5 Million and Counting -- CSR Continues to Chalk Up the Customers; New ROM products Set to Further CSR's Leadership Position.

Business Editors/High-Tech Writers

RICHARDSON, Texas--(BUSINESS WIRE)--Oct. 16, 2002

CSR (Cambridge Silicon Radio) today announced that it has shipped its 5 millionth BlueCore chip for Bluetooth.

The first single-chip BlueCore was shipped in March 2000. Now, with over 150 customers and over 57% of the v1.1 qualified Bluetooth products on the market today using its chips, CSR is sending out a clear signal of its leadership in the market for Bluetooth silicon.

In the past 12 months, CSR has signed up more major name customers from all over the world than all of its competitors combined, including scooping the design win for Microsoft's Bluetooth keyboard and mouse. The recent announcement of Microsoft's support of Bluetooth in an update to Windows XP is also a significant step in driving the mass adoption of Bluetooth. The Bluetooth semiconductor market as a whole is poised to achieve significant growth, with IMS Research predicting that over 600 million units will be shipped by 2006. IDC forecasts the market will generate $2.6 billion in revenue by 2006, up from $76.6 million in 2001.

By 2006, half of Bluetooth chip shipments are expected to be to mobile handset manufacturers. CSR recently announced its BlueCore2-ROM chip that offers the handset market the smallest and lowest price Bluetooth solution with very little dependency on external components. CSR expects this to help the company further penetrate the handset market and to extend its leadership position. The company's latest round of funding, in which CSR received a further $19 million, demonstrates the confidence investors have in the company and in the Bluetooth industry as a whole.

Eric Janson, vice president, marketing, CSR, added, "No other company can claim to have shipped more single-chip solutions into a qualified product. The next closest competitor to CSR has their silicon qualified in only one sixth the number of end products. "Janson continued, "The proliferation of CSR silicon in products around the world, says it all - from motherboards and modules in Taiwan to Microsoft keyboards and mice in the USA and Sony VAIO laptops in Japan. CSR is the number one choice when Bluetooth-enabling your products."

About CSR

CSR (Cambridge Silicon Radio) specializes in providing single-chip radio devices to the global market for short-range wireless communications, including Bluetooth(TM). The company's mission is to create the most highly integrated radio devices available, fabricated using standard CMOS technology, to provide its customers with the lowest cost of ownership of high quality digital radio.

CSR was the first company in the world to offer a true single-chip Bluetooth solution with BlueCore, a fully integrated 2.4 GHz radio, baseband and microcontroller. In Q4 2001 CSR released BlueCore2, its second-generation family, and offers developed hardware/software bundles for each of the fastest growing Bluetooth applications markets. Users can combine the chips with the CSR Bluetooth software stack to provide a fully compliant solution for data and voice communications or, used with an upper layer host software stack, CSR is able to offer a complete Bluetooth end-to-end solution.

CSR has a growing list of major international companies including Microsoft Corp., Samsung, Sony, Compaq, IBM, Fujitsu, LG, ALPS, TDK, 3Com, Mitsumi, Siemens and Motorola, who have already used CSR's BlueCore in the development of a range of Bluetooth products. In fact, up to the end of 2001, 70% of available pre-qualified modules, as listed on the qualified products page of the Bluetooth Special Interest Group (SIG) web site, feature BlueCore and it is in 57% of all qualified Bluetooth v 1.1 enabled end product designs.

CSR is headquartered in Cambridge, UK, with offices in Richardson, Texas; Tokyo, Japan; Singapore and Aalborg, Denmark.

More information about CSR can be found on the web site at www.csr.com