MOST Multimedia Networking Technology Now in All Major Mercedes-Benz Car Lines

HAUPPAUGE, N.Y.--Sept. 12, 2005--SMSC , today announced that its MOST(R) multimedia networking technology has been selected as part of the infotainment system, launched in July 2005, for the 2006 Mercedes-Benz B-Class and M-Class platforms. With these latest launches, MOST is now the standard network for the infotainment systems across the full range of Mercedes-Benz volume platforms.

MOST multimedia technology enables the networking of feature-rich infotainment systems in automobiles by providing the means to distribute multimedia entertainment functions among the various control devices around the car. For example, a CD changer, radio, global positioning system, mobile telephone and DVD player can be established in an efficient ring network and can send crisp, static-free audio signals digitally to the amplifier by utilizing the MOST network.

SMSC's Automotive Infotainment Systems (AIS) group, formed as a result of SMSC's acquisition of OASIS SiliconSystems, is a supplier to nearly every major European automaker for MOST-based infotainment semiconductor solutions, including Audi, BMW, Fiat, Jaguar, Land Rover, Mercedes-Benz, Porsche, PSA, Saab and Volvo. OASIS is a founding member of the MOST Cooperation, a cooperative of automakers, automotive systems architects and manufacturers and key components suppliers working to establish and refine a common standard for the evolving requirements of automotive multimedia networking.

About SMSC:

Many of the world's most successful global technology companies rely upon SMSC as a go-to resource for semiconductor system solutions that span analog, digital and mixed-signal technologies. Leveraging substantial intellectual property, integration expertise and a comprehensive global infrastructure, SMSC solves design challenges and delivers performance, space, cost and time-to-market advantages to its customers. SMSC's application focus targets key vertical markets including mobile and desktop PCs, servers, consumer electronics, automotive infotainment and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal PC system controllers, non-PCI Ethernet, ARCNET, MOST, Hi-Speed USB and other high-speed serial communications.

SMSC is headquartered in Hauppauge, New York with operations in North America, Taiwan, Japan, Korea, China and Europe. Engineering design centers are located in Arizona, New York, Texas and Karlsruhe, Germany. Additional information is available at www.smsc.com.

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, as well as general industry and market conditions. Reductions in the rate of growth of the PC, consumer electronics, embedded or automotive 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.