Catalyst Semiconductor Introduces Broad Line of Digitally Programmable Potentiometers -- DPP; New Family Continues Catalyst's Thrust Into Analog, Mixed-Signal Strategy.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--April 6, 2001

Catalyst Semiconductor (Nasdaq:CATS) today introduced a new family of mixed-signal, nonvolatile Digitally Programmable Potentiometers (DPP(TM)). These devices are specifically designed to replace mechanical potentiometers and trimmers over a broad spectrum of applications. They are ideal for automating the calibration and adjustment of electronic systems to lower system costs, enhancing overall system performance and improving system reliability. They allow remote adjustments and controls that are not possible with mechanical potentiometers which require manual or machine adjustment.

"Catalyst's new line of digitally programmable potentiometers (DPP) is ideal for final calibration of high-volume products such as optical transceivers, camcorders, and mobile internet terminals on automated production lines," said Barry Wiley, Vice President, Corporate Marketing. "They are also ideal for adjustment of equipment in locations that are hard to access, or in hazardous environments. Best of all, they'll never wear out."

"Catalyst Semiconductor is committed to expanding its presence in the analog, mixed-signal marketplace," Wiley continued. "Following our introduction of DPPs, will be programmable microprocessor supervisors, low dropout linear regulators and charge pumps, all of which are scheduled for introduction throughout the balance of the year."

DPP(TM) Advantages over Mechanical Potentiometers

For decades, mechanical potentiometers have been universally employed in electronic circuitry. They are used in millions of electronic products, for every conceivable application. Yet, until quite recently, electronic potentiometers were not sufficiently cost-competitive to be considered a viable alternative. However, with improved productivity and yields from Catalyst's sub-micron CMOS manufacturing processes, electronic potentiometers are now fully cost-competitive with mechanical potentiometers and, for many applications, actually provide a lower total system cost.

Digitally programmable potentiometers offer many other benefits, as well. They have better settability, drift specifications and cycle-life specifications than mechanical potentiometers. They fit into smaller spaces with multiple potentiometers possible in a single package. They provide superior tracking between multiple potentiometers. It is easier to change a setting with electronic potentiometers and accurately change it back. Using industry standard IC packages, they are easily machine-insertable and offer far better resilience to environmental contaminants. Also, DPPs can function in volatile as well as non-volatile modes, whereas mechanical potentiometers are inherently non-volatile.

Twelve Member Family

Catalyst's first wave of digitally programmable potentiometers has twelve models. Currently in full production are the CAT514, CAT515, CAT524 and CAT525 quad, 256-tap potentiometers. The dual CAT512, CAT522, CAT513 and CAT523 256-tap potentiometers, and the single CAT511 and CAT521 256-tap potentiometers will be available for sampling in June. The low-cost CAT5112 and CAT5114 single, 32-tap potentiometers are sampling now, with volume shipments scheduled for June.

In addition, two single, 100-tap models, the CAT5111 and CAT5113, will be added to the line-up during the third quarter. Additional DPP products are planned for introduction later this year.

All models are controlled via a 3-wire serial interface. Both buffered and non-buffered outputs are available. The quad and dual devices have independently programmable DPPs with output ranges that include both supply rails. Output settings, stored in non-volatile static RAM, are not lost when the device is powered down and are automatically reinstated when power is returned.

Product Pricing

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CAT5114P/S/R/U        Single 32 Tap                         $0.48
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CAT5112P/S/R/U        Single 32 Tap with output buffer      $0.51
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CAT511P/J             Single 256 Tap                        $1.14
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CAT521P/J             Single 256 Tap with output buffer     $1.24
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CAT513P/J             Dual 256 Tap                          $1.33
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CAT523P/J             Dual 256 Tap with output buffers      $1.43
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CAT512P/J             Dual 256 Tap                          $1.46
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CAT522P/J             Dual 256 Tap with output buffers      $1.57
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CAT514P/J             Quad 256 Tap                          $1.49
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CAT524P/J             Quad 256 Tap with output buffers      $1.69
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CAT515P/J             Quad 256 Tap with independent inputs  $1.95
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CAT525P/J             Quad 256 Tap with independent inputs  $2.10
                      and output buffers
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Devices are offered in industry-standard pinouts, DIP and surface mount SOIC packages, and standard commercial (0 to 70 degree centigrade) and industrial temperature (-40 to 85 degree centigrade) ranges. The CAT5112 and CAT5114 are also offered in MSOP and TSSOP packages. Ball Grid Array (BGA) packaging is planned for the fourth quarter.

About Catalyst Semiconductor

Founded in 1985, Catalyst Semiconductor, Inc. is headquartered in Sunnyvale, California. The Company designs and markets a broad range of programmable products including Flash Memories, Serial and Parallel EEPROMs, NVRAM, Digitally Programmable Potentiometers, Microcontroller Supervisory circuits and other programmable Mixed Signal products. Catalyst products are used in telecommunications, networking systems, computation, industrial and consumer markets, driven by the Internet revolution. Typical applications include modems, network cards, PC BIOS, DIMM modules, cellular telephones, digital satellite box receivers, set-top boxes and Internet routers. Catalyst's Quality Management System is ISO 9001 certified. For additional information about Catalyst Semiconductor, visit our web site at www.catsemi.com

Except for those statements that report the Company's historical results, the statements being made are forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. Factors which could cause actual results to differ from expectations include the following: economic conditions in the market generally and in the semiconductor industry specifically, volatility in supply and demand affecting revenues and market prices, price and availability of silicon foundry, assembly and test subcontract capacity required to meet financial targets and/or meet backlog requirements, risks and delays associated with bringing up new production capabilities with deliveries from subcontractors, timing and market acceptance of new products, increased expenses associated with new product introductions or process changes, delays in developing or achieving volume production of new products, which can result in delays or failure to contribute to revenues and profits, ability of the Company to maintain its customer and vendor base and delays in and/or inability in raising additional capital. Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained under the heading "Certain Factors That May Affect the Company's Future Results of Operations" listed from time to time in Catalyst's SEC reports, including but not limited to the report on Form 10-K for the year ended April 30, 2000 and Forms 10-Q for the quarters ended October 31, 2000 and January 31, 2001.