Zilog Ships Low-Cost Internet Television Appliance for the Home and School.

CAMPBELL, Calif.--(BUSINESS WIRE)--Nov. 3, 1997--Zilog, Inc. (NYSE:ZLG) announced today production shipment of their new low-cost Internet Television Appliance (ITA).

The ITA ships with a remote control device; a wireless keyboard is also available at an additional cost. The ITA, together with the remote, are now shipping for less than $250.

Zilog is a leader in bringing low-cost Internet Appliances to the home and schools. Chuck Robbin, Zilog's director of Internet Television Appliances, commented that the ITA was the result of years of hard work with televisions, cable set-top boxes, and infrared remote control. "Zilog has a long history in the consumer market, so it seemed a natural progression to develop a product that will bring the world-wide web into the home through the most comfortable medium." The product is light- weight, has an attractive interface, and is easy to set up and install. As such, it is a much better solution than an expensive personal computer.

The ITA offers users the ability to access the world-wide web and send and receive emails all from the comfort of your living room or classroom. "Children won't be required to sit in front of a PC with a 13" monitor; instead, they can sit around a table and look at a large screen TV," said Robbin. "The use of the television as a viewing screen means that a large group of children can view the activity at one time; a perfect application for schools." For people at home who want the ability to send and receive emails (compared to expensive phone calls or letters that take days through the postal service), the TV is a medium well established and comfortable. For $250 - plus the cost of the internet service - you are ready to surf. No expensive personal computer or software to buy, only the Zilog ITA.

Native American students attending schools on selected Indian reservations will have a unique opportunity to test drive Zilog's Internet Television Appliance in the next few weeks. Working with Projectneat, a leading non-profit organization focused on providing Internet equipment to under-served schools, Zilog will connect over 180 schools on Indian reservations to the world-wide web. These are schools which would not otherwise have access. Under the support and direction of the U.S. Bureau of Indian Affairs, Zilog and Projectneat are providing teachers and administrators the training necessary to utilize this powerful teaching tool as well as the equipment to get them on the world- wide web. This will be done free of charge to the schools. Additional units of Zilog's ITA will make its way to disadvantaged areas of the Appalachian region. Zilog is also providing an ITA agreement for all schools.

About Zilog

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 at http://www.zilog.com.

About Projectneat

Projectneat is an independent, non-profit organization dedicated to providing Internet access to schools. The organization is focused on providing Internet equipment to schools which would not otherwise have access. Founded in July 1996, Projectneat is based in Santa Clara, California. Additional information about Projectneat can be found on the worldwide web at http://www.projectneat.org, or by calling [phone].

CONTACT: Zilog, Inc.

Roberta Bartlett, 408/370-8246

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