With New USB and Ethernet Products, SMSC Offers The Most Comprehensive Portfolio For A Connected Car

SMSC (NASDAQ: SMSC), a leading semiconductor company providing Smart Mixed-Signal Connectivity™ solutions, today announced that it is now delivering a comprehensive portfolio of automotive connectivity products for a digital car. With the extension of its TrueAuto™ USB and Ethernet product set, SMSC is the only company offering a full suite of automotive technologies that complement the Media Oriented Systems Transport (MOST^®) infotainment backbone. TrueAuto, SMSC’s proven quality process, goes far beyond the stress tests prescribed by the AEC-Q100 specifications, so that products are designed, fabricated, tested, characterized, qualified and supported from the ground up for automotive-grade reliability. With the industry's widest selection of quality ICs, software, tools, reference designs and consulting, SMSC is a one-stop-shop for automotive infotainment connectivity.

Today, SMSC added two new products to its TrueAuto offering—the USB83340, a USB 2.0 UTMI+ low-pin interface (ULPI) transceiver and the LAN89303, a 10/100 3-port managed Ethernet switch. Designed to meet the stringent requirements of the automotive industry, these new products complement the existing TrueAuto suite, which includes a Hi-Speed USB 2.0 hub controller, a USB 2.0 hub/card reader combo, an MII/RMII 10/100 Ethernet transceiver and single-chip 10/100 Ethernet controller, all announced earlier this year. These TrueAuto products join SMSC’s various MOST IC products long used by the automotive industry.

"Car makers need to anticipate rapidly changing consumer behavior to design vehicles that fit their customers’ digital lifestyles,” said Christian Thiel, Vice President and General Manager of SMSC’s Automotive Information Systems group. "USB provides a fast, plug-and-play connection to consumers’ multimedia devices while Ethernet connects the vehicle to the IT infrastructure of service shops for accurate diagnostics and fast software download. MOST provides a reliable backbone within the vehicle to bring these various interfaces together and network the infotainment components that are mounted into the car. SMSC has long-standing experience with all of these technologies to help automotive OEMs select between different connectivity configurations. With highly reliable and widely compatible connectivity solutions and more than a decade of experience supplying the automotive industry, SMSC is a trustworthy partner to the world’s leading car makers and their suppliers.”

As one of the largest and longest-term USB component manufacturers, SMSC has a broad portfolio that ensures compatibility with the bulk of devices that the consumer could possibly bring into the car. To date, SMSC has shipped more than 250 million USB chips and is at the forefront of the USB evolution to SuperSpeed USB, or USB 3.0, which brings significant opportunity for designers to create high-performance, differentiated products for consumers. USB 3.0’s bandwidth and advanced features position the USB hub as the central I/O component for all types of communications within and among media devices, increasing USB ubiquity and value to consumers. SMSC’s goal is to help designers take advantage of the potential of USB 3.0 to allow them to deliver compelling consumer products that are faster, smaller and more energy efficient. As USB 3.0 is deployed in the marketplace, SMSC expects to lead the way in making automotive solutions available that deliver the speed and quality of transmission that consumers expect wherever they connect.

Availability:

Engineering samples of the USB83340 are available now. LAN89303 engineering samples will be available in the first quarter of the 2010 calendar year. Contact your SMSC sales representative today for more information.

About TrueAuto:

SMSC’s TrueAuto quality process goes far beyond the typical automotive quality standards. Integrated circuits ("ICs”) designed for automotive applications are usually qualified according to the Automotive Electronics Council’s (AEC-Q100) requirements. Because AEC-Q100 covers minimum common requirements for the qualification of an automotive IC, many car companies and tier-one automotive suppliers require additional qualification tests to ensure ultra-low defect rates. In addition, AEC-Q100 primarily focuses on the qualification phase of the product cycle of an IC. Other phases such as IC design and production, customer support and the handling and investigation of returns are not covered in detail. In order to reach the automotive goal of near-zero defect rates, all phases of the IC product cycle need to be addressed thoroughly.

TrueAuto uses a proven total approach to deliver leading edge quality and services to satisfy the most demanding automotive customers. TrueAuto robustness begins with SMSC’s design for reliability techniques that build automotive-grade excellence and testability into the IC. The IC is fully characterized over many operating parameters to validate that the quality of the design meets or exceeds AEC-Q100 reliability standards and customer specific requirements. In addition, SMSC employs extensive technologies and processes, such as enhanced process monitors, during fabrication of TrueAuto products in order to drive continuous improvements in accordance with SMSC’s zero Defects per Million (DPM) goals.

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.

About SMSC

SMSC is a leading developer of Smart Mixed-Signal Connectivity™ solutions. SMSC employs a unique systems level approach that incorporates a broad set of technologies and intellectual property to deliver differentiating products to its customers. The company is focused on delivering connectivity solutions that enable the proliferation of data in personal computers, automobiles, portable consumer devices and other applications. SMSC’s feature-rich products drive a number of industry standards and include USB, MOST^® automotive networking, embedded system control and analog solutions, including thermal management and RightTouch™ capacitive sensing. SMSC is headquartered in New York and has offices and research facilities in North America, Asia, Europe and India. Additional information is available at www.smsc.com.

SMSC and MOST are registered trademarks and Smart Mixed-Signal Connectivity, TrueAuto and RightTouch are trademarks of Standard Microsystems Corporation.