Ease-of-Integration and Robust Noise Rejection Technology Mark SMSC’s Entrance into the Capacitive Sensor Market

SMSC (NASDAQ: SMSC), a leading semiconductor company that provides Smart Mixed-Signal Connectivity™ solutions, today announced a new line of capacitive sensors featuring its proprietary RightTouch™ technology. Addressing the needs of system designers, the seven-member family sets a new standard in its ability to simplify development and improve noise immunity in a variety of products including notebook computers, LCD monitors, printers and household appliances. The capacitive sensor family is made up of the CAP1014, CAP1088, CAP1066, CAP1028, CAP1026, CAP1006 and CAP1005, which provide systems with a wide variety of slider, button, proximity and LED driver functionality.

Unlike commonly used microcontrollers that have no set identity and complicated programming processes, SMSC’s new capacitive sensor family is a dedicated register-based solution, with an easy three-step tuning process that does not need flash memory preprogramming. As a result, this application-specific family enables system designers to get to market quickly while keeping product development costs down. Additionally, each member of the RightTouch family comes standard with world-class 8kV ESD protection. Increased ESD coverage is required to protect against external environmental elements; most competitive solutions ship today with only 2kV protection, putting sensor technology at risk.

"SMSC is a proven leader in connectivity solutions. With the introduction of capacitive sensing technology, SMSC is expanding its industry position by addressing the connection between people and systems,” said Mark Beadle, Vice President and General Manager of SMSC’s Analog Product Line. "Using its analog expertise, SMSC designed the RightTouch family to improve upon the deficiencies of other capacitive sensing solutions on the market by providing a robust solution with respect to system noise and ease of use.”

The RightTouch architecture inherently rejects analog noise which yields a higher signal-to-noise ratio and makes fine-tuning touch thresholds easier. This family of devices has been created to minimize noise from inverters, DC-DC switching regulators and wireless frequencies. As a result, small changes in capacitance can be better detected, results analyzed and determinations made as to whether or not a touch took place. Devices with poor inherent noise rejection require additional digital filtering algorithms to be programmed into the microcontroller – adding to design time and resulting in higher costs. This higher level of noise performance enables SMSC devices to be used as proximity detectors, which detect the small capacitance of an approaching finger, while ignoring other extraneous signals.

Another key feature of RightTouch technology is its ability to constantly adapt to a changing environment. Because different circuit board suppliers and assembly manufacturers have different parasitic capacitance levels among their products, touch thresholds often vary between vendors. In a unique fashion, RightTouch devices compensate for these variances, independent of the manufacturer, thus allowing the presence of multiple suppliers on the same board. In addition, each device has the ability to recalibrate itself over time to compensate for foreign material or contaminants that find their way onto a system. This prevents false touches and maximizes performance.

Availability:

Samples are available today. Production prices will range from $0.75 to $2.00 in 10K quantities.

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, PC and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal embedded 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, commodity prices, interest rates and foreign exchange, potential investment losses as a result of liquidity conditions, the effects of changing economic and political conditions in the market domestically and internationally and on our customers; 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 and MOST are registered trademarks and Smart Mixed-Signal Connectivity and RightTouch are trademarks of Standard Microsystems Corporation.