Silicon Laboratories' CMOS RF Synthesizer in XM Satellite Radio Receivers; Si4136XM Provides Integration and Performance to World's First Satellite Radio System

    AUSTIN, Texas--Oct. 3, 2001--Silicon Laboratories Inc. today announced that the new satellite radio receivers from XM Satellite Radio Inc. use Silicon Labs' highly integrated Si4136XM RF synthesizer.
    The 100 percent CMOS RF synthesizer was selected because it provides leading performance and integration by eliminating over 30 components that would have been required by other synthesizer solutions.
    XM Satellite Radio formally launched the first U.S. digital satellite radio service last month with 100 channels of coast-to-coast CD-quality music and news. The Si4136XM provides the frequency synthesis functionality needed to down-convert the satellite and terrestrial repeater broadcast signals in the XM radio receiver.
    Anh Nguyen, director of engineering for XM's satellite receiver development team said, "Silicon Labs' synthesizer met our demanding performance requirements and eliminated components and board space required by alternative solutions. We view the Si4136XM as the optimal synthesizer solution for XM radio receivers as well as an important part of our overall intellectual property."
    The Si4136XM is included in both the radio receiver modules offered by XM through a contract-manufacturing partner and in the stringent reference design that all XM-compliant receivers must meet. Manufacturers wishing to incorporate the XM radio receiver in their products must either purchase the module or follow the reference design. The XM system includes two satellites, "Rock" and "Roll" as well as a network of terrestrial repeaters that amplify the satellite signal in dense urban areas.
    "Being selected by XM for its satellite radio receivers demonstrates that Silicon Labs provides the best RF synthesizer technology for wireless, high-volume consumer applications, even outside of the cellular handset market where we are currently best known," said Ed Healy, vice president and general manager for Silicon Labs' Wireless Products Division.
    "We are very pleased with XM's endorsement of the Si4136XM. Due to XM's strict specifications on the receiver design and manufacture, we anticipate that nearly all XM-compatible radios will use the Si4136XM by 2002. We look forward to continuing to work with XM to advance this next generation of broadcast radio."
    Silicon Labs is in volume production with a full line of RF synthesizers designed for GSM/GPRS, W-CDMA or "3G" and ISM-band applications. Additionally, Silicon Labs is sampling the Aero(tm) GSM transceiver, which will be in volume production early in the fourth quarter.

    XM Satellite Radio Inc.

    On Sept. 25, XM officially launched the first U.S. digital satellite radio service in its lead markets, Dallas/Fort Worth and San Diego. XM's launch will expand across the entire Southwest and Southeast United States, covering half the country, in mid-October and across the rest of the continental United States in November.
    XM will transform radio, an industry that has seen little technological change since FM, almost 40 years ago. XM is offering its 100 channels of digital-quality, coast-to-coast sound for $9.99 a month. Leading manufacturers will offer 24 models of XM radios, a broad array including universal models that will easily enable any existing car stereo system to receive XM service, and new AM/FM/XM systems offering many other great features.
    Sony, Alpine and Pioneer XM radios are being distributed through major electronics retailers including Best Buy, Circuit City, Tweeter, participating RadioShack Dealers and Franchisees, Sears and Crutchfield. Delphi-Delco systems will roll out initially in Cadillac DeVille and Seville models beginning in November, expanding to more than 20 GM models next year.
    XM won several awards at the 2001 International Consumer Electronics Show, including "Best of CES" in the automotive category. XM's strategic investors include America's leading car, radio and satellite TV companies -- General Motors, American Honda Motor Co. Inc., Clear Channel Communications and DIRECTV. XM has a distribution agreement with General Motors to integrate XM radios into its vehicles commencing in 2001. For more information, please visit XM's Web site: www.xmradio.com.

    Silicon Laboratories

    Silicon Laboratories Inc. designs, manufactures and markets proprietary high-performance mixed-signal integrated circuits (ICs) for the wireless, wireline and optical communications industries. Silicon Laboratories is an ISO9001-certified manufacturer and has applied for over 100 patents on its mixed-signal technology. The company was incorporated in 1996 and is based in Austin, Texas. Additional information about Silicon Labs is available at www.silabs.com or through the toll-free investor relations line at 877/411-SLAB (7522).

Cautionary Language

This press release may contain forward-looking statements based on Silicon Laboratories' current expectations. These forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. Silicon Laboratories believes that it is important to communicate the company's future expectations to investors. However, there may be events in the future that Silicon Laboratories is not able to accurately predict or control. For a discussion of these and other factors which could impact Silicon Labs' financial results and cause actual results to differ materially from those in the forward-looking statements, please refer to Silicon Labs' recent filings with the SEC, particularly the Form 10-K filed Jan. 22, 2001, the Form 10-Q filed April 24, 2001, and the form 10-Q filed July 23, 2001.

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