SMSC Delivers Broadest Portfolio of USB2.0 Hub, Card Reader & PHY Controllers; Expanded Product Family Offers Unparalleled Suite of Industry's Highest Performance and Most Cost-Effective Solutions.

SAN FRANCISCO -- INTEL DEVELOPER FORUM--With the goal of enabling consumers to enjoy digital content anywhere, anytime and on any device, SMSC (NASDAQ: SMSC), a leading semiconductor Company delivering innovative system solutions spanning analog, digital and mixed-signal technologies, today unveiled at The Intel Developer Forum in San Francisco five new USB2.0-based products, broadening its USB2.0 product offering. In particular, the Company now offers the market the most comprehensive, highest performing line of USB2.0 hub controller products for a wide range of consumer and commercial connectivity applications.

As part of today's announcement, SMSC is rounding out its line of hub controller devices to complement its current 4-port product and the recently introduced USB2502 2-port hub controller with the introduction of its 3-port, second generation 4-port and 7-port hub controllers, most marking industry firsts. In addition, SMSC is introducing a controller for 12-in-1 flash card readers; plus a second generation USB2.0 physical layer transceiver (PHY) to complement a line of existing USB2.0-based devices designed to enable faster, higher-performance functionality of end-user connectivity applications.

"The proliferation of multimedia and consumer electronics devices is creating a need for a vast number of applications to interconnect consumer and computing products, whether through flash cards, pen drives or other multimedia storage," said Steve Nelson, Vice President of Marketing - Connectivity Solutions at SMSC. "SMSC is driving cross-equipment connection by delivering flexible, high-performing solutions that can be more easily implemented at a lower cost in digital home and enterprise products. In particular, the performance and cost benefits that we are delivering in our broad line of USB2.0 hub controllers, most of which represent industry-first products, are further establishing SMSC as a leading provider of the widest range of solutions for this market on a global scale."

On June 7, 2004, SMSC introduced the USB2502, the industry's first 2-port hub controller targeting applications where the primary system requirement is to double the available number of USB2.0 ports. By utilizing a 2-port expansion option, designers have fewer components to wire and configure, resulting in a lower bill of materials cost. As a USB 2-port hub implementation, the USB2502 hub controller architecture uses only 36 pins, which makes it approximately a third of the size of competing controllers. This area reduction is critical as designers are faced with smaller form factors demanded by the consumer market. Today, the Company rounds out its family of USB2.0 hub controllers with its innovative MultiTRAK(TM) multiple Transaction Translator (Multi-TT) architecture. The new USB2503 3-port, USB2504 4-port and USB2507 7-port hub controllers, all utilizing MultiTRAK technology, effectively deliver the market's most cost-effective, power-efficient and space-conserving family of USB2.0 port expansion solutions.

Also introduced today is SMSC's USB2228, a fourth generation USB2.0 flash media card reader controller. SMSC's USB2228 card reader controller is the industry's first device supporting 12 different formats. Leveraging this leadership position, the new card reader controller delivers robust flash card compatibility and the lowest power consumption while bringing new levels of integration and cost reductions to better meet consumer demands both in the office and at home. More specifically, the USB2228 offers bill-of-material cost improvements through the integration of three card-power MOSFETS for cost savings of up to $0.60.

Through products like these, SMSC is supporting the technological advancements made by consortium groups such as The Camera and Imaging Products Association (developers of the PictBridge standard), whose charter is to create a standard to provide direct connect solutions for imaging input and output devices, thereby enabling design engineers to deliver devices that easily interact to simplify operation and to share content.

A full list of SMSC's USB2.0 solutions and performance data is available at http://www.smsc.com/main/catalog/usbprods.html.

Advanced Internal Infrastructure - MultiTRAK

With the advent of digital technology being shared between many consumer devices such as MP3 players, TVs, PCs and DVDs alike, the speed at which data moves is critical. And, based on its innovative MultiTRAK Multi-TT architecture, SMSC's high-performance USB2.0 hub controllers are better able to address the level of system performance and cost. The Company's MultiTRAK technology dedicates a pipeline for every downstream full- and low-speed device connecting into a hub, enabling designers to implement, and end users to experience, up to 110 percent boost in full-speed data throughput compared to hub controllers that use a single-TT system.

