COMPAL IMPLEMENTS SILICON LABS' AERO II GSM/GPRS TRANSCEIVER.

Silicon Laboratories Inc. (Nasdaq:SLAB), Austin, Texas, has announced that Compal Communications, Inc., a global design manufacturer of mobile phones, has selected Silicon Laboratories' Aero(R) II GSM/GPRS transceiver for use throughout its handset platforms. By using the Aero II transceiver, Compal Communications was able to dramatically improve manufacturing yields and system performance on key parameters such as receiver sensitivity while reducing the design time and bill-of-materials (BOM) required for the company's highly-integrated, high-volume GSM/GPRS handsets.

Compal Communications, one of the largest handset original design manufacturers (ODMs) in Taiwan, selected the Aero II transceiver for its unique combination of superior integration and performance that exceeds the stringent requirements of the end-customers and markets. By using the Aero II transceiver, Compal's handsets deliver world-class performance on critical handset parameters such as sensitivity, which ultimately results in expanded network coverage and fewer dropped calls. The Aero II performance margin also contributed to a more efficient handset design cycle, rapid full type approval (FTA) and reduced time-to-market. In addition, by using the Aero II transceiver, Compal reduced the radio BOM, which reduced the overall cost of each handset.

"We believe that our RF expertise helps customers like Compal Communications to differentiate and simplify their design effort," said Dan Rabinovitsj, vice president of Silicon Laboratories. "Our goal is to make our customers' development less complex by delivering market leading integration and performance combined with easy-to-use, highly-reliable solutions. By adopting the Aero II transceiver, ODMs can easily customize phone platforms to address a variety of customers and markets."

Based on the company's patented technology and CMOS design innovation, the Aero II transceiver integrates all sensitive components including RF and TX voltage-controlled oscillators (VCOs), VCO tuning components, loop filters and clock coupling capacitors. This integration simplifies design and ensures consistent performance for customers seeking turnkey RF designs. The Aero II transceiver utilizes a proven digitally-controlled crystal oscillator (DCXO) that enables the use of a standard 26 MHz crystal to provide the transceiver reference clock, thereby reducing the handset BOM. The Aero II transceiver also serves as a fundamental building block supporting EDGE platforms.

Silicon Laboratories' Aero transceiver products use a software-programmable universal baseband interface, allowing handset designers to implement the transceiver with all leading basebands. The Aero transceivers are also fully compliant with GPRS Class 12 requirements, providing high-speed data communications to the mobile computing environment.

Compal Communications, Inc.

Established in 1999, Compal Communications, Inc. was funded in 2000 by Compal Electronics, a leader in computer and communications products. With its professional management team, its reputation for high-quality products and its ability to design in response to market trends, Compal Communications has earned the trust of customers and become a leader in the mobile handset industry. Compal Communications produces GSM, GPRS, EDGE and UMTS handsets for the feature phone and smart phone markets. The company's vision is to become the largest handset ODM supplier in the world by providing rapid time-to-market products with excellent quality and outstanding service to fulfill customers' needs.

For more information, visit http://gsmwww.compal.com.

Silicon Laboratories Inc.

Silicon Laboratories Inc. is a leading designer of high-performance, analog-intensive, mixed-signal integrated circuits (ICs) for a broad range of applications. Silicon Laboratories' diverse portfolio of highly integrated, patented solutions is developed by a world-class engineering team with decades of cumulative expertise in cutting-edge mixed-signal design. The company has design, engineering, marketing, sales and applications offices throughout North America, Europe and Asia.

For more information, visit http://www.silabs.com or call 512/464-9432.