Silicon Laboratories Introduces the Industry's Smallest, Highest Performance Single-Chip Ethernet Controller; CP220x Simplifies Addition of Embedded Ethernet Connectivity.

AUSTIN, Texas -- Silicon Laboratories Inc. (Nasdaq:SLAB), a leader in high-performance, analog-intensive, mixed-signal ICs, today announced the CP220x, the industry's smallest and highest performance single-chip Ethernet controller addressing today's most widely deployed local area network (LAN) technology. By reducing the amount of board space required by up to 90 percent and minimizing the overall system cost and complexity, the CP220x enables designers to easily add embedded Ethernet connectivity to a broad range of products including POS terminals, access control devices, security panels, VoIP adapters, vending machines, appliances, industrial monitoring and control devices or any other product that is in proximity to an Ethernet network. E[acute accent]Available in a small 5 x 5 mm package, the CP220x includes an integrated IEEE 802.3-compliant 10 Base-T Ethernet MAC and PHY and 8 kB of on-board Flash memory that is factory preprogrammed with a unique 48-bit MAC address to eliminate the serialization step from the product manufacturing process of most

embedded systems. The on-board Flash can be used to store user constants and web server content or as general-purpose non-volatile memory. E[acute accent]By implementing a high-performance parallel external memory interface with an operating speed of up to 30 Mbps, the CP220x allows the companion MCU to execute stack or other code much more efficiently since less time is spent in communication. The new device is capable of operating from -40 to +85 degrees while consuming only 70 mA, or as little as one-third the current of competing devices. The CP220x also supports auto-negotiation, which often is the only mechanism available to the user to inform the network of the controller's complete Ethernet capabilities. Without this mechanism or user control of the switch, the relevant network segment will default to its lowest common capability resulting in a lower bandwidth communication solution. E[acute accent]"Due to the ease-of-use and low maintenance costs, Ethernet has become broadly used in applications as varied as facilities management and utility and vending machine monitoring," said Derrell Coker, vice president of Silicon Laboratories. "As the industry's smallest, highest performance embedded Ethernet controller, the new CP220x simplifies our customers' task of adding embedded Ethernet capability to any product that has access to an Ethernet network." E[acute accent]Silicon Laboratories offers an Ethernet development kit that provides all of the hardware and software necessary to develop real-world embedded Ethernet solutions with the CP220x. Included in the kit is a C8051F120 MCU target board, a CP2200-based Ethernet development board, a USB debug adapter and all necessary cables to debug the MCU and connect it to an Ethernet network. The CMX Micronet TCP/IP protocol stack, which was developed specifically for embedded processors, is included in an easy-to-use library format. A TCP/IP configuration wizard is provided to generate a highly customized library optimized for user-selected protocols. This wizard generates both the framework code required to use the library and a project file that can be managed within the Silicon Laboratories Integrated Development Environment (IDE). The Ethernet Development Kit is available for $199 at www.silabs.com/ethernet.

E[acute accent]Pricing and Availability

E[acute accent]The CP220x is available in a 5 x 5 mm 28-pin quad flat no-lead (QFN) package or a 48-pin thin quad flat package (TQFP). Pricing for the CP220x family begins at $3.32 in quantities of 10K. Samples are available now with production quantities available beginning in Q2 2006.

E[acute accent]Silicon Laboratories Inc.

E[acute accent]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.

E[acute accent]Cautionary Language

E[acute accent]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-KA filed April 25, 2005 and the 10-Q filed January 25, 2006.

E[acute accent]Note to editors: Silicon Laboratories and the Silicon Laboratories logo are trademarks of Silicon Laboratories Inc. All other product names noted herein may be trademarks of their respective holders.