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MOST® Networking Solution Adopted in Third Lexus Platform

HAUPPAUGE, N.Y.--SMSC , a leading semiconductor company that provides Smart Mixed-Signal Connectivity™ solutions, announced that its Media Oriented Systems Transport (MOST®) networking technology has been selected as part of the infotainment system for the new Lexus HS250h, which is distributed in the U.S. and Japan.

“We are pleased to see the rapid roll-out of MOST in the car models of Lexus,” said Dr. Christian Thiel, General Manager of SMSC’s Automotive product line. “With the RX and IS having been released earlier, the HS is the third Lexus model that has been launched with MOST this year. In addition to Lexus, MOST is already in use in six Toyota branded models, including the new Prius. A key reason for this fast roll-out is that MOST50 allows the use of copper cables, which enables a plug-in, component approach with existing manufacturing processes.”

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.

MOST50 uses a double density coding scheme to double the bandwidth over the first generation, MOST25, while maintaining the same physical transmission frequency. With MOST50, the data signal is transmitted over Shielded Twisted Pair (STP) or even Unshielded Twisted Pair (UTP) copper cables, allowing customers to use conventional wire harness and established manufacturing processes.

About SMSC

SMSC is a leading developer of Smart Mixed-Signal Connectivity™ solutions. SMSC employs a unique systems level approach that incorporates a broad set of technologies and intellectual property to deliver differentiating products to its customers. The company is focused on delivering connectivity solutions that enable the proliferation of data in personal computers, automobiles, portable consumer devices and other applications. SMSC’s feature-rich products drive a number of industry standards and include USB, MOST® automotive networking, embedded system control and analog solutions, including thermal management and RightTouch™ capacitive sensing. SMSC is headquartered in New York and has offices and research facilities in North America, Asia and Europe. Additional information is available at www.smsc.com.

About SMSC’s Automotive Product Line

SMSC’s Automotive Information Systems is a supplier of TrueAuto™ infotainment and information semiconductor solutions to major automakers, including Audi, BMW, Daimler, Hyundai/Kia, Jaguar, Land Rover, Porsche, Toyota and Volvo. SMSC is a founding member of the MOST Cooperation, a cooperative of automakers, automotive systems architects and manufacturers and key components suppliers working to extend and refine the MOST® standard for the evolving requirements of automotive multimedia networking. Additional information is available at www.smsc-ais.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, commodity prices, interest rates and foreign exchange, potential investment losses as a result of liquidity conditions, the effects of changing economic and political conditions in the market 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 Smart Mixed-Signal Connectivity, TrueAuto and RightTouch are trademarks of Standard Microsystems Corporation.