs and ARM® core-based secured transaction solutions, today announced it has extended its microcontroller (MCU) market strategy by licensing the ARM® Cortex(TM)-M3 processor to develop a new family of industry leading 32-bit based solutions. The agreement accelerates the roll out of Zilog's new family of highly integrated, feature-rich, 32-bit solutions for embedded and portable applications that demand high performance, small form factor and low power consumption.

Zilog has long been a leading supplier of 8- and 16-bit MCU system-on-chip (SoC) solutions. Adding a new family of 32-bit MCU-based SoC solutions will greatly expand the reach of its product portfolio. It will now provide design engineers more choice and flexibility at the right price points for the broadest possible set of embedded applications.

"For 20 plus years, we have provided cost-efficient 8-bit solutions for basic embedded applications. Our highly integrated, feature rich 8-bit SoC solutions have always focused on providing the design engineering community with critical bill of materials cost advantages and design flexibility," commented Darin G. Billerbeck, president & CEO of Zilog. "Now, with the addition of our new 32-bit MCU-based solutions to our product portfolio, we can expeditiously increase design flexibility, offering design engineers highly integrated, feature rich, 32-bit MCU-based solutions that provide class leading performance and an advantageous value proposition."

"The 32-bit microcontroller marketplace is rapidly growing around the Cortex-M3 processor to provide a fast and reliable path to market leadership," said Eric Schorn, vice president of marketing, Processor Division, ARM. "Further, our Partners are breaking through the traditional segmentation that divides the market into separate 8-, 16- and 32-bit categories and instead are offering a seamless range of technology optimized for the widest range of applications."

Zilog is no stranger to ARM. Three years ago Zilog licensed the ARM9(TM) microprocessor family for its new Zatara(TM) family of 32-bit Applications Specific Standard Products (ASSP) that targeted the rapidly growing secure transactions/Point-of-Sale market. Today, Zilog's fully integrated, single chip Zatara(TM) solution is a "best-in-class integrated feature set", with the highest level of PCI-PED security and performance in the POS industry today. Zilog's Zatara(TM) solution is a key driver for next-generation, POS payment systems where it now has a technological edge and market leadership. The company expects to achieve the same high level of success in a wide array of products utilizing the ARM Cortex-M3 processor.

"We have a strong, positive and successful relationship with ARM, and we are delighted to report that we are already seeing immediate success with our new ARM processor-based, 32-bit MCU solutions where the full potential and range of our new 8-bit to 32-bit MCU portfolio can be clearly seen in the context of our remote control business," stated Keith Bladen, vice president of marketing and GM for the 32-bit ASSP, Secure Transaction Group, Zilog. "For example, in the universal remote control market where we are a market leader, our 8-bit Crimzon® UIR and Flash-based solutions lead in providing cost-effective solutions for basic remote controls, our Z8 Encore!® 8-bit solutions lead in offering efficient and cost effective embedded solutions for mid-range remote controls, and now our new ARM 32-bit MCU based solutions will lead by offering a high performance, highly integrated feature set that supports the needs of next-generation high-end remote control applications and the rapidly growing whole house applications market."

According to Bladen, "The discussions we have had with both our internal engineering teams and with the customer community have been very positive, and we expect to quickly expand our leadership in this arena to the higher-end applications where performance and size coupled with lower power are simply crucial."

Zilog's New 32-Bit-SoCs

Zilog will develop a new set of 32-bit MCU-based SoCs that build on its pre-existing, and deep knowledge base of ARM processors. It will provide differentiated ASSPs and MCU based solutions by building the "Zilog value-add" around the low power capabilities and highly configurable nature of Cortex-M3 processor, taking advantage of its ability to apply technology to key targeted applications to achieve clear technology differentiation at the right value proposition. "Our comfort level and experience with ARM processor-based solutions, our MCU/ASSP leadership, and the standardized development environment make the partnership and the ARM Cortex-M3 processor a perfect solution for MCU applications," stated Billberbeck.

About the Cortex-M3 Processor

The ARM Cortex(TM)-M3 32-bit RISC processor was specifically developed to provide a high-performance, low-cost platform for a broad range of applications including microcontrollers, automotive body systems, industrial control systems and wireless networking. The Cortex-M3 processor provides outstanding computational performance and exceptional system response to interrupts while meeting low cost requirements through small core footprint, industry leading code density enabling smaller memories, reduced pin count and low power consumption.

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-Sale (POS) 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 http://www.zilog.com.