SMSC Introduces its First TrueAuto Hi-Speed TM USB 2.0 Hub Controller

Automotive-grade 4-port USB 2.0 port expander brings reliable connectivity to automobiles

Hauppauge/NY, (PresseBox) - SMSC (NASDAQ: SMSC), a leading semiconductor company providing innovative connectivity solutions spanning analog, digital and mixed-signal technologies, today announced the USB82514, its first TrueAuto(TM) single-chip, 4-port USB 2.0 hub controller designed specifically to meet the high reliability requirements of the automotive industry. SMSC's TrueAuto devices are designed, validated, characterized, qualified, fabricated and supported specifically for use in automotive applications.

TrueAuto is SMSC's automotive quality process. It has proven its capability to deliver leading edge quality and services to fulfill the needs of even the most demanding automotive customers. If integrated circuits ("ICs") that have been designed for consumer applications are intended for use in automotive applications, they are usually qualified according to the Automotive Electronics Council's (AEC-Q100) qualification requirements. AEC-Q100 however, just covers minimum common requirements for the qualification of an automotive IC. Many car companies and tier one automotive suppliers require extensive additional qualification tests, as AEC-Q100 alone does not lead to the ultra low defect rates that they require. In addition, AEC-Q100 primarily focuses on the qualification phase of the product cycle of an IC. Other phases such as the design and production of the IC, customer support and the handling and investigation of returns are not covered in detail. In order to reach the automotive goal of near zero defect rates, all phases of the IC product cycle need to be addressed thoroughly.

TrueAuto is SMSC's proven total approach to true automotive-grade quality. TrueAuto robustness begins with SMSC's design for reliability techniques within the silicon IC itself. Automotive-grade excellence and testability are designed into the IC. The IC is fully characterized over many operating parameters to prove the quality of the design under various conditions. Also, product qualification is focused on the most demanding customer expectations. It meets or exceeds automotive reliability standards and customer specific requirements. SMSC's TrueAuto approach goes far beyond the stress tests prescribed by the AEC-Q100 specifications. In addition, extensive technologies and processes, such as enhanced monitors are used in fabrication of TrueAuto products in order to continuously drive improvements in accordance with SMSC's zero Defects per Million (DPM) goals.

"USB has become a ubiquitous interface to transfer data to and from, charge, and control the operation of portable consumer devices," said Dr. Christian Thiel, Vice President and General Manager of SMSC's Automotive Information Systems product line. "USB connectivity is increasingly being integrated in vehicles to allow them to connect with an ever growing number of portable consumer devices. USB comes from the consumer world and the IC products that support it typically do not provide automotive-grade reliability. With the USB82514 SMSC is offering its first USB IC product with its TrueAuto quality process. It allows car makers to design compelling information and entertainment systems into their vehicles that seamlessly integrate into consumers' digital lifestyles while not having to compromise on quality."

The USB82514 is a high-performance, low-power, small footprint controller IC with 4 downstream ports that is fully compatible with the USB 2.0 specifications published by the USB Implementers Forum. The USB82514 features SMSC technologies such as MultiTRAK(TM) , PortSwap, PortMap and PhyBoost which improve performance and simplify the design process.

Availability:

Samples of the USB82514 are available today.

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 uncertainties may cause our actual future results to be materially different from those discussed in forward-looking statements. Our risks and uncertainties include the timely development and market acceptance of new products; the impact of competitive products and pricing; our ability to procure capacity from our suppliers and the timely performance of their obligations, commodity prices, potential investment losses as a result of liquidity conditions, the effects of changing economic and political conditions in the market domestically and internationally and on our customers; our relationships with and dependence on customers and growth rates in the personal computer, consumer electronics and embedded and automotive markets and within our sales channel; changes in customer order patterns, including order cancellations or reduced bookings; the effects of tariff, import and currency regulation; potential or actual litigation; and excess or obsolete inventory and variations in inventory valuation, among others. In addition, 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.

Our forward looking 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. All forward-looking statements speak only as of the date hereof and are based upon the information available to SMSC at this time. Such statements are subject to change, and the Company does not undertake to update such statements, except to the extent required under applicable law and regulation. 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" or "Risk Factors" for a more complete discussion of these and other risks and uncertainties.

Microchip Technology Inc.

Many of the world's most successful global technology companies rely upon SMSC as a go-to resource for semiconductor system solutions that span analog, digital and mixed-signal technologies. Leveraging substantial intellectual property, integration expertise and a comprehensive global infrastructure, SMSC solves design challenges and delivers performance, space, cost and time-to-market advantages to its customers. SMSC's application focus targets key vertical markets including consumer electronics, automotive infotainment, PC and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal embedded controllers, non-PCI Ethernet, ARCNET, MOST® and Hi-Speed USB.

SMSC's Automotive Infotainment Systems is a supplier of TrueAuto(TM) networking and infotainment semiconductor solutions to major automakers, including Audi, BMW, Daimler, Hyundai/Kia, Jaguar, Land Rover, Porsche, Toyota and Volvo. SMSC is a founding member of the MOST Cooperation, a cooperative of automakers, automotive systems architects and manufacturers and key components suppliers working to extend and refine the MOST® standard for the evolving requirements of automotive multimedia networking. Additional information is available at www.smsc-ais.com.

SMSC is headquartered in Hauppauge, New York with operations in North America, Asia and Europe. Engineering design centers are located in Arizona, New York, Texas and Karlsruhe, Germany. Additional information is available at www.smsc.com.

About MultiTRAK, PortSwap, PortMap and PHYBoost

SMSC's MultiTRAKTM technology provides a transaction translator for every downstream port which results in best-in-class performance in environments that mix full speed and hi-speed USB devices. PortMap results in flexible port mapping and port disable sequence so a single part can be used in multiple platforms that require 2, 3 or 4 USB ports. PortSwap eases PCB design by aligning signal traces directly to connectors. PHYBoost allows for programmable transceiver drive strength that aids to preserve signal integrity in complex system environments.

SMSC and MOST are registered trademarks and TrueAuto and MultiTRAK are trademarks of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.

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