SMSC Ships New MOST50 INIC to Toyota Suppliers

HAUPPAUGE, N.Y.--SMSC today announced that SMSC began shipping the intelligent Network interface controller (INIC™) for its new 50 Mpbs Media Oriented Systems Transport (MOST^®) network technology, known as MOST50, to Toyota Motor Corporation’s suppliers.

The 25 Mbps version of MOST, MOST25, has been deployed in over 45 car models, mainly by European car makers, since its first adoption in 2001. In June 2006, SMSC announced MOST50, which uses a double density coding scheme to double the bandwidth over the first generation while maintaining the same physical transmission frequency. While MOST25 was optimized for signal transmission over Polymer Optical Fiber (POF), the new generation also features an electrical Physical Layer. Signal transmission can be realized over Shielded Twisted Pair (STP) copper cables and, through SMSC’s advanced signal conditioning technology, even over unshielded Twisted Pair (UTP) copper cables in the harsh environment of a vehicle. The electrical Physical Layer has been verified by several car makers.

“This represents a noteworthy achievement as typical car networks like CAN run up to 1 Mbps over copper cables, FlexRay recently launched a 10 Mbps solution and MOST runs 50 Mbps,” said Dr. Christian Thiel, Vice President and Managing Director of SMSC’s automotive group. “The option to use MOST with copper cables allows our customers to continue to use their conventional wire harness and established manufacturing processes.”

MOST50 and the new electrical Physical Layer have been standardized within the MOST Cooperation, the group that develops standards specifications for the MOST multimedia network and consists of 15 car makers and more than 75 of their leading system and component suppliers. SMSC is a member of the steering committee of the MOST Cooperation.

About INIC:

SMSC’s INIC is a special architecture for network interface controllers that has been developed to simplify the design of robust network nodes. SMSC offers INICs for the MOST25 and MOST50 networks that are fully compatible from an application perspective. The INIC architecture represents a complete system-on-chip, leveraging SMSC’s MOST NetServices network driver to set up a MOST interface, which provides network stability independent from potential misbehavior of external applications. In addition, it provides easy access to all data transportation mechanisms on a MOST Network. It also incorporates SMSC’s MediaLB™, a low cost and low pin count inter-chip communication bus developed to allow applications to connect to a MOST network with minimum hardware overhead, independent of physical layer or speed grade.

About MOST:

MOST multimedia networking 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.

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 consumer electronics, automotive infotainment, PC and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal embedded controllers, non-PCI Ethernet, ARCNET, MOST and Hi-Speed USB.

SMSC is a supplier to many automakers for MOST-based infotainment semiconductor solutions, including Audi, BMW, DaimlerChrysler, Land Rover, Porsche, Saab, Toyota and Volvo.

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

Forward Looking Statements:

Except for historical information contained herein, the matters discussed in this announcement are forward-looking statements about expected future events and financial and operating results that involve risks and uncertainties. These uncertainties may cause our actual future results to be materially different from those discussed in forward-looking statements. Our risks and uncertainties include the timely development and market acceptance of new products; the impact of competitive products and pricing; our ability to procure capacity from our suppliers and the timely performance of their obligations, the effects of changing economic conditions domestically and internationally and on our customers; our relationships with and dependence on customers and growth rates in the personal computer, consumer electronics and embedded and automotive markets and within our sales channel; changes in customer order patterns, including order cancellations or reduced bookings; the effects of tariff, import and currency regulation; potential or actual litigation; and excess or obsolete inventory and variations in inventory valuation, among others. In addition, 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.

Our forward looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations and may not reflect the potential impact of any future acquisitions, mergers or divestitures. All forward-looking statements speak only as of the date hereof and are based upon the information available to SMSC at this time. Such statements are subject to change, and the Company does not undertake to update such statements, except to the extent required under applicable law and regulation. These and other risks and uncertainties, including potential liability resulting from pending or future litigation, are detailed from time to time in the Company's reports filed with the SEC. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled “Other Factors That May Affect Future Operating Results” or “Risk Factors” for a more complete discussion of these and other risks and uncertainties.

SMSC and MOST are registered trademarks and INIC is a trademark of Standard Microsystems Corporation. Product names and company names are trademarks of their respective holders.