SMSC and TransDimension Achieve Industry's First USB-IF OTG Certification of Hi-Speed USB Controller with Stand-Alone Transceiver; ASIC and SoC Designers Gain Hi-Speed USB Host, Device or OTG Support

HAUPPAUGE, N.Y. & IRVINE, Calif.—(BUSINESS WIRE)—Dec. 21, 2004— SMSC (Nasdaq: SMSC), a leading semiconductor company delivering innovative system solutions spanning analog, digital and mixed-signal technologies, and TransDimension, a leading provider of USB connectivity solutions for embedded applications, today announced the industry's first successful completion of USB-IF On-The-Go (OTG) compliance testing of a Hi-Speed USB solution utilizing a stand-alone transceiver.

TransDimension's Hi-Speed USB controller IP with a UTMI+ Low Pin Interface (ULPI) interface block and SMSC's USB3300 ULPI stand-alone physical layer transceiver (PHY), are the first Hi-Speed USB products to pass OTG compliance testing, which is governed by the USB Implementers Forum (USB-IF). ULPI modifies the well-known UTMI+ link/PHY interface to significantly reduce the pin count necessary for discrete USB transceiver implementations to support host, device or OTG functionality. This low pin count interface allows transceivers to be kept separate from the associated digital ASICs as the technology nodes become smaller and integrating the PHY becomes more complex and expensive.

"The announcement of this OTG milestone demonstrates the solid performance of a ULPI-based Hi-Speed USB system. The ability to remove the 5-volt tolerant transceiver from the SoC will allow system developers to speed time-to-market and mitigate risk as they move into smaller and smaller process geometries," said Pete Todd, Vice President of Marketing at TransDimension. "Until the development of ULPI, the only external transceiver option open to the SoC community involved a UTMI+ interface which could entail anywhere between 22 and 55 pins. This collaboration with SMSC has now proven that the same functionality and performance can be achieved with the 8 and 12 pin variations of a ULPI interface."

"Adding to our recent announcement of the industry's first ULPI Transceiver to achieve USB-IF Hi-Speed certification, today's announcement further raises the bar by offering ASIC and SoC designers the ability to incorporate Hi-Speed USB host support in their products." said Steve Nelson, Vice President of Marketing - Connectivity Solutions at SMSC. "Driven by the explosion of digital photography, the highly competitive portable consumer electronics market is now mandating that products such as MP3 players, PDAs, digital cameras and cell phones provide Hi-Speed USB host control of external peripheral devices without a PC. Partnering with TransDimension has again paid dividends by accelerating the extensive interoperability testing required to reach this significant milestone."

The USB3300 is SMSC's third generation Hi-Speed USB stand-alone PHY and the first that utilizes the low pin count ULPI interface. Delivering the industry's smallest Hi-Speed USB PHY solution, the USB3300 is available in a 5mm x 5mm x 0.9mm 32-pin QFN package. Leveraging reductions in footprint, profile, pin count and current consumption, the USB3300 is ideal for the portable handheld electronics market including devices such as digital still cameras, PDAs, cell phones and MP3 players. Qualification samples and production quantities of the SMSC USB3300 are available today. Pricing is $2.00 per unit (U.S. list price) in 10K quantities.

The ULPI interface is the latest enhancement to TransDimension's industry-leading Hi-Speed USB OTG IP that currently has 18 licensees and over 6 million units in production. TransDimension's Hi-Speed USB IP family including host, peripheral and OTG designs, is delivered as foundry independent source code with verification environments and synthesis scripts, and is available for immediate delivery. Pricing is available upon request.

About TransDimension

Headquartered in Irvine, California, TransDimension is a privately held company founded in 1997 to develop and market solutions targeting peripheral connectivity. TransDimension's product lines include the integrated circuits, IP cores and USB software stacks that enable direct connectivity for a wide range of PC peripheral applications and mobile devices. Until now, these products have required an indirect means, such as a PC host, for exchanging data. TransDimension's SoftConnex USB software is a complete software solution for USB, including the broadest OS and CPU platform support and the largest library of peripheral class drivers available. More information about TransDimension can be found at http://www.transdimension.com.

About SMSC

Many of the world's most successful global technology companies rely upon SMSC as a go-to resource for integrated circuits and semiconductor system solutions that span analog, digital and mixed-signal technologies. SMSC delivers products that solve the challenges of space, cost and time to market for high-speed computing, connectivity and embedded networking applications.

SMSC addresses computing, communications and consumer electronics markets through world-leading positions in Input/Output and non-PCI Ethernet products; innovations in USB2.0 and other high-speed serial solutions; and integrated networking products employed in a broad range of applications. Leveraging substantial intellectual property and a comprehensive global infrastructure, SMSC thrives at the intersection of silicon, software and customized OEM applications. SMSC is based in Hauppauge, New York with operations in North America, Taiwan, Japan, Korea, China and Europe. Engineering design centers are located in Arizona, New York and Texas. 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 include the timely development and market acceptance of new products; the impact of competitive products and pricing; the effect of changing economic conditions in domestic and international markets; changes in customer order patterns, including loss of key customers, order cancellations or reduced bookings; and excess or obsolete inventory and variations in inventory valuation, among others. Such 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.

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. In addition, sales of many of the Company's products depend largely on sales of personal computers and peripheral devices, and reductions in the rate of growth of the PC, consumer electronics and embedded markets could adversely affect its operating results. SMSC conducts business outside the United States and is subject to tariff and import regulations and currency fluctuations, which may have an effect on its business. All forward-looking statements speak only as of the date hereof and are based upon the information available to SMSC at this time. Such information is subject to change, and the Company may not necessarily inform, or be required to inform, investors of such changes. 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" for a more complete discussion of these and other risks and uncertainties.

SMSC is a registered trademark of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.

SMSC Contacts:
SMSC Corporate Communications
Carolynne Borders, 631-435-6626
carolynne.borders@smsc.com
or
McBru
Jennifer Bader, 503-546-1020
jennifer@mcbru.com
or
TransDimension Media Contact:
Lages & Associates
Jennifer Tolkachev, 949-453-8080
jennifer@lages.com