SMSC Provides Industry's First ULPI Stand-Alone Transceiver for Hi-Speed USB Industry Specification; Newly Released ULPI Interface Promotes Stand-Alone PHYs for Consumer Electronics Products Requiring Hi-Speed USB.

HAUPPAUGE, N.Y. -- In line with the availability of the UTMI+ low-pin interface (ULPI) industry specification for Hi-Speed Universal Serial Bus (USB) and USB On-The-Go (OTG) transceiver chips, SMSC (Nasdaq: SMSC) today announced its support of the royalty-free ULPI specification through the availability of the Company's USB3300 ULPI stand-alone peripheral, embedded host or On The Go (OTG) transceiver. The USB3300, announced in November 2004, is the industry's first ULPI physical layer transceiver (PHY) to achieve the USB-IF's Hi-Speed certification and is ideal for consumer electronics applications requiring a Hi-Speed USB connection. In addition, the USB3300 has passed the rigorous USB-IF High-Speed OTG Protocol (OPT) test with multiple controller IP cores from industry leaders.

The ULPI specification improves on the legacy UTMI+ controller/PHY interface by dramatically reducing the pin count necessary to incorporate Hi-Speed USB in consumer electronics products. For Hi-Speed OTG applications, the controller/PHY interface is reduced from the 32 pins required with the UTMI+ interface to just 12 pins with the ULPI interface. This eliminates the primary barrier for adoption of stand-alone PHYs in combination with ASICs, SoCs and FPGAs where success hinges on the ability to reduce both the complexity of a design and expense. Additionally, critical to OTG functionality, two primary tests are required by the USB-IF as part of the OPT test -- the Host Negotiation Protocol (HNP) and Session Request Protocol (SRP). Achieving this certification, the USB3300 offers an easier integration path for OTG-enabled devices.

"As a promoter and one of the founding members of the ULPI Working Group, we are delivering breakthrough products for ASIC, SoC and FPGA designers considering the benefits of a stand-alone Hi-Speed USB PHY. As designs migrate towards the 90-nm technology node and beyond, we are seeing a dramatic shift towards utilizing a stand-alone PHY due to complex issues that exist when integrating a transceiver at these densities," said Steve Nelson, Vice President of Marketing - Connectivity Solutions at SMSC. "These designers are now fully empowered to add Hi-Speed USB connectivity to their products while avoiding the risk and cost of trying to integrate 5-volt tolerant analog PHY circuitry. Customers are also looking to SMSC to implement multi-port embedded host expandability via a single ULPI controller and interface, which is expected to further tip the scale in favor of designs leveraging the ULPI interface and the USB3300."

About the USB3300 PHY

The USB3300 features a ULPI-optimized design architecture, eliminating the timing degradation exhibited by competing PHYs that add a ULPI RTL wrapper around a core UTMI+ PHY. It also features the industry's best Hi-Speed eye diagram, optimized throughout SMSC's broad family of Hi-Speed USB products. In combination with the PHY's timing advantages, this translates into maximum manufacturing margin for customers of Hi-Speed USB controller/PHY systems. It can be designed either into systems with native ULPI controller cores or with UTMI+ controller cores utilizing a ULPI controller wrapper. With the industry's lowest power consumption and smallest package design, which is at least 60 percent smaller than its UTMI+ counterparts, the USB3300 is a matchless solution for portable consumer electronics products such as cellular phones, PDAs, MP3 player, digital still and video cameras and portable media players.

Nelson further commented that since the USB3300 PHY's first-to-market introduction, it has already been integrated into several consumer electronic platforms as designers have realized the performance benefits resulting from the adoption of a stand-alone solution in aggressive geometry designs.

Availability & Pricing:

The USB3300 is available in a 5mm x 5mm x 0.9mm 32-pin QFN package. Qualification samples and production quantities of the SMSC USB3300 are available today. Pricing is $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 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, High-Speed USB and other high-speed serial communications.

SMSC is headquartered 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 of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.