Cirrus Logic to Sell Interest in Basis Communications; Transaction Strengthens Financial Focus on Analog and DSP Solutions for Internet Entertainment Appliances.

Business Editors/High-Tech Writers

FREMONT, Calif.--(BUSINESS WIRE)--March 21, 2000

Cirrus Logic Inc. (Nasdaq:CRUS) disclosed today that it expects to benefit financially as a result of an agreement by Intel Corporation (Nasdaq:INTC) to acquire Basis Communications Corporation, a privately held venture in which Cirrus Logic holds a minority interest.

Under terms of the agreement, announced separately today, Intel would acquire Basis Communications in a transaction valued at approximately $450 million in cash and assumed options. Subject to the closing of the agreement by the respective parties, Cirrus Logic expects to report in the quarter ending June 2000, a benefit estimated between $80 to $85 million in cash.

Basis Communications was formed in October 1998, when Cirrus Logic entered into an agreement to spinout a business unit with certain communications products considered non-core to the company's new direction. The divestiture of Basis as well as other non-core business units has enabled Cirrus Logic to expand its core audio and storage businesses, while focusing its high-performance analog and DSP expertise on Internet entertainment applications.

Cirrus Logic today is the market share leader in audio ICs spanning computer, consumer and professional segments, and is well positioned to be a leading supplier in the emerging Internet audio segment with its new Maverick(TM) line of "Market Specific Processor(TM)" solutions. The company has also captured leadership in the CD-RW segment of the optical storage market, where it is the leading supplier of encoder/decoder chip solutions that enable downloading and storage of Internet content.

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements that are dependent on certain risks and uncertainties including such factors, among others, as the completion of the transaction between Intel Corporation and Basis Communications. For more details on risk factors that could cause actual results to differ materially, please see Cirrus Logic's most recent Form 10-Q and 10-K filings with the Securities and Exchange Commission.

Cirrus Logic is a premier supplier of high-performance analog circuits and advanced mixed-signal chip solutions. The company's products, sold under its own name and the Crystal product brand, enable system-level applications in mass storage, audio, and precision data conversion. Additional information about Cirrus Logic is available at www.cirrus.com.