Cirrus Logic's Audio Decoder Chip First to Enable Dolby Certified Pro Logic II Surround-Sound From Kenwood.

Business Editors & High-Tech Writers

CES 2001

LAS VEGAS--(BUSINESS WIRE)--Jan. 6, 2001

Creating 5.1 channel surround-sound from traditional 2-channel stereo recordings is now possible thanks to Dolby Pro Logic II Audio technology, first available to the market from Cirrus Logic Inc. (Nasdaq:CRUS) in its Crystal(R) CS49326 DSP audio decoder chip.

The chip is being used by Kenwood USA in its new Pro Logic II A/V receivers -- shown for the first time at this week's Consumer Electronics Tradeshow CES.

Dolby Pro Logic II is a new surround sound algorithm that is backwards compatible with its predecessor Dolby Pro Logic and provides new music and movie modes to create a higher bandwidth stereo rear surround sound. The market leader in audio decoders for the A/V receiver market, shipping to seven of the top 10 consumer brands, Cirrus Logic is the first manufacturer to provide the new Pro Logic II decoding technology with its Crystal audio decoders.

Using the Crystal CS49326, Kenwood USA is introducing the market's first Pro Logic II A/V receivers, the VR-507, VR-509 and VR-510. Cirrus Logic, Dolby Laboratories and Kenwood USA are all conducting live demonstrations of Pro Logic II at their exhibits at CES this week, using Kenwood receivers.

Until now, consumers were limited in how they could play their audio from two-channel (stereo) sources like CDs, VHS tape and stereo broadcast TV into a 5.1 channel amplifier/speaker set. "The technology in Pro Logic II is the first fundamentally new approach in matrix decoder design since the basic design which is still at the core of every other active matrix surround decoder," said Roger Dressler, director of Technology Strategy for Dolby Laboratories. "Pro Logic II was designed from the outset to convert conventional stereo music recordings, which will be with us for some time to come, to a natural, believable surround experience. The result is a decoder that can handle a wide range of movie and music program material with equal skill. Dolby is proud to be handling the licensing and technical support of this exciting new technology."

"Cirrus moved quickly to license the technology and program the algorithm themselves on their Crystal branded DSPs," said Brent Butterworth, director of consumer technology marketing at Dolby Laboratories. "Thanks in large part to Cirrus Logic's enthusiastic, speedy adoption and implementation of Pro Logic II, this breakthrough technology will be available to consumers in 2001 in a broad range of products, including receivers priced as low as $300 list."

"Kenwood was eager to get the Pro Logic II technology into our products and be the first to offer this new surround technology to our dealers and customers," said Brian Towne, Kenwood national product manager for home electronics. "A result of our long standing relationship with Cirrus Logic allowed us to add Pro Logic II into our new receivers. We could not be more happy with the results."

For system manufacturers the ability to quickly update their designs (already using CS49326) with production-ready certified Pro-Logic II software will significantly simplify design and reduce overall system cost. "We are thrilled to enable Kenwood with Dolby Pro-Logic II functionality in their new product line this year," said Terry Ritchie, vice president, DSP technologies at Cirrus Logic. "Again we have demonstrated the advantages of our cost-effective programmable Crystal audio DSPs and a factory direct programming model that lets Cirrus Logic get to the market first with such an important advancement in digital surround sound decoding."

Code Availability

The Dolby Pro-Logic II Decoder DSP firmware is production-ready and available now for licensing to execute on the entire CS49300 family of Crystal DSPs by Cirrus Logic Inc.

About Kenwood USA Corp.

Founded in 1961, Kenwood USA Corporation is the largest audio specialty company in the United States. Offering more than 250 home, car, and personal audio products, Kenwood is recognized by consumers and the consumer electronics industry for developing products that provide superior sound quality, reliability and value. Kenwood USA Corporation, based in Long Beach, Calif., is the largest subsidiary of Kenwood Corporation. Further information can be obtained by contacting Kenwood USA Corporation, P.O. Box 22745, Long Beach, Calif. 90801, by calling 800/Kenwood, or by visiting www.kenwoodusa.com.

About Dolby Laboratories

Dolby Laboratories is the developer of signal processing systems used worldwide in applications that include motion picture sound, consumer entertainment products and media, broadcasting and music recording. Based in San Francisco with European headquarters in England, the privately held company also has offices in New York, Los Angeles, Shanghai, Beijing, and Tokyo. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

About Cirrus Logic Inc.

Cirrus Logic is a premier supplier of high-performance analog and DSP chip solutions for Internet entertainment electronics. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets high-volume audio, storage and communications applications. Cirrus Logic sells its products under the Crystal(R), Maverick(tm) and 3Ci(tm) brands as well as its own name. Founded in 1984 in Silicon Valley, Cirrus Logic operates from headquarters in Austin, Texas and major sites located in Fremont, Calif. and Broomfield, Colo. as well as offices in Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.

Safe Harbor Provision

Any forward-looking statements and all other statements that may be made in this news release that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Please refer to Cirrus Logic's current Form 10-K and other filings with the Securities and Exchange Commission for more information on the risk factors that could cause actual results to differ. The foregoing information represents our outlook as of the date of this news release, and Cirrus Logic undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Note to editors: Cirrus Logic, Crystal(R) and Maverick(tm) are registered trademarks of Cirrus Logic Inc.

All other product names noted herein may be trademarks of their respective holders.