SMSC USB3280 UTMI PHY Optimized for Cell Phone & PDA Designs Enabled by Intel XScale(R) Technology; Reference Design Opens Door to Smart Device Market for SMSC's PHY Solutions.

SAN FRANCISCO -- Offering the industry's broadest family of Hi-Speed USB stand-alone physical layer transceivers (PHYs) covering the range of SIE/PHY interface standards, SMSC (Nasdaq: SMSC) today announced at the Intel Developer Forum in San Francisco that its USB3280 UTMI stand-alone transceiver has been optimized to support Intel's newest processor family (codenamed Monahans) based on the third generation Intel XScale(R) architecture.

Covering the range of SIE/PHY interface standards, SMSC's family of Hi-Speed USB PHYs provides customers with a migration path that offers continued support for the Intel XScale(R) architecture. With the introduction of multimedia rich features in cell phones and PDAs, Hi-Speed USB connectivity has become a necessity to support the high data transfer rates that consumers demand. With the industry's smallest stand-alone UTMI PHY, backed by USB-IF Hi-Speed USB certification, the USB3280 complements the Monahans Platform Family to provide customers with a proven Hi-Speed USB solution.

"SMSC's USB3280 USB PHY is a key ingredient to the Monahans Platform family and targets handset designers wishing to integrate high-speed USB within a very small footprint," said Mark Casey, General Manager of Intel's Applications Processor Business Unit.

"We are excited that SMSC's USB3280 UTMI PHY has been optimized to support the next-generation Intel XScale technology, the Monahans platform family," said Steve Nelson, Vice President of Marketing - Connectivity Solutions at SMSC. "We believe this reference design will establish a new industry standard for application processors that address full-featured cell phones and PDAs. We look forward to working together with Intel to continue to provide our mutual customers best-in-class Hi-Speed USB solutions."

SMSC's USB3280 mini UTMI stand-alone PHY, announced last March, supports the 8-bit bi-directional UTMI SIE/PHY interface, and provides a reduction of 20 pins and a footprint reduction of more than 40% compared to existing solutions. As a result, discrete USB transceiver implementations are optimized to support device functionality. The USB3280 is available in a 6mm x 6mm x 0.9mm 36-pin QFN package.

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, Hi-Speed USB and other high-speed serial communications.

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