Zarlink Targets Cable TV Market With New Demodulator

r> - Expands DTV front-end portfolio with small footprint ZLO10210 chip OTTAWA, Nov. 8 /PRNewswire-FirstCall/ - Zarlink Semiconductor (NYSE/TSX:ZL) today announced that it is now shipping the ZL10210 QAM (Quadrature Amplitude Modulation) cable demodulator chip. Designed to comply with the digital cable standards that predominate outside North America, the device targets the world's fastest-growing markets, particularly China, where cable TV already reaches an estimated 200 million households. Zarlink is a leading supplier of satellite and terrestrial demodulators in China, with seven million units shipped in 2004. Integrating IF (intermediate frequency) filtering and fast channel blind-scan capability with the industry's lowest power consumption and smallest package, the ZL10210 maintains the superior performance and ease-of-use of Zarlink's front-end solutions for terrestrial and satellite systems. The company is preparing a series of cable front-end reference designs based on the ZL10210 demodulator and various can tuners, to assist customers in developing their cable DTV equipment. "Customers who rely on the performance of our front-end solutions for satellite and terrestrial systems will recognize the same benefits in our new cable demodulator," said Bob Ferreira, DTV front-end product line director, Zarlink Semiconductor. "In the cable TV market, where rapid development is critical, our reference designs and customer service offer an invaluable technical resource." Flexible, easy-to-program design Zarlink's ZL10210 demodulator complies with DVB-C (Digital Video Broadcast-Cable) EN300429 and ITU-T (International Telecommunications Union- Telecommunications) J.83 annex a/c standards, which predominate globally outside North America. The chip is housed in a 7x7 mm (millimeter), 64-pin QFP (quad flat package), approximately half the size of most competing devices. The ZL10210 device offers best-in-class power consumption at less than 300 mW (milliwatts). The chip handles symbol rates up to 9 Mbaud and, like all Zarlink demodulators, features a high-speed blind scan and auto re-acquisition function built on a hardware-based state machine that automatically scans the entire broadcast band. The ZL10210 demodulator includes additional digital IF filtering that allows the full symbol rate range to be supported with a single 8 MHz (megahertz) external SAW (surface acoustic wave) filter. The chip integrates an RF signal strength indicator, allowing download and reading of the TV signal strength directly at the receiver box. Reference design speeds time-to-market Zarlink works with module and STB (set-top box) manufacturers to offer system designers a choice of complete front-end implementations. A selection of reference designs based on the ZL10210 is under development, including design documentation, PC GUI (graphical user interface) and driver source code. These will allow STB manufacturers to easily design the Zarlink demodulator directly onto their motherboards, in combination with their preferred tuner option. Intel to acquire Zarlink's RF Front-End Consumer Business On October 7, Zarlink Semiconductor and its UK subsidiary, Zarlink Semiconductor Limited, signed an agreement to sell the assets of their RF (radio frequency) Front-End Consumer Business to Intel Corporation, through its wholly-owned subsidiary Intel Corporation (UK) Limited, for approximately US$68 million in cash and US$2 million in other consideration. Subject to closing conditions, the transaction is expected to close in the second half of November 2005. Zarlink's DTV technology assets, including its new tuners and demodulators, will be integrated into Intel's digital home consumer entertainment products. About Zarlink Semiconductor For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, consumer and ultra low-power communications, and high-performance analog. For more information, visit http://www.zarlink.com. Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Regulatory Authorities, should visit the Company's web site at http://www.zarlink.com or contact investor relations. 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 following: rapid technological developments and changes; our ability to achieve profitability and generate positive cash flows in the future; our exposure to product warranty claims resulting from product defects or failures; our dependence on our foundry suppliers and third-party subcontractors; increasing price and product competition; our exposure to currency exchange rate fluctuations and other factors inherent in our international operations; and other factors referenced in our Annual Report on Form 20-F for the fiscal year ended March 25, 2005. Investors are encouraged to consider the risks detailed in this filing. Zarlink, ZL and the Zarlink Semiconductor logo are trademarks of Zarlink Semiconductor Inc.

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