CSR Has Strong First Quarter and a Positive Outlook.

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

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E[acute accent]CSR plc (LSE:CSR) today announced its unaudited financial results for the first quarter of 2006, reporting revenue increase of 103% and operating profit increase of 136%. CSR continues to maintain a design win share in the Bluetooth market in excess of 60%, with the company achieving 121 wins across the various applications for its leading BlueCore technology. CSR continues to lead the higher data rate (3Mbps) EDR Bluetooth market, having won 84% of the designs in this quarter. E[acute accent]In the mobile phone sector, CSR achieved 36 designs (46%) in mobile phones - with more than 140% more wins than the closest competitor. CSR won 8 Samsung mobile phone design wins, 3 with Nokia, 2 with Motorola and 4 with LG. CSR also continued its leadership of the Bluetooth headset market winning almost 80% of the available designs. CSR won 100% of the laptop PC designs in the quarter and 78% of all automotive designs. E[acute accent]In the consumer segment, CSR won a notable design for its BlueCore technology into a Samsung MP3 player with stereo headset. E[acute accent]CSR continues to invest in people and the company's headcount increased from 688 at the end of Q4 2005, to 719 at the end of Q1 2006. Further headcount growth is planned to continue in order to drive and support CSR's business growth.

Revenue: up 103% to $134.9m (Q1 2005: $66.4m)
Gross margin: up to 47.3% (Q1 2005: 46.6%)
Operating profit: up 136% to $24.3m (Q1 2005: $10.3m)
Operating margin: up to 18.0% (Q1 2005: 15.5%)
Profit before tax: up 137% to $25.8m (Q1 2005: $10.9m)

E[acute accent]Newly appointed CEO, John Scarisbrick, commented on today's results, "CSR has had a good start to the year. Customer orders have accelerated

across all applications since the Chinese New Year and we are benefiting from a robust share of Bluetooth design wins. Bluetooth attach rates in mobile phones continue to increase as the demands for hands free calling grows and as mobile phones provide additional services, and we believe the whole Bluetooth market will now grow at between 60 and 70% year-on-year in 2006. E[acute accent]Looking forward the company is in good shape; a superbly talented organisation, at the forefront of its industry with both a world-class committed workforce and a solid blue-chip customer base. I am excited at the opportunity ahead." E[acute accent]For the full version of CSR's financial announcement, visit: http://ir.csr.com/csr/news/releases/pr2006/2006-05-02/

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E[acute accent]About CSR

E[acute accent]CSR plc 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. E[acute accent]CSR has now 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. BlueCore4 remains the only EDR silicon to be shipping in volume today. In November 2004 CSR launched UniFi, the first single chip 802.11a/b/g embedded solution specifically targeting the mobile phone and consumer electronics markets. E[acute accent]BlueCore features in over 50 per cent of all Bluetooth devices shipped and over 60 per cent of all qualified Bluetooth enabled products and modules listed on the Bluetooth website with industry leaders including Nokia, Dell, Panasonic, Sharp, Motorola, IBM, Apple, NEC, Toshiba, RIM and Sony using BlueCore devices in their range of Bluetooth products. E[acute accent]In March 2005, CSR acquired Clarity Technologies Inc., for its Clear Voice Capture (CVC) technology that enhances the audio performance of any voice-based product or system. Applications for CVC include wireless headsets, handsets and automotive hands free systems. E[acute accent]In August 2005, CSR completed the acquisition of UbiNetics' software business, providing a strong R&D team to accelerate its existing software development in Bluetooth, Wi-Fi and UWB. The UbiNetics team gives CSR the capacity to extend its offering to mobile handset customers. E[acute accent]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.

E[acute accent]More information can be found at www.csr.com and the partner web site www.btdesigner.com

E[acute accent]More information about Bluetooth technology can be found on the SIG web site at www.bluetooth.com