SMSC Unveils Industry's First Network Multimedia Co-Processor Addressing the Challenges of Streaming High Definition Media Content.

HAUPPAUGE, N.Y. -- Consumers today are acquiring, viewing and managing a vast amount of digital content and need devices to communicate with each other in order to share content. Today, SMSC (NASDAQ:SMSC) introduced its LAN9131, the industry's first high-performance network multimedia co-processor. Based on RipStream(TM) technology, which combines support of multiple high definition (HD) audio/video (A/V) streams, software protocol stack management and security, this industry first solution delivers time-to-market advantages and reduces development risk for customer designs. Target applications include network-enabled HD TVs, set-top boxes, digital video recorders and home media servers, among others.

The LAN9131 offers support for the leading industry interoperability standards and is the only wired Ethernet co-processor solution to currently support Digital Living Network Alliance(TM) (DLNA) guidelines.

"The LAN9131 multimedia co-processor is a key development in the evolution of SMSC's solutions portfolio," said Johnson Tan, Vice President and General Manager of Connected Home Media at SMSC. "The investments we've made in creating a home multimedia solution that works in conjunction with existing System-on-Chip (SoC) processor environments will enable designers to get to market fast with high-performance systems that support multiple HD streams. The ease of design, low development risk and reduction of overhead make it possible for designers to virtually 'plug in' the system while still adopting key functionality such as encryption/decryption."

Built for high performance and flexibility, the LAN9131 leverages the 32-bit ARM926(TM) core to offload the main SoC's high TCP/IP processing burden while supporting multiple HD A/V streams with what are currently the best available Fast Ethernet data rates. The main SoC can now partition out CPU intensive networking, interoperability and content-protection functions to the LAN9131 co-processor, allowing the SoC to focus its finite resources on core multimedia and user interface applications.

Additional offloading from the main SoC is achieved through the LAN9131's implementation of two dedicated bi-directional Transport Stream Interfaces (TSIs). This enables the multimedia co-processor to assign both audio and video packets without interfering with the main SoC's system bus. Also, the LAN9131's hardware-based AES-128 function block greatly accelerates Digital Rights Management (DRM) content protection schemes such as Digital Transmission Content Protection over Internet Protocol (DTCP-IP) and Windows(R) Media DRM (WMDRM 10) without burdening the main SoC.

The support of DLNA and associated content-protection standards such as DTCP-IP and WMDRM 10 is an important cornerstone to the Company's ability to serve consumer electronics applications, especially in an environment where devices are increasingly becoming networked and expected to share encrypted high definition content.

Key Features:

--Device is video codec agnostic: can support MPEG2, MPEG4, WMV9/VC-1, H.264/AVC

--Audio & Video streaming over Ethernet with support for multiple HD streams

--Support for UPnP protocols: HTTPU, HTTPMU, GENA, SOAP, XML and SSDP 

--SMSC custom API run-time libraries and drivers for host CPU communications

--Easily interfaces to most 32- and 16-bit Embedded CPU busses

--Embedded Linux OS with full support for networking applications

--Integrated 10/100 Ethernet MAC/PHY

--256-pin XTQFP

Availability:

The LAN9131 engineering samples are available today. Qualification samples are expected to be available in December 2006 with mass production samples in the first quarter of calendar 2007.

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 within 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" or "Risk Factors" 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.