Silicon Laboratories Introduces Industry's Smallest, Highest Performance GSM/GPRS Quad-Band Transceiver; Aero II Transceiver Simplifies Design, Lowers BOM.

Business Editors/High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--June 7, 2004

Silicon Laboratories Inc. (Nasdaq:SLAB) today announced the Aero(TM) II GSM/GPRS transceiver, the industry's smallest, highest performance RF transceiver for cellular handsets. Compared to competing solutions, the Aero II single-chip transceiver reduces component count and board space by half, making it the most integrated quad-band GSM/GPRS transceiver available. Silicon Laboratories continues to offer market-leading integration and performance with the Aero II transceiver, which enables handset manufacturers to significantly reduce the bill-of-materials (BOM) while easing the design and manufacturing process.

The Aero II transceiver is the third generation of Silicon Laboratories' proven Aero transceiver family, which has shipped into tens of millions of GSM/GPRS handsets worldwide. By implementing the Aero II transceiver in a standard 0.13-micron CMOS process, Silicon Laboratories was able to design the industry's most integrated single-chip transceiver in a tiny 5 x 5 mm package. With the addition of a receive SAW filter bank, the Aero II transceiver implements an entire quad-band radio, excluding the power amplifier and antenna switch, in an area less than 1.0 cm2 using only five components: Aero II transceiver, crystal, SAW filter bank and two standard bypass capacitors.

"The Aero II transceiver raises the bar for the industry by not only simplifying the design process but also by further improving both the receive and transmit path performance over our previous industry-leading performance," said Ed Healy, vice president of Silicon Laboratories. "The third generation of the Aero family further demonstrates our commitment to reducing board space and improving performance and is a fundamental building block that will support customers as they plan their EDGE offerings."

Based on the company's patented technology and CMOS design innovation, the Aero II transceiver integrates all sensitive components including RF and IF voltage-controlled oscillators (VCOs), VCO tuning components, loop filters and clock coupling capacitors. This integration simplifies design and ensures consistent performance for customers seeking turnkey RF designs. The Aero II transceiver supports the use of a VC-TCXO module and provides the additional integration of a proven digitally-controlled crystal oscillator (DCXO) that enables the use of a standard 26 MHz crystal to provide the transceiver reference clock, thereby reducing the handset BOM.

Silicon Laboratories' Aero transceiver products use a software-programmable universal baseband interface allowing handset designers to implement the transceiver with all leading basebands. The Aero transceivers are also fully compliant with GPRS Class 12 requirements, providing high-speed data communications to the mobile computing environment.

Pricing and Availability

The Aero II transceiver is available in a compact 5 x 5 mm 32-pin micro leadframe package (MLP). Pricing begins at $4.94 in quantities of 10,000. The Aero II transceiver is sampling now, and an evaluation board is available for $250.

Silicon Laboratories Inc.

Silicon Laboratories Inc. is a leading designer of high-performance, analog-intensive mixed-signal integrated circuits (ICs) for a broad range of applications. Silicon Laboratories' diverse portfolio of highly integrated, patented solutions is developed by a world-class engineering team with decades of cumulative expertise in cutting-edge mixed-signal design. The company has design, engineering, marketing, sales and applications offices throughout North America, Europe and Asia. For more information about Silicon Laboratories please visit www.silabs.com.

Cautionary Language

This press release may contain forward-looking statements based on Silicon Laboratories' current expectations. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Silicon Laboratories believes that it is important to communicate the company's future expectations to investors. However, there may be events in the future that Silicon Laboratories is not able to accurately predict or control. For a discussion of these and other factors that could impact Silicon Laboratories' financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to Silicon Laboratories' recent filings with the SEC, particularly the Form 10-K filed January 26, 2004, and the 10-Q filed April 26, 2004.

Note to editors: Silicon Laboratories, Aero and the Silicon Laboratories logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.

Note to editors: The "2" in "cm2" is a superscript. It was changed for transmission purposes only.