Cirrus Logic Spins Out Communications Product Group; Spin Out Marks Another Milestone in Restructuring Program.

FREMONT, Calif.--(BUSINESS WIRE)--Oct. 29, 1998--Cirrus Logic Inc. (Nasdaq:CRUS) today announced it has entered into a memorandum of understanding to spin out a group of about 35 employees from its communications business unit to form Basis Communications.

Under terms of the agreement, Basis will acquire a portfolio of Cirrus Logic's communications products, which Basis will continue to manufacture and support. Cirrus Logic will work closely with Basis to assure full customer support through the transition, and retain an equity position in the new venture.

"This action represents yet another milestone in our program to return the company to a predictable and sustainable business model through a sharpened focus on proprietary precision linear and advanced mixed-signal chip solutions," said David D. French, president and COO of Cirrus Logic. French confirmed that the product portfolio being acquired by Basis accounted for less than 3 percent of Cirrus Logic's consolidated revenue.

Cirrus Logic is a premier supplier of precision linear circuits and advanced mixed-signal system-level chip solutions, the latter of which demand high-performance mixed-signal processing, embedded DSP, algorithms and firmware. The company's products, sold under its own name and the Crystal product brand, enable high-volume applications in mass storage, communications, consumer electronics and industrial markets. Additional information about Cirrus Logic is available at http://www.cirrus.com.