Cirrus Logic Confirms Agreement To Sell Wireless Semiconductor Business.

FREMONT, Calif.--(BUSINESS WIRE)--Dec. 19, 1996--Cirrus Logic Inc. (Nasdaq:CRUS) confirmed today that it has signed a definitive agreement to sell the Wireless Semiconductor group of its PCSI subsidiary in San Diego, Calif. to Rockwell International Corp. in Seal Beach, Calif.

This transaction is expected to close during the next quarter, subject to certain conditions and regulatory approvals. It follows closely Cirrus Logic's sale of PCSI's Wireless Infrastructure Equipment group to ADC Telecommunications Inc. in Minneapolis, Minnesota.

The recently announced divestitures are part of Cirrus Logic's focused strategy program, which calls for products and technologies to align with key product initiatives in multimedia, communications and mass storage markets. According to Cirrus Logic, PCSI's Wireless Semiconductor group's expertise in RF (radio frequency) and wireless protocols does not align with these key market focus areas. Likewise, PCSI's Infrastructure Equipment group, with its offering of base stations, was determined to be a deviation from the company's key initiatives.

"We're continuing to make solid progress in aligning our corporate structure and expenditures to support our focused strategy to pursue key market opportunities in multimedia, communications and mass storage," said Mike Hackworth, president and CEO of Cirrus Logic. "Our divestitures have enabled us to focus our resources on strategic initiatives, not only in the development of advanced graphics/video, audio and modem chip solutions, but also in the expansion of our manufacturing infrastructure."

Hackworth noted that MiCRUS, Cirrus Logic's joint manufacturing venture with IBM, has begun production of 0.35-micron wafers, and that Cirent Semiconductor, a subsequent joint venture established with Lucent Technologies, will begin shipping its first 0.35-micron wafers in early 1997. He also confirmed that Cirrus Logic has completed a $250 million lease package to finance the advanced fab equipment for its Cirent joint venture.

In addition to this financing, the company recently announced that it had raised $300 million through an offering of convertible notes. "We will use this funding to support our strategic manufacturing expansion, process technology investments and key product R&D that are fundamental to future growth," said Hackworth.

Headquartered in Fremont, Calif., Cirrus Logic Inc. is a leading manufacturer of advanced integrated circuits for the desktop and portable computing, telecommunications, and consumer electronics markets. Additional information about Cirrus Logic and its subsidiaries can be accessed on the World Wide Web at http://www.cirrus.com/ or via fax-on-demand at 800/359-6414 (dial 510/249-4200 from outside the United States).

Forward looking statements contained in this document reflect management's current intentions and expectations. Actual future results could vary materially depending on certain risks and uncertainties, including factors such as regulatory approval and completion of the aforementioned definitive agreement, actual operational spending, and the risk factors listed in the company's Form 10-K for the fiscal year ended March of 1996, and the Form 10-Q for the quarter ended September of 1996.

CONTACT: Cirrus Logic Inc.

Tom Rigoli, 510/226-2259

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