These new devices are enabled by SMSC's latest PHY technology. The SMSC stand-alone PHY family is the industry's first to be built on a 0.18-micron CMOS process to better implement a power-efficient analog USB2.0 transceiver design, which meets the most stringent system environments. As a result, designs for mobile computing and other portable small form factor systems can take advantage of up to a 60 percent reduction in power consumption, and up to a 55 percent reduction in printed circuit board area savings, as compared to existing solutions.

SMSC's stand-alone PHY family is leveraged throughout SMSC's broad portfolio, as well as being marketed as a standalone product for both ASIC and SoC designers. The USB3250 PHY is an essential building block enabling SMSC's own designs to address customer challenges for power and size. As a standalone product, the USB3250 PHY allows developers to position the PHY externally in their designs to support faster time-to-market for high-speed product designs, crucial for those products targeted for the consumer market.

Specification, Pricing and Availability

USB2503 USB2.0 Hub Controller

--Three downstream USB2.0 ports

--Three Transaction Translators utilizing SMSC's MultiTRAK technology

--3.3 Volt (V) I/O with 5V input tolerance

--48-pin QFN 

--Samples available now, production volumes in November

--$3.00 per unit (U.S. list price) in 10K quantities

USB2504 USB2.0 Hub Controller

--Four downstream USB2.0 ports

--Four Transaction Translators utilizing SMSC's MultiTRAK technology

--3.3V I/O with 5V input tolerance

--64-pin TQFP 

--Shipping now

--$4.00 per unit (U.S. list price) in 10K quantities

USB2507 USB2.0 Hub Controller

--Seven downstream USB2.0 ports

--Seven Transaction Translators utilizing SMSC's MultiTRAK technology

--3.3V I/O with 5V input tolerance

--80-pin QFN

--Samples available in October, production volumes in December

--$7.00 per unit (U.S. list price) in 10K quantities

USB2228 USB2.0 Flash Media Card Reader Controller

--Complete format support with SmartMedia(TM) (SM), Memory Stick PRO (MSPRO), Memory Stick (MS), High Speed Memory Stick (HSMS), Secure Digital (SD), MultiMediaCard(TM) (MMC), NAND Flash, Compact Flash(TM) I and II (CF) and CF form-factor ATA hard drives (Microdrive)

--128-pin TQFP and 100-pin TQFP

--Low power at 62mA

--Supports USB bulk only mass storage compliant bootable BIOS

--Sampling in calendar fourth quarter

--$4.00 per unit (U.S. list price) in 10K quantities

USB3250 USB2.0 UTMI PHY

--USB-IF "Hi-Speed" certified to USB2.0 electrical specification

--Supports 480Mbps (HS) and 12Mbps (FS) serial data rates

--Low HS current consumption at 72mA

--56-pin QFN

--Shipping now

--$2.00 per unit (U.S. list price) in 10K quantities

About SMSC

Many of the world's most successful global technology companies rely upon SMSC as a go-to resource for integrated circuits and semiconductor system solutions that span analog, digital and mixed-signal technologies. SMSC delivers products that solve the challenges of space, cost and time-to-market for high-speed computing, connectivity and embedded networking applications.

SMSC addresses computing, communications and consumer electronics markets through world-leading positions in Input/Output and non-PCI Ethernet products; innovations in USB2.0 and other high-speed serial solutions; and integrated networking products employed in a broad range of applications. Leveraging substantial intellectual property and a comprehensive global infrastructure, SMSC thrives at the intersection of silicon, software and customized OEM applications. SMSC is based in Hauppauge, New York with operations in North America, Taiwan, Japan, Korea, China and Europe. Engineering design centers are located in Arizona, New York and Texas. 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 include the timely development and market acceptance of new products; the impact of competitive products and pricing; the effect of changing economic conditions in domestic and international markets; changes in customer order patterns, including loss of key customers, order cancellations or reduced bookings; and excess or obsolete inventory and variations in inventory valuation, among others. Such 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.

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. In addition, sales of many of the Company's products depend largely on sales of personal computers and peripheral devices, and reductions in the rate of growth of the PC and Embedded markets could adversely affect its operating results. SMSC conducts business outside the United States and is subject to tariff and import regulations and currency fluctuations, which may have an effect on its business. All forward-looking statements speak only as of the date hereof and are based upon the information available to SMSC at this time. Such information is subject to change, and we will not necessarily inform you of such changes, except as required by law. 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 is a registered trademark of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.