BMW Extends Adoption of MOST(R) Multimedia Networking Technology to X5, R56 MINI & 3 Series Coupe Models.

First Auto Maker to Integrate SMSC's New INIC Architecture

HAUPPAUGE, N.Y. -- SMSC (Nasdaq: SMSC) today announced that its Media Oriented Systems Transport (MOST([R])) networking technology has been selected as part of the infotainment systems for the recently launched BMW X5, R56 MINI and 3 Series Coupe platforms. The launch of MOST on the X5 represents the first full featured OEM implementation of SMSC's new Intelligent Network Interface Controller (INIC) architecture, designed to simplify the design of robust MOST based network nodes. MOST is the infotainment network in over 40 vehicle platforms on the road today.

This INIC solution is a complete system-on-chip, leveraging SMSC's MOST NetServices network driver to set up a MOST interface, which provides network stability independent from potential misbehavior of external applications. In addition, it provides easy access to all data transportation mechanisms on a MOST Network. It also incorporates SMSC's MediaLB[TM], a low cost and low pin count inter-chip communication bus developed to allow applications to connect to a MOST network with minimum hardware overhead, independent of physical layer or speed grade.

"SMSC's MOST solution was first adopted into volume production by BMW in 2001," said Christian Thiel, Vice President and Managing Director of SMSC's Automotive Infotainment Systems product line. "Since then, the technology has evolved to interoperate with a broad set of consumer applications as people demand increased device connectivity in the car. Our new INIC architecture is allowing us to meet the increasingly complex task of seamlessly transporting high bandwidth multimedia content inside the car.

"Technology aside, meeting the strict performance, quality and interoperability requirements of auto makers like BMW is no easy task. Our MOST service offering delivers on them all, and as a result, it's the standard infotainment network across the full range of BMW volume platforms."

MOST multimedia technology enables the networking of feature-rich infotainment systems in automobiles by providing the means to distribute multimedia entertainment functions among the various control devices around the car. For example, a CD changer, radio, global positioning system, mobile telephone and DVD player can be established in an efficient ring network and can send crisp, static-free audio signals digitally to the amplifier by utilizing the MOST network.

SMSC's is a supplier to nearly every major European automaker for MOST-based infotainment semiconductor solutions, including Audi, BMW, Land Rover, DaimlerChrysler, Porsche, Saab and Volvo. SMSC is a member of the steering committee of the MOST Cooperation, an association of several carmakers and their premier suppliers working to establish and refine a common standard for the evolving requirements of automotive multimedia networking.

About SMSC:

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 system controllers, non-PCI Ethernet, ARCNET, MOST and Hi-Speed USB.

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.

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, the effects of changing economic conditions domestically and internationally and on our customers; changes in customer order patterns, 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.

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