SMSC Joins the Digital Living Network Alliance, Supports the Digital Transmission Content Protection Over Internet Protocol.

HAUPPAUGE, N.Y. -- Designing for today's digital home appliances, system and system-on-chip (SoC) design architects face interoperability and secure content transfer challenges. Underscoring its commitment to deliver solutions that address these key issues facing SoC designers, SMSC (NASDAQ:SMSC) today announced its alliance with the Digital Living Networking Alliance(TM) (DLNA) as well as its support of the Digital Transmission Content Protection over Internet Protocol (DTCP-IP). These two significant alliances will enable the Company's customers to successfully design next-generation consumer electronics devices.

Meeting the demands for networking technology in the home, SMSC addresses limited bandwidth and distance issues with a solution that distributes multiple high definition (HD) TV streams simultaneously. In a separate release issued today, SMSC announced its LAN9131, the industry's first wired Ethernet multimedia co-processor solution that currently supports DLNA guidelines.

Because authentication and encryption processing have become essential when transferring copyright protected digital content between devices, the LAN9131 multimedia co-processor supports the DTCP-IP. Allowing copyrighted multimedia content to be viewed over a home network while keeping it protected, DTCP-IP has become an industry de facto standard. The DTCP-IP compatible functions provided in the LAN9131 co-processor comprise hardware and encryption firmware circuit blocks as well as content data transfer control.

"We share the common goals of both the DLNA and DTCP-IP guidelines to enable a network of entertainment, computing and communication devices that allows HD digital content to be transferred securely," said Vamshi Kandalla, Director of Marketing for Networking Products at SMSC. "With the LAN9131 co-processor, we can solve important design challenges such as support of multiple HD audio/video streams while delivering time-to-market and lower development risk advantages. As a result, we can essentially serve as a bridge between the PC, broadcast and mobile worlds and provide a better way for end users to manage, view and distribute content in the home."

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 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 is a registered trademark and RipStream is a trademark of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.