SMSC's MOST50 Technology Doubles the Bandwidth for Automotive Multimedia Networking and Supports an Electrical Physical Layer; MOST50 Paves Way for New Applications in Multi-Channel Audio and Video in Cars.

HAUPPAUGE, N.Y. -- SMSC (Nasdaq: SMSC) today introduced a full line of MOST50 products that doubles the bandwidth available for automotive infotainment applications utilizing the MOST(R) (Media Oriented Systems Transport) standard from 25 Mbit/second to 50 Mbit/second. In addition to delivering this significant speed enhancement to the market, this new product line offers transmission over an unshielded twisted pair (UTP) of copper wires. This delivers greater flexibility to car makers that design in-vehicle networks from more of a plug-in, component approach.

SMSC's MOST50 technology enables higher performance in-car multimedia systems and allows multi-channel DVD players, satellite receivers, digital A/V players, digital storage devices, telematics systems and emerging rear seat entertainment applications to operate over a single plastic optical fiber (POF) or an unshielded twisted pair of copper wires.

SMSC's new MOST50 intelligent network interface controller (INIC) OS81082 features a special signal processing technology known as ePHY, which enables it to communicate over shielded or unshielded copper cables, in addition to POF. To date, only signals with merely more than one Mbit/second have been transported over unshielded cables in the radiation-sensitive environment of cars in production today. With ePHY, SMSC's new MOST50 intelligent network interface controllers (INICs) succeed in sending a signal over the cables that is 50 times faster than current implementations. SMSC's ePHY technology is attractive to auto makers because of its low cost and the seamless integration with the manufacturing processes they deploy. Auto makers can continue to use existing electrical cables and connectors with MOST50 ePHY technology. They do not need to introduce optical cables, which had previously been the only possible method for transporting high data rates cost effectively in a car without violating the car makers' EMC radiation limits.

"With MOST50, we have two major achievements: one, the doubling of the bandwidth for new video-intensive applications and two, the availability of an electrical implementation. To date, MOST has been widely adopted by European automotive makers whose manufacturing processes are 'systemic' and for whom a plastic optical fiber physical layer works well," said Christian Thiel, Vice President and Managing Director of SMSC's Automotive Infotainment Systems product line. "However, Asian and American auto makers approach manufacturing from more of a component perspective, so for them a copper electrical implementation is more appropriate. Now we can offer both solutions."

SMSC's ePHY technology conforms to the specifications approved by the MOST Cooperation, the consortium that was established in 1998 by BMW, DaimlerChrysler, Harman-Becker, and OASIS SiliconSystems (acquired by SMSC last year), to promote MOST technology as a common standard for multimedia networking. The consortium currently includes 16 vehicles manufacturers, including Audi, BMW, DaimlerChrysler, Hyundai, Saab and Volvo, as well as over 60 automotive suppliers. The working group specifying the requirements for an electrical physical layer of MOST is headed by Toyota Motor Corporation, which is also a member of the MOST Cooperation.

Following MOST's introduction in the BMW 7 Series in 2001, it is now used in approximately 40 vehicle models serving most of the industry's leading European automakers. With MOST50, SMSC is delivering the second generation of MOST technology. SMSC's MOST50 products include the MOST50 INIC OS81082 with a MediaLB interface, which provides simple access to the MOST bus; the MOST50 INIC Evaluation Platform, a complete NetServices software stack, which allows any multimedia application to access all data transport mechanisms on a MOST network, and a complete set of development tools, such as the OptoLyzer G2 3050. For more information on specific products, test equipment and development tools, please visit: 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 mobile and desktop PCs, servers, consumer electronics, automotive infotainment and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal PC system controllers, non-PCI Ethernet, ARCNET, MOST 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, the effects of changing economic conditions domestically and internationally and on our customers; changes in customer order patterns, our relationships with and dependence on customers and growth rates in the personal computer, consumer electronics and embedded and automotive markets and with 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" for a more complete discussion of these and other risks and uncertainties.

SMSC and MOST are registered trademarks of Standard Microsystems Corporation.