Compal Communications Passes FTA Using Silicon Laboratories' Aero Transceiver; Two Projects Pass FTA Due to Aero's Ease of Use and High Performance.

Business Editors and High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Sept. 9, 2002

Silicon Laboratories Inc. (Nasdaq:SLAB) today announced that Compal Communications has achieved full type approval (FTA) certification with two GSM handset projects using Silicon Labs' Aero(tm) GSM transceiver. The Aero transceiver is the industry's only 100 percent CMOS RF front end for GSM applications and uses the fewest number of external components of any transceiver solution available today.

Due to its small size, ease of use and superior performance, the Aero transceiver was designed into two of Compal Communications' new handsets, including a tri-band GPRS handset and a small form factor voice-only phone. The Aero transceiver's high level of integration enabled Compal Communications to develop the smallest, most compact handsets that are significantly easier to manufacture than previous solutions.

"As an innovative supplier of GSM handsets, we value solutions that provide the most dramatic reductions in cost and size, while also providing industry-leading performance," said Henry Lee, senior vice president of Compal Communications. "With the lowest number of components and the most compact solution on the market, the Aero transceiver was the only solution suitable for our super-slim profile handsets. Additionally, the high quality performance of Silicon Labs' Aero transceiver significantly eased the FTA process making these two projects the smoothest projects to pass FTA."

"The Aero transceiver's small footprint and minimal component count is an optimum solution for Compal Communications' innovative handsets," said Ed Healy, vice president of Silicon Laboratories. "We are pleased to provide a solution that allows innovators like Compal Communications to simplify hardware design and add more functionality for the consumer."

Achieving FTA certification for use under the GSM airwave standards is a significant milestone in the design process and a gate that must be successfully passed before volume production of new wireless handsets or terminals can begin. The performance of the RF transceiver is one of the most significant components in determining if a handset will satisfy the stringent GSM standard.

About Silicon Labs' Wireless Products

With over 30 patents filed by Silicon Labs on its CMOS RF technology, the Aero GSM transceiver provides a complete RF front-end for multi-band GSM digital cellular handsets in 100 percent CMOS process technology. The highly compact solution integrates the IF SAW filter, external low noise amplifiers (LNA) for three bands, transmit and RF voltage controlled oscillator (VCO) modules and many of the remaining discrete components found in conventional GSM handset designs including loop filters and tank components. The Aero transceiver thus enables the design of a GSM radio with the lowest number of overall external components, 18 for dual-band and 22 for tri-band. The Aero transceiver is compliant with General Packet Radio Services (GPRS) Class 12, supporting high data rate communications for Internet-enabled wireless terminals.

Silicon Labs also offers a full family of RF synthesizer products based on its patented CMOS technology for RF applications. The company has shipped over 25 million synthesizers including solutions for GSM, 802.11b and W-CDMA or "3G" applications as well, as a wide range of derivative products providing a selection of different frequency plans.

About Compal Communications

Compal Communications Inc., a subsidiary of Compal Electronics, Inc., develops and manufacturers GSM handsets. Compal Electronics manufactures and sells computer monitors, notebook computers, cell phones and LCDs. Compal has established branches in Taiwan, the People's Republic of China, South Korea, England, Holland and the United States.

About Silicon Laboratories

Silicon Laboratories Inc. designs, manufactures and markets proprietary high-performance mixed-signal integrated circuits (ICs) for a broad range of communications markets. Silicon Laboratories is an ISO9001-certified manufacturer and has applied for over 145 patents on its mixed-signal technology. Silicon Labs was incorporated in 1996 and is based in Austin, Texas. Additional information about Silicon Labs is available at www.silabs.com or through the toll-free investor relations line at 1-877-411-SLAB (7522).

Cautionary Language

This press release may contain forward-looking statements based on Silicon Laboratories' current expectations. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Silicon Laboratories believes that it is important to communicate the company's future expectations to investors. However, there may be events in the future that Silicon Laboratories is not able to accurately predict or control. For a discussion of these and other factors, which could impact Silicon Labs' financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to Silicon Labs' recent filings with the SEC, particularly the Form 10-K filed January 22, 2002, the Form 10-Q filed April 22, 2002, and the Form 10-Q filed July 22, 2002.

Silicon Laboratories' news releases and product information may be obtained via the Worldwide Web at http://www.silabs.com/

Note to editors: Silicon Laboratories, Aero and the Silicon Laboratories logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.