Akustica Introduces World's First Acoustic System-on-Chip; Technology Set to Revolutionize Sound Capture, Processing and Reproduction.

Business Editors/High-Tech Writers

PITTSBURGH--(BUSINESS WIRE)--April 21, 2003

In a significant technology breakthrough that will revolutionize the performance, design and manufacturing of communications and electronics products, Akustica, Inc., a fabless semiconductor company, has introduced the industry's first successful implementation of an acoustic System-on-Chip (SoC).

Akustica's acoustic SoCs (called "Microphone Chips" and "Speaker Chips") are based on patented MicroElectroMechanical Systems (MEMS) technology that integrates the functionality of multiple microphones or speakers with microelectronics and software onto a single, standard CMOS semiconductor chip. The result is a new class of acoustic solutions that deliver unprecedented capabilities for capturing, processing and reproducing sound.

Akustica's first acoustic SoC is an Analog Microphone Chip. The chip is comprised of an array of 64 membranes combined with an on-chip analog amplifier. It measures 3mm x 3.65mm x .5mm and its performance is on par with standard electret condenser microphones. Akustica is currently sampling its Analog Microphone Chip with key customers in North America, Europe and Asia.

"The introduction of Akustica's first Analog Microphone Chip represents the dawn of a new era in sound innovation," said James H. Rock, Akustica's president and chief executive officer. "We look forward to introducing a wide-range of chips in the coming months that will help manufacturers develop exciting new products with distinct performance advantages."

Akustica's chips offer a number of unique advantages as compared to conventional microphones and speakers:

                    Conventional Akustica            Advantage
                     Components     Chips
------------------- ------------ ----------- -------------------------
                                             Combine signal processing
Integrated               No          YES      circuitry, software and
 Electronics                                  the functionality of
                                              microphones or speakers
                                              onto a single, standard
                                              CMOS semiconductor chip
------------------- ------------ ----------- -------------------------
                                             Deliver a range of
Performance              No          YES      advanced acoustic
 Innovation                                   solutions such as
                                              directionality, noise
                                              cancellation and digital
                                              integration
------------------- ------------ ----------- -------------------------
                                             Can be rapidly and cost-
Design Innovation        No          YES      effectively designed and
                                              configured to meet the
                                              specific requirements of
                                              different device and
                                              system architectures
------------------- ------------ ----------- -------------------------
                                             Enable component
Manufacturing            No          YES      reduction and subsystem
 Efficiencies                                 integration and can be
                                              assembled using
                                              automated Surface Mount
                                              Technology processes
------------------- ------------ ----------- -------------------------
                                             Fabricated using standard
Standard CMOS            No          YES      and widely available
 Fabrication                                  CMOS processes and
                                              foundries, ensuring they
                                              are produced with the
                                              best available
                                              technologies, consistent
                                              quality and scalable
                                              capacity
------------------- ------------ ----------- -------------------------

In addition to its superiority over conventional acoustic components, Akustica's Analog Microphone Chip also offers distinct advantages over other MEMS microphones, including:

-- Standard CMOS fabrication - Akustica is producing its

Microphone Chip in standard CMOS. Other MEMS microphones

require more expensive and less flexible custom and captive

fabrication processes.

-- Multiple Membranes - Akustica is producing its Microphone Chip

with multiple membranes on each chip, enabling a number of

advanced capabilities for capturing and processing sound.

Other MEMS microphones on the market today offer only one

membrane per chip, limiting the ability to provide new

acoustic capabilities.

-- System-on-Chip - Akustica's Microphone Chip is a monolithic

solution that integrates microphone functionality and signal

processing onto a single CMOS chip. Other MEMS microphones

require at least two chips - a MEMS chip coupled to a separate

ASIC chip - to perform even the most basic functions necessary

to capture and process sound.

"The capabilities of conventional microphones have not kept pace with the evolution of communications and electronics products," said Dr. Kaigham (Ken) J. Gabriel, Akustica's chairman and chief technology officer. "Other MEMS microphones are hampered by custom fabrication and costly silicon approaches that limit their real-world potential. Akustica's Analog Microphone Chip represents both a significant technological breakthrough and the death of the microphone as we know it today."

EDITORS NOTE: PHOTOGRAPHS OF AKUSTICA'S ANALOG MICROPHONE CHIP ARE AVAILABLE FOR PUBLICATION.

About Akustica

Akustica, a fabless semiconductor company, is the leading provider of acoustic System-on-Chip (SoC) solutions. The company's acoustic SoC solutions are based on patented CMOS MEMS technology and deliver significant performance, design and manufacturing advantages for communications and electronics products. Akustica's Microphone and Speaker Chips provide unprecedented capabilities for capturing, processing and reproducing sound by combining the functionality of microphones or speakers with microelectronics and software onto a single, standard CMOS semiconductor chip. For more information, please visit www.akustica.com.