MOST[R] Networking Solution Adopted in First Lexus Platform.

First Worldwide Toyota Brand Rollout with MOST

HAUPPAUGE, N.Y. -- SMSC (NASDAQ: SMSC), a leading semiconductor company providing innovative connectivity solutions spanning analog, digital and mixed-signal technologies, announced that its Media Oriented Systems Transport (MOST[R]) networking technology, has been selected as part of the infotainment system for the new Lexus RX, which is distributed worldwide.

Following Toyota's lead in the adoption of MOST50 in 2007, the Lexus RX MOST infotainment system incorporates SMSC's intelligent Network interface controller (INIC[TM]) architecture. This complete system-on-chip provides easy access to all data transportation mechanisms on a MOST Network.

"The adoption of MOST in the Lexus RX SUV marks a significant milestone for the success of MOST as the global de-facto standard for high bandwidth in-car multimedia networking since it is the first Lexus model with MOST and the first Toyota platform to roll out worldwide," said Dr. Christian Thiel, Vice President and General Manager of SMSC's Automotive Information Systems product line. "We have crossed the threshold beyond initial deployment in Toyota vehicles for the Japan domestic market. We now look forward to a broad penetration of their global line-up of vehicles requiring an infotainment network."

MOST multimedia networking technology enables the networking of feature-rich infotainment systems in automobiles by providing the means to distribute multimedia entertainment functions among the various control devices around the car. For example, a CD changer, radio, global positioning system, mobile telephone and DVD player can be established in an efficient ring network and can send crisp, static-free audio signals digitally to the amplifier by utilizing the MOST network.

MOST50 uses a double density coding scheme to double the bandwidth over the first generation, MOST25, while maintaining the same physical transmission frequency. With MOST50, the data signal is transmitted over Shielded Twisted Pair (STP) or even Unshielded Twisted Pair (UTP) copper cables, allowing customers to use conventional wire harness and established manufacturing processes.

SMSC's Automotive Infotainment Systems is a supplier of TrueAuto[TM] networking and infotainment semiconductor solutions to major automakers, including Audi, BMW, Daimler, Hyundai/Kia, Jaguar, Land Rover, Porsche, Toyota and Volvo. SMSC is a founding member of the MOST Cooperation, a cooperative of automakers, automotive systems architects and manufacturers and key components suppliers working to extend and refine the MOST([R]) standard for the evolving requirements of automotive multimedia networking. Additional information is available at www.smsc-ais.com.

About SMSC:

Many of the world's most successful global technology companies rely upon SMSC as a go-to resource for semiconductor system solutions that span analog, digital and mixed-signal technologies. Leveraging substantial intellectual property, integration expertise and a comprehensive global infrastructure, SMSC solves design challenges and delivers performance, space, cost and time-to-market advantages to its customers. SMSC's application focus targets key vertical markets including consumer electronics, automotive infotainment, PC and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal embedded controllers, non-PCI Ethernet, ARCNET, MOST([R])and Hi-Speed USB.

SMSC is headquartered in Hauppauge, New York with operations in North America, Asia and Europe. Engineering design centers are located in Arizona, New York, Texas and Karlsruhe, Germany. Additional information is available at www.smsc.com.

Forward Looking Statements:

Except for historical information contained herein, the matters discussed in this announcement are forward-looking statements about expected future events and financial and operating results that involve risks and uncertainties. These uncertainties may cause our actual future results to be materially different from those discussed in forward-looking statements. Our risks and uncertainties include the timely development and market acceptance of new products; the impact of competitive products and pricing; our ability to procure capacity from our suppliers and the timely performance of their obligations, commodity prices, potential investment losses as a result of liquidity conditions, the effects of changing economic and political conditions in the market domestically and internationally and on our customers; our relationships with and dependence on customers and growth rates in the personal computer, consumer electronics and embedded and automotive markets and within our sales channel; changes in customer order patterns, including order cancellations or reduced bookings; the effects of tariff, import and currency regulation; potential or actual litigation; and excess or obsolete inventory and variations in inventory valuation, among others. In addition, SMSC competes in the semiconductor industry, which has historically been characterized by intense competition, rapid technological change, cyclical market patterns, price erosion and periods of mismatched supply and demand.

Our forward looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations and may not reflect the potential impact of any future acquisitions, mergers or divestitures. All forward-looking statements speak only as of the date hereof and are based upon the information available to SMSC at this time. Such statements are subject to change, and the Company does not undertake to update such statements, except to the extent required under applicable law and regulation. These and other risks and uncertainties, including potential liability resulting from pending or future litigation, are detailed from time to time in the Company's reports filed with the SEC. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Other Factors That May Affect Future Operating Results" or "Risk Factors" for a more complete discussion of these and other risks and uncertainties.

SMSC, MOST and MediaLB are registered trademarks of Standard Microsystems Corporation.