New Z8 GP 8-Bit Microcontrollers From ZiLOG Offer Significant Improvements in Cost and Power Efficiency.

SAN JOSE, Calif. -- New Chip Family to Include Most Popular Memory Sizes, Broad Range of Pin Packages and Optimum Power Performance for a Wide Array of Applications

ZiLOG(R) (Nasdaq:ZILG) the creator of the Z80(R) microprocessor and a leading supplier of 8-bit microcontrollers today announced the release of a new family of microcontrollers that achieves significant improvements in cost and power efficiency. ZiLOG says these improvements will open up a new wave of applications that will benefit immediately from these new one-time programmable (OTP) microcontrollers, particularly in the greater China market. Based on its popular Z8(R) CISC architecture, the new ZGP323 family of products offer a comprehensive collection of OTP microcontrollers to the general purpose market which are among the lowest cost and most power efficient offering in its class.

Embedded control in applications such as general purpose, toys and handheld battery operated devices continue to demand cost-effective, 8-bit solutions that offer designers flexibility in terms of memory options, pin count and, most importantly, low power consumption. This new power efficient, low cost, Z8 GP(TM) family offers customers a broad range of memory sizes, voltage options, and package pin counts.

ZiLOG believes that this new product family will reduce the cost of ownership across a variety of applications including automotive, home appliances, educational toys, handheld battery powered devices, industrial control, consumer electronics, communications, lighting control, wireless switches and chimes, and other applications that require high switch, low power, cost efficient I/O devices.

"This is an exciting introduction for us since it offers our customers a best in class product that meets all their requirements," said ZiLOG's Ramesh Ramchandani, senior vice president of marketing. "By combining the enhanced performance, low power usage and low cost with the extended functionality and high number of compatible peripheral options that the ZGP323 provides, ZiLOG will open up new market opportunities for its customers, particularly in the consumer electronics and industrial control arenas. We see the launch of the Z8 GP(TM) family as integral to ZiLOG's business strategy, not only in established markets such as the US and Europe, but particularly in emerging markets like the greater China region and India -- areas that are rapidly gearing up for greater use of consumer products."

"Our focus is to provide innovative embedded control solutions and with this latest upgrade to the Z8 we are expanding our product offering and targeting applications where power efficiency and cost are critical to the design-in decision," commented James Thorburn, ZiLOG CEO.

Research figures from Semico Research Corporation, published in its Market Update August 2004, certainly add weight to ZiLOG's position. Semico predicts that the total global value of the 8-bit microcontroller market will climb from just under $US4 billion in 2002 to $US5.8 billion by 2008. For the period 2003 - 2008, Semico expects the unit growth in the 8-bit market to be at a compound annual growth rate of 8.1 per cent per year. Rapidly emerging markets, such as China, are set to play a significant role in the growth of the semiconductor and microcontroller markets, particularly in this 8-bit sector.

Pricing and Additional Applications

The new Z8 GP(TM) family comes in 4k, 8k, 16k, and 32k memory sizes, with 20-, 28-, 40- and 48-pin varieties available. Packages include CDIP, PDIP, SOIC and SSOP. The ZGP323 OTP version is priced from $US0.90 - $US1.20 per unit (depending on quantities ordered) and are immediately available for order via ZiLOG's network of global distributors. For further information, log onto www.zilog.com.

The ZGP323 is launched alongside ZGR323L and ZGR163L ROM devices, making the family ideal not only for mass production but also for use in educational facilities for research and development and even by the hobbyist market. The key advantages of the new devices are ultra low cost, a large operating voltage range (from 2.0 - 5.5V), standard, extended and automotive temperature ranges, and a rich set of features including 4kb - 32kb OTP memory, 237 bytes of general-purpose RAM, up to 32 GPIO and low power consumption. The new devices offer ease of use and design because they are based on the familiar CISC architecture.

Although the Z8 GP's low power consumption and low operating voltage make it ideal for markets such as home appliances and battery operated applications, the extended and automotive temperature ranges also open the door to many different industrial applications as well.

