Ottawa, Canada, July 03, 2007 -- Zarlink Semiconductor Inc. (NYSE/TSX:ZL) today expanded its VEC (voice echo canceller) product portfolio with a hardware and firmware platform for next-generation telecom equipment that support voice services over converging networks. The highly integrated ZL38015 hardware and ZLS38233 firmware solution helps manufacturers simplify design, speed time-to-market and lower bill-of-material and resource costs.

The rapid growth of VoIP (voice-over-IP) services is driving demand for a new class of telecom equipment that ensures superior voice performance across converging networks. For example, enterprise media gateways, VoIP phone sets and IADs (integrated access devices) must seamlessly handle voice traffic across circuit and packet networks, with no discernable loss in quality for the end-user.

"Converging voice networks present a challenge for conventional VECs, which must handle complex echo issues that may be further emphasized by the longer signal processing and transmission delays associated with packet infrastructures," said Jarrod Thorne, product marketing manager of Zarlink's Telecom Networking portfolio. "The ZL38015 hardware and ZLS38233 firmware supports full-band echo cancellation and advanced algorithms while offloading the heavy MIPs consuming VEC and DTMF functions from the main processor. Compared with competing solutions that require significant integration resources, Zarlink's VEC platform is a drop-in solution that simplifies design and ensures high-quality voice with field-upgradeable firmware to easily support future applications."

Integrated hardware and firmware

The ZL38015 voice processing platform is built on a voice optimized 100 MHz (200 effective MIPS) DSP with an integrated 1024 tap filter co-processor, 16 KW instruction and 8 KB data memory, hardware accelerators, SPI (serial peripheral interface), UART (universal asynchronous receiver/transmitter) and TDM (time division multiplexing) interfaces, multiprotocol TDM ports, flexible clocking scheme support and 10 GPIOs (general purpose input/outputs).

The ZLS38233 is a four-channel VEC with echo tail programmable up to 64 ms per channel. Where competing solutions will often employ windowing algorithms in the DSP to locate and cancel peaks in echo profiles, the ZLS38233 VEC supports full band echo cancellation. Windowing algorithms may not detect multiple echo paths in a signal, resulting in incomplete echo cancellation. In addition, echo tails outside the windowing algorithm may not be cancelled. In comparison, the ZLS38233 VEC eliminates echo from 0 ms to 64 ms without compromise.

The ZLS38233 firmware also integrates a range of features to support superior voice quality. A highly flexible DTMF (dual-tone multi-frequency) transmit programmable tone generator can generate dual DTMF or single tones, with burst mode support from zero to four seconds and programmable output gains from -18 db to 24 db in 6 db steps to allow for the generation of DTMF, CNG (comfort noise generator), central office and other telecom signaling functions. An integrated four-channel DTMF receiver detects standard dual tone DTMF tones, and accepts a minimum tone duration on 40 ms. The DTMF Rx supports sensitivity of greater than -37 dbm and accept and reject of less than -5 dbm.

All four channels of the ZLS38233 support G.169 ALC (automatic level control) to help maintain a stable voice connection and prevent instability in the echo path through a programmable gain range from 0 db to -24 to 24 db.

The ZLS38233 builds on Zarlink's extensive portfolio of VEC devices with capabilities that exceed ITU-T G.168 requirements, including double-talk, and advanced NLP (non-linear processor) and echo cancellation performance.

Availability and packaging

Zarlink's ZL38015 VEC with integrated ZLS38233 firmware is in volume production. The device is offered as a lead-free 100-pin QFP (quad flat package) measuring 14 mm x 14 mm. For information, please visit http://news.zarlink.com/common/direct/products/profiles/ZL38015.

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: our dependence on the successful development and market introduction of new products; our ability to successfully integrate Legerity and any businesses acquired in the future; our reliance on key personnel; any potential undisclosed liabilities associated with the Legerity acquisition; the potential adverse effect on critical reference design partners who may object to the Legerity acquisition; 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; 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:

Ed Goffin
Media Relations
613 270-7112
edward.goffin@zarlink.com

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