ZiLOG's move into the 32-bit space is not an entry into the general purpose ARM-7(R) market. Rather, it is an extension of the company's application-specific product strategy. In this instance, the company will continue to develop core families with more sophistication, processing power, and integration -- all of which build on ZiLOG's existing application leadership, technical expertise, and knowledge in key markets such as security, POS, physical access and data access control.

According the figures published by Nilson (The Nilson Report, November 2005), the POS market for microcontrollers was 8.8 million units globally in 2004 and is growing at a rate of 18.1 percent annually. Target applications encompass secure payment terminals, vending kiosks, postage meters, wireless and mobile payment terminals, ATMs, contactless terminals such as lottery and gaming machines, and other pay points. ZiLOG expects to begin shipping production parts in early summer.

"As with our existing 8-bit product portfolio, we are very much focused on an application-specific standard product strategy within the 32-bit ARM-9 space," commented ZiLOG chairman and CEO Jim Thorburn. "We are entering an exciting phase for the company working with key 'tier one' customers in the security and POS markets to develop new, leading edge products. We believe our first set of product introductions in the summer will further leverage our position as one of the leading suppliers of microcontrollers to these sectors."

Dr. Norman Sheridan, ZiLOG executive vice president of technology operations, added: "Whilst our core focus with the ARM-9 product has been on POS and security, we have identified additional opportunities for applications in physical access control, for example, transportation, ticketing and passport/ID, and data access control, such as fitness machines, remote monitoring and health cards. Although we are still at a very early stage in these areas, the potential is certainly there for us to explore and the next few months are an exciting time for our company."

About ZiLOG, Inc.

ZiLOG, Inc. founded in 1974, won international acclaim for designing one of the first architectures in the microprocessors and microcontrollers industry. Today, ZiLOG is a leading global supplier of micro-logic devices. ZiLOG designs and markets a broad portfolio of devices for embedded control and communication applications used in consumer electronics, home appliances, security systems, point of sales terminals, personal computer peripherals, as well as industrial and automotive applications. ZiLOG is headquartered in San Jose, California, and employs approximately 500 people worldwide with sales offices and design centers throughout Asia, Europe and North America. For more information about ZiLOG and its products, visit the Company's website at: www.ZiLOG.com.

NOTE: ZiLOG is a trademark or registered trademark of ZiLOG, Inc. in the United States and in other countries. Other product and or service names mentioned herein may be trademarks of the companies with which they are associated.

This release contains forward-looking statements relating to expectations, plans or prospects for ZiLOG, Inc. and its market that are based upon the current expectations and beliefs of ZiLOG's management. These forward looking statements include the statements about the potential market growth of the microcontroller market for ARM-9 applications and potential shipping dates could change if we are required to conduct additional testing or other revisions. These forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. For example, an economic slow down may reduce end demand for ZiLOG ARM product applications or a new technology may emerge which is more efficient than microcontrollers. ZiLOG does not expect to, and disclaims any obligation to, update such statements. ZiLOG, however, reserves the right to update such statements or any portion thereof at any time for any reason.

For a detailed discussion of these and other cautionary statements, please refer to the risk factors discussed in filings with the U.S. Securities and Exchange Commission ("SEC"), including but not limited to ZiLOG's Annual Report on Form 10-K for the fiscal year ended December 31, 2004, and any subsequently filed reports. All documents also are available through the SEC's Electronic Data Gathering Analysis and Retrieval system (EDGAR) at http://www.sec.gov or from ZiLOG's website at www.ZiLOG.com.

CONTACT: Stew Chalmers of Positio Public Relations, +1-408-453-2400, or
Email Contact, for ZiLOG, Inc.

Web site: http://www.zilog.com/