Product Features and Competitive Comparison

Compared to similar chipsets from Philips, Microchip and Holtek, the Z8 GP(TM) outperforms on price, memory size, RAM, and voltage range (see chart below).

Mfr.    Part #   Memory GPIO RAM   Voltage Application    Packages
                   Size              Range
------- --------- ------ ---- ----- ------- ----------- --------------
ZiLOG   ZGP323    4k-32k  32  237    2.0v-  General     CERDIP, PDIP
                   OTP        bytes  3.6v   purpose,    SOIC, SSOP
                                     2.0v-  appliances,
                                     5.5v   automotive
                                            and most
                                            battery
                                            operated
                                            handheld
                                            devices
                                            and more
------- --------- ------ ---- ----- ------- ----------- --------------
Philips P87LPC764  4k     18   128  2.7v-   Appliances, PDIP, SOIC,
                   OTP              6.0v    automotive  SSOP
------- --------- ------ ---- ----- ------- ----------- --------------
Micro-  PIC16C5X  0.5-2k  20    73  2.5v-   Battery     CERDIP, PDIP
chip               OTP              5.5v    powered     SOIC, SSOP
                                            operation
------- --------- ------ ---- ----- ------- ----------- --------------
Micro-  PIC16C717 2k-4k   15   256  2.5v-   Fan         PDIP, SOIC,
chip               OTP              5.5v    controller  SSOP
                                            for
                                            routers/
                                            switcher
------- --------- ------ ---- ----- ------- ----------- --------------
Holtek  HT48x     0.5k-   13    64  2.2v-   Door        PDIP, SOIC,
        Series     2k               5.5v    Chimes,     SSOP
                   OTP                      w/less
                                            AC outlet,
                                            toys
------- --------- ------ ---- ----- ------- ----------- --------------

ZiLOG Continues to Support its Design Community with the Best Programming Support

At the same time as the launch of the Z8 GP family, ZiLOG reinforced its strong commitment to the design community and the 8-bit market by offering two development kits for design support needs. The first is ZiLOG's ZDS II integrated development environment and a windowed CDIP device -- a low-cost programmer, which contains an OTP programming module; the second is a complete In-Circuit Emulator, which allows users to fully emulate the development environment and debug in real-time. Additional resources available in each kit include user manuals, a quick start guide and application notes.

About ZiLOG, Inc.

ZiLOG, Inc. (Nasdaq:ZILG) Founded in 1974, ZiLOG won international acclaim for designing one of the first architectures in the microprocessors and microcontrollers industry. Today, ZiLOG is a leading global supplier of 8-bit micro logic devices. It designs, manufactures and markets a broad portfolio of devices for embedded control and communication applications used in consumer electronics, home appliances, security systems, point of sales terminals, personal computer peripherals, as well as industrial and automotive applications. ZiLOG is headquartered in San Jose, California, and employs approximately 520 people worldwide with sales offices throughout Asia, Europe and North America. For more information about ZiLOG and our products, visit the Company's website at: www.ZiLOG.com.

ZiLOG, Z80, Z8 GP, ZGP323, Z8GR323 and Z8 GR163 are trademarks or registered trademarks of ZiLOG, Inc. in the United States and in other countries. Other product and or service names mentioned herein may be trademarks of the companies with which they are associated.

This release contains forward-looking statements (including the statements about the potential cost reductions customers can obtain from using the new Z8 GP and its strategic importance to the company) relating to expectations, plans or prospects for ZiLOG, Inc. that are based upon the current expectations and beliefs for ZiLOG's management and are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For example, if a competitor were to introduce a competing product it could adversely affect use of the Z8 GP in emerging markets. ZiLOG does not expect to, and disclaims any obligation to, update such statements. ZiLOG, however, reserves the right to update such statements or any portion thereof at any time for any reason.

For a detailed discussion of the cautionary statements which could impact our expectations, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commissions ("SEC"), including but not limited to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2003, and any subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval System (EDGAR) at http://www.sec.gov or from the Company's website at www.ZiLOG.com