CALDICOT, UK, April 11, 2007 -- Zarlink Semiconductor Inc. (NYSE/TSX:ZL) today announced that it has joined the SHIFT Project (Smart High-Integration Flex Technologies). Co-funded by the European Commission, the project is developing flexible, highly integrated packages for emerging electronic systems, including medical devices, portable communication tools, smart cards and aerospace applications.

The SHIFT Project consortium consists of R&D institutes, industrial flex manufacturers, end-users and a technology support agency. Zarlink's participation in the SHIFT Project is based in its Caldicot, UK site. The company's work will be initially focused on developing flexible packaging technology for the personal medical device market. The first SHIFT enabled product demonstrator from Zarlink will be available in the summer of 2007.

With the increase in electronics systems that are located near, on or even implanted in patients, product manufacturers are seeking lightweight, flexible and compact designs to increase product functionality, user comfort and convenience. The embedding of components in flexible materials such as polyimides will be used as the basis of these products. To boost the combination of high functionality and compactness as well as user comfort, there is a need for substantial development in the use of embedded components in flex substrates.

"Medical electronic systems that move along with the user increasingly require more functionality, and must be extremely small, lightweight and available at a reasonable price," said David Hatherall, external project leader at Zarlink's Caldicot facility. "This trend is just starting and it's clear that we need to advance 'smart' packaging technology, which means developing a flexible multilayer structure supporting multiple functions."

Zarlink's Caldicot facility is a leader in advanced micropackaging solutions for medical, high reliability and security markets. It offers unique solutions that give customers the flexibility to incorporate a higher component count and greater functionality in a smaller space than what is typically found in conventional electronic assemblies.

For more information about SHIFT, please visit http://www.shift-project.org/.

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, optoelectronics and ultra low-power communications. 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: rapid technological developments and changes; our ability to continue to operate profitably and generate positive cash flows in the future; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; increasing price and product competition; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

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

For further information:

Edward Goffin
Media Relations
613 270-7112
mailto:edward.goffin@zarlink.com

Mike McGinn
Investor Relations
613 270-7210
mike.mcginn@zarlink.com