CSR Has Record Interim Results, and Strong Outlook for 2006.

CAMBRIDGE, England -- CSR plc (LSE:CSR) :

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CSR plc today announced its unaudited financial results for the second quarter and first half of 2006, reporting strong increases in revenue and operating profits for the quarter and the half-year. Volumes continue to increase, with 100 million units shipped in the first half of 2006.

CSR's second quarter revenues are up 92% to $182.4m and operating profit for the quarter rose 122% to $41.9m. Revenues for the first half of 2006 are up 97% to $317.3m, whilst operating profit for the first half of 2006 is up 127% to $66.2m. Looking forward, CSR expects an overall increase of 60-70% unit market growth in the whole Bluetooth market in 2006.

CSR's CEO John Scarisbrick commented on today's results: "We have achieved a record first half year for revenues, profits and operating cash flow. The results reflect the growth of the Bluetooth market, the strength of CSR's position and our ability to maintain margins. We were delighted to ship over 100 million units in the first half of 2006; this represents around one third of the total Bluetooth shipments CSR has made to date.

We continue to see significant opportunities in the Bluetooth market, with estimates ranging from 500 to 550 million unit shipments for the whole of 2006, compared to 317 million units in 2005. This rapid growth is being driven by increasing attach rates in the important mobile phone segment where CSR is well positioned as well as the continued adoption of Bluetooth in non-cellular applications.

These results put us well on track to meet expectations for the full year."

CSR achieved its 1500th design win during Q2 and in the first half of 2006 maintained a design win share in the Bluetooth market in excess of 60%. CSR gained 154 new design wins across the various applications for its leading BlueCore technology. In the important mobile phone sector, notable CSR design wins included 20 Samsung design wins, 10 Nokia design wins, 5 LG design wins and 2 Motorola design wins in the first half of 2006. Going forward, CSR sees evidence of Bluetooth being adopted in more lower end phones.

In Q2 2006 CSR also continued its strong leadership of the Bluetooth headset market winning almost 90% of the available mono headset designs, all of the higher speed EDR headset designs, and 75% of the stereo headset designs including Samsung and Nokia.

In the automotive segment, CSR won 77% of all automotive designs including handsfree designs for Daewoo, Sony and Southwing, and GPS designs with Thales and Harman International.

CSR continues to invest in people and the company's headcount increased from 719 at the end of Q1 2006, to 810 at the end of Q2.

For the full version of CSR's interim results, visit: http://ir.csr.com/csr/news/releases/pr2006/2006-07-26/

Or download the PDF document at: http://ir.csr.com/csr/news/releases/pr2006/2006-07-26/2006-07-26.pdf

About CSR

CSR is the leading global provider of Bluetooth technology and has developed expertise in other single-chip wireless communication standards such as Wi-Fi (IEEE802.11). CSR offers developed hardware/software solutions for Bluetooth based around BlueCore, a fully integrated 2.4 GHz radio, baseband and microcontroller.

CSR has already launched its fifth generation BlueCore suite and is in volume manufacture of its fourth generation BlueCore devices. BlueCore4 supports the Enhanced Data Rate (EDR) standard which was ratified at the end of 2004. Outside of Bluetooth, CSR has also developed UniFi, the first single chip 802.11a/b/g embedded solution specifically targeting the mobile phone and consumer electronics markets. BlueCore features in over 60 per cent of all qualified Bluetooth enabled products and modules listed on the Bluetooth website with industry leaders including Apple, Dell, IBM, Motorola, NEC, Nokia, Panasonic, RIM, Sharp, Sony and Toshiba using BlueCore devices in their range of Bluetooth products.

CSR has its headquarters and offices in Cambridge, UK, and offices in Japan, Korea, Taiwan, China, India, France, Denmark, Sweden and both Texas and Detroit in the USA.

More information can be found at www.csr.com.