Ottawa, Canada, August 16, 2005 -- Zarlink Semiconductor (NYSE/TSX:ZL) today launched a new terrestrial demodulator for PC-TV, portable and handheld digital television equipment designs. The ZL10355 device offers the industry's smallest package, lowest power consumption and lowest software overhead, coupled with an extended temperature range uniquely suited for mobile DTV. The demodulator fully complies with the stringent NorDig Unified 1.0.2 standard.

While most people receive TV signals over cable or satellite connections, as consumers begin watching TV on personal computers, in cars and even on cell phones, the terrestrial or "line of sight" transmission market is growing. According to company research, Zarlink is the number one provider of terrestrial DTV demodulators and is well positioned to meet the needs of portable DTV equipment designers.

The ZL10355 chip is pin and feature compatible with the recently introduced ZL10353 device, offers the industry's lowest NorDig Unified operational and standby power, as well as the fastest DVB-T (digital video broadcast-terrestrial) "blind-scan and auto re-acquisition" capability. Package size measures just 7 x 7 mm (millimeters) - half the printed circuit board area of the industry standard.

"Portable TV manufacturers need small, low-power components that deliver high performance while operating reliably under the worst signal conditions signal imaginable for consumer DTV products," said Bob Ferreira, DTV front-end product line director, Zarlink Semiconductor. "With the ZL10355 chip, we have customized our core terrestrial demodulator design to address the precise needs of the emerging portable TV market."

Sophisticated integrated features

The ZL10355 includes an integrated digital IF (intermediate frequency) filter that eliminates the need for switched bandwidth SAW (surface acoustic wave) filters in the tuner design, allowing compliant reception of 6, 7 or 8 MHz (megahertz) channels with one filter. The chip also contains an RF signal strength indicator, allowing download and reading of the TV signal strength directly at the receiver box.

The small form-factor ZL10355 chip offers an extended operational temperature range of -40 to +85 degrees Celsius, delivering higher reliability in rugged consumer environments. The device delivers the industry's lowest power consumption at less than 300 mW (milliwatts) in a typical application or 270 mW in a lower power mode. It features a "sleep" pin that reduces the chip's power requirement 1,000-fold when a device is not in use, assisting manufacturers in meeting the mandatory requirements of power reduction directives and the power requirements of handheld and PC-TV equipment manufacturers.

Zarlink's demodulators feature a very high-speed "blind scan and auto re-acquisition" function, built on a hardware-based state machine that automatically scans the entire broadcast band much faster than software-based channel-scanning algorithms. Since the reception on PC, portable and handheld TV devices routinely fluctuates as the user moves around, high-speed scanning and channel re-acquisition is a highly valued function.

Availability

Zarlink's new demodulator is available now. Zarlink supports the product with a comprehensive evaluation system that includes TNIM (terrestrial network interface module) reference designs, evaluation software, PC interface and device drivers. For more information, visit http://news.zarlink.com/common/direct/products/product_profiles/ZL10355.htm.

Zarlink works with module and set-top box manufacturers to offer system designers a wide choice of front-end applications. For more on the company's digital television technology, visit http://dtv.zarlink.com/.

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, consumer and ultra low-power communications, and high-performance analog. For more information, visit http://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 http://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: increasing price and product/service competition by foreign and domestic competitors, including new entrants; rapid technological developments and changes; the ability to ensure continuity of supply from outside fabrication services; changes in environmental and other domestic and foreign governmental regulations; protection and validity of patent and other intellectual property rights; exposure to currency exchange rate fluctuations; the ability of the Company to attract and retain key employees; demographic changes and other factors referenced in the Company's Annual Report on Form 10-K for the fiscal year ended March 26, 2004 and Form 10-Q for the quarter ended December 24, 2004. Investors are encouraged to consider the risks detailed in those filings.

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

For further information, editors contact:

North America
Heather McCulligh
Media Relations
613 270-7322
mailto:heather.mcculligh@zarlink.com

Asia-Pacific
Karen Li
The Hoffman Agency - China
86-10-6507-0985
kli@hoffman.com.cn

Europe
Simon Krelle
Pinnacle Marketing Communications
44 (0) 7973 821036
simonk@pinnaclemarcom.com