ZL Zarlink Semiconductor

Zarlink Semiconductor Inc. (TSX: ZL)(NYSE: ZL) today announced availability of the VoiceEdge VE792 Next Generation Carrier Chipset (NGCC), expanding the company's industry-leading VoiceEdge family of highly-programmable integrated voice silicon solutions. The VE792 is a 3 chipset solution bringing carrier class performance closer to subscribers through features such as support for simultaneous high speed video and voice, carrier grade line testing, and the lowest power usage and highest density on the market.

As carriers continue to revolutionize their networks, with a push towards Fixed Mobile Convergence, they are calling for a new class of voice access equipment. This revolution means equipment designers must combine support for operational testing in the field with a high degree of flexibility. Because Zarlink anticipated these needs more than two years ago when it began development of a next generation carrier chipset, it is best positioned to meet market demand today. Zarlink worked very close with tier one line card designers to define the best solution for the next generation network. This network revolution will call for a shift from the traditional TDM line cards to the next generation IP line cards, evolving the line cards into a stand alone system capable of delivering voice, data, video, while accurately monitoring, provisioning, and testing the copper loop infrastructure which will significantly increase the demand for this chipset.

"Our annual VoIP market report forecasts steady growth in 'low density' aggregation media gateways, with compound annual growth rate (CAGR) of 62 percent through 2011," said Steve Rago, principal analyst, iSuppli. "Demand for optimized chipsets, like Zarlink's VE792, is a market-must to support this next generation telecommunications infrastructure deployment."

The VE792 offers a flexible, cost effective, comprehensive processing architecture that also integrates widely supported system interfaces. This design allows Zarlink customers to develop multiple architectures from a single chipset and utilize the voice feature processor of their choice. In initial testing the VE792 received high marks from access communications equipment designers working to offer the highest-quality line card while reducing time to market and overall system costs.

"Operators continue to maintain traditional telephony services in the presence of high-speed DSL and streaming video over the same twisted pair of copper," said Shahin Sadeghi, segment marketing manager, Zarlink. "The VE792 allows these operators to continue with the same level of support as they move forward with the deployment of the more-robust next generation networks."

The VoiceEdge VE792 chipset includes an octal Subscriber Line Audio-Processing Circuit (SLAC), with integrated carrier grade line test toolbox and DTMF detection, Single Channel Subscriber Line Interface Circuit (SLIC) and a multi-port Voice Control Processor (VCP), providing up to 72 channels of real time call control function, as well as full carrier grade line test, when enabled with the Zarlink LineCare software suite. The chipset supports a centralized architecture, capable of interfacing all system on chip voice packet processors and network processors, giving end users full scalability and software compatibility with their favorite architecture.

Pricing and Availability

VoiceEdge VE792 chipset samples are available and are currently being evaluated by alpha customers. Final pricing will be determined by order quantity. Please contact Zarlink for details.

Editors Note: A demonstration of the VE792 NGCC will be made at Broadband World Forum in Brussels, Belgium, September 30 - October 2; Zarlink booth #275. Please contact Zarlink for additional information.

About Zarlink Semiconductor

For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, optoelectronics and ultra low-power communications. For more information, visit www.zarlink.com.

Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the following: our dependence on the successful development and market introduction of new products; our dependence on revenue generation from our legacy products in order to fund development of our new products; our ability to successfully integrate Legerity and any businesses acquired in the future; any potential undisclosed liabilities associated with the Legerity acquisition; our ability to operate profitably and generate positive cash flows in the future; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink Semiconductor Inc.

Contacts: Zarlink Semiconductor Inc. Ed Goffin Media Relations and Investor Relations 613-270-7112 edward.goffin@zarlink.com