Intel Press Release

Intel Announces Agreement To Acquire Digital Broadcast Technology Assets, Expertise From Zarlink Semiconductor

SANTA CLARA, Calif., Oct. 7, 2005 – Intel Corporation today announced that it has entered into an agreement to acquire key digital broadcast technologies to deliver complete platform solutions for consumer electronics (CE) devices in the digital home.

The acquisition would include the UK-based, Radio Frequency (RF) Front-End Consumer Business of Zarlink Semiconductor Limited, a leading provider of demodulation and tuner technologies to the satellite, terrestrial and cable market segments, and wholly owned subsidiary of Zarlink Semiconductor Inc. The transaction is subject to closing conditions and regulatory filings.

As part of its digital home initiative, Intel is focused on delivering silicon and software building blocks to enable the development of a wide range of CE devices, including digital televisions, digital set-top boxes and digital media recorders. The acquired RF Front-End Consumer Business would include demodulators and tuners that comprise the “front end” of such CE devices, and enable the devices to receive a digital signal, extract the audio and video streams, decompress, and then either display or store the resulting image and audio broadcast.

“The transition to digital products across the entertainment and CE industries is accompanied by changes in the underlying technology and delivery infrastructure,” said Glenda Dorchak, vice president, Digital Home Group and general manager, Consumer Electronics Group, Intel. “Demodulation and tuner technologies are two key ingredients in this infrastructure and play an increasingly critical role in a broad range of CE devices. The addition of this technology and expertise complements Intel’s CE roadmap and development plans.”

Today’s agreement follows Intel’s successful purchase of Oplus Technologies earlier this year. Zarlink’s demodulation and tuner technologies, combined with the Oplus’ advanced video processing technology would complement Intel’s core microprocessor expertise and enhance its ability to deliver innovative platform solutions to the consumer electronics market segment.

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