Zilog Selects I-Point Joystick for Internet Appliance.

CAMPBELL, Calif.--(BUSINESS WIRE)--Nov. 3, 1997--Zilog, Inc. (NYSE:ZLG) has selected Varatouch Technology Incorporated's (VTI) I-Point miniature joystick technology for use in their new Internet TV product.

I-Point will be embedded in a wireless keyboard for remote control of the on-screen "mouse" pointer. Zilog's Internet TV Appliance is an inexpensive solution that brings the internet into the living room without the cost or complexity of a personal computer. The addition of the I-Point joystick to the keyboard will give Zilog customers a user-friendly interface with which to send and receive email and navigate the worldwide web.

The I-Point joystick delivers performance, reliability, and cost advantages over other pointer control devices. "Intuitive-ness," however, is I-Point's most significant advantage, especially for wide market applications such as Internet Appliances. "The joystick is a well known input device that is understood and accepted by consumers, from the very young to those not-so-young," said Bruce Pocock, vice president of Varatouch Technology. "It is especially important to give consumers who are new to the Internet, and possibly new to computers, familiar and comfortable controls. Since I-Point is similar to the joystick common to video games, most consumers find the controls natural and feel at home with this new technology."

"Zilog, a leader in bringing low-cost Internet Appliances to the home and schools, is committed to offering our customers the best possible Internet products," commented Chuck Robbin, Zilog's director of Internet Appliances. "Integrating I-Point onto our Internet Appliance keyboard adds real value to our product and to the consumer by allowing complete control from the keyboard." Zilog's Internet Appliance is designed to be easy to install and set up, and offers the additional feature of not being dependent on one internet service provider (ISP). Instead, you can select your own provider and feel satisfied that you are getting the best product AND the best service at no additional costs.

Zilog is an innovator in the development, design, and manufacturing of application specific standard products (ASSPs) for the data communication, peripherals, and consumer product markets. The company utilizes its Superintegration design methodology to combine cores and cells from the company's extensive library of customer-familiar microprocessors, microcontrollers, memory and logic circuits to meet the design, cost and time-to- market requirements of its customers.

Zilog has its headquarters in Campbell, California and had 1996 revenues of $298.4 million. It employs approximately 1,650 people, has 29 direct sales offices, and more than 120 distributor and rep locations worldwide. For more information, please visit the company's website a http://www.zilog.com .

Varatouch Technology Inc. was a pioneer in computer remote controls for presentation and multimedia applications, developing its first commercial product, SilentPartner, in 1987. Today, its mission is to complete worldwide developing, manufacturing and promoting superior, cost-competitive electronic input technologies.

Varatouch is located in Sacramento, California. For further information on I-Point Technology or I-Point products, visit their web site at http://www.varatouch.com, or contact VTI at [phone].

CONTACT: Zilog, Inc.

Roberta Bartlett, 408/370-8246

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