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SMSC Strengthens Consumer Electronics Connectivity Leadership With Digital Broadcasting Radio Relationship

2012-04-12

HAUPPAUGE, N.Y. ---- SMSC (NASDAQ: SMSC), a leading semiconductor company enabling content rich connectivity systems, today announced that it has added full WorldDMB Profile 1 & 2 Compliant Radio Options to its JukeBlox® 3.0 (JB3.0) wireless audio platform. SMSC also announced a strategic relationship with Quantek Inc. to add comprehensive DAB/DAB+/DMB-Radio/FM radio features to the JukeBlox platform. The worlds' largest consumer electronic brands are powered by JukeBlox technology, adding network and Internet connectivity for streaming music to all types of consumer electronics audio products.

The Quantek and SMSC relationship will allow ODMs and other brands to bring to market low cost, feature-rich integrated digital solutions that maximize the features and capabilities of each company's technology. This combined streaming music platform finally gives digital radio suppliers access to greater global appeal with the additional connectivity and networking features provided by the customizable JukeBlox Software Development Kit (SDK) platform. These high-value features include AirPlay®, Internet radio, new music Apps such as Pandora®, Rhapsody®, Napster® and LastFM along with broad home network music streaming interoperability including DLNA, uPnP, DRM and Windows® 7.

"DAB/DAB+/DMB audio functionality is a great addition to the JukeBlox platform," said Jordan Watters, SMSC’s Vice President of Marketing and Business Development for Wireless Products. "SMSC’s comprehensive and proven solutions bring new connectivity features alongside traditional features including AM/FM radio, clocks/alarms, iPod/iPhone and USB peripheral support. The relationship with Quantek further enhances our leadership, allowing us to aggressively service this regional radio need."

Quantek Inc. is a Taiwanese semiconductor company and a leader in digital radio solutions throughout Asia, Europe and Australia. The company provides a suite of all-in-one low cost digital radio modules and platforms. The integrated solution will use Quantek’s powerful Q8 DAB/DAB+/DMB-Radio/FM module, optimized for mainstream audio applications. Q8 is an ultra low powered fully WorldDMB Profile 1 compliant module, with enhanced performