SMSC Introduces First Integrated Hi-Speed USB Hub and Flash Card Controller to Enable Faster, Simpler Photo Transfer.

HAUPPAUGE, N.Y. -- Getting the right set of digital photography connections to the front panel of a television, PC, or printer can be a difficult mechanical design challenge for equipment manufacturers. Now designers have a simple, cost-effective alternative to using multiple devices when adding the digital photography connections that consumers require. Today, SMSC (NASDAQ: SMSC), a leading semiconductor company delivering innovative system solutions spanning analog, digital and mixed-signal technologies, unveiled its USB2602 Hi-Speed USB hub and 15-in-1 flash media compound device controller. This industry-first solution combines two USB device controllers - flash media and hub - onto one chip. Since the device is USB based and serial cable length can reach five meters, design engineers have more flexibility to physically place digital photography connections where they are easy to access and convenient to use.

Designers of products that interface with digital cameras are faced with several possible photograph transfer methods. By providing single-chip flash memory reader and USB hub port support, SMSC allows designers to use a single USB host port to open the gateway for digital photographs. As digital cameras move to 8.0-megapixels and beyond, Hi-Speed USB flash card readers and Hi-Speed USB hub ports can enhance the user experience by increasing photo transfer speeds by a factor of 1.5 to 5 times, depending on flash media type. By significantly reducing the cost of implementing a USB flash card reader and hub, these valuable interfaces can be offered in lower cost, high-volume products. The three USB hub ports can be used for connections to flash drives, photo CD drives, USB-based wireless connections or PictBridge, which provides a direct connection between any two devices that support the protocol, such as digital cameras and photo printers. Since both interfaces are offered at a much lower cost, the end user benefits from a more useful product.

"The expansion of USB into the consumer device market has driven this integration," said Steve Nelson, Vice President of Marketing - Connectivity Solutions at SMSC. "Many customers already use multiple USB device controllers attached to hubs to address the need for rapid feature additions with low software integration risk. Designers' stringent cost, standardization and ease-of-use requirements are driving a need for an integrated product design and SMSC is uniquely positioned with its breadth of Hi-Speed USB capabilities to provide this solution to customers today. By continually expanding the options designers have to add connections for digital photography, we are enabling our customers to design products more rapidly while they gain all of the benefits of higher levels of integration."

Integration Delivers Major Cost Advantages

The integration of two USB controllers delivers a reduction in board space and cost. A board space reduction of 100 square millimeters is realized from the elimination of the second device package alone. Additional board space used by the support components for two USB connections is also eliminated. By using the USB2602 instead of the multi-chip solution, component count is reduced by 30% and the total bill of materials cost is reduced by 20% based on reference designs done by SMSC. Since redundant USB connections are eliminated, the total power consumption is also reduced by 360mW.

The on-chip ROM code for the USB2602 contains all of the latest configuration features, flash specification updates and robust card compatibility that come from the experience SMSC has gained through supporting over 8 million flash media reader units in the marketplace.

Key Features

Hub Controller

--Provides three downstream Hi-Speed USB ports via an internal hub.

--SMSC MultiTRAK(TM) technology - multi-transaction translators for Full Speed/Low Speed devices that are attached.

Flash Media Controller

--On-chip ROM code supports the following formats: SmartMedia(TM), xD-Picture Card(TM), Memory Stick(TM), High Speed Memory Stick(TM), Memory Stick PRO(TM), Memory Stick Duo(TM), Secure Digital (SD), High Speed SD, mini-SD(TM), TransFlash(TM) SD, MultiMediaCard(TM), Reduced Size MultiMediaCard, High Speed MultiMedia Card (4bit) and compatible with all MMC4.0 cards, NAND Flash, CompactFlash(TM) (CF), and CF Ultra(TM) I & II and CF form factor ATA hard drives.

--5Volt (V) input tolerance on 3.3V I/O for VBUS, Port Power and Over-Current Sense pins.

--Capable of operation from the following memory configurations: Internal 64K program ROM or array of ROM code features and hub configuration via external serial EEPROM.

--128 Pin TQFP package (1.0mm height, 14mm X 14mm footprint); RoHS compliant, green, lead-free packaging also available.

--Compatible with Microsoft(R) Windows(R) XP, Windows(R) Me, Windows(R) 2000 SP3, Apple(R) OS10(R), SoftConnex(TM) and Linux Multi-LUN mass storage class drivers.

Availability & Pricing

Samples of the USB2602 are available now with production quantities available later in June. Pricing will be $5.80 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 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 high-growth 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, Hi-Speed USB and other high-speed serial communications.

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, 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 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 or distributors, 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, as well as general industry and market conditions. Reductions in the rate of growth of the PC, consumer electronics, embedded or automotive 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 the Company may not necessarily inform, or be required to inform, investors of such changes. 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, and MultiTRAK is a trademark, of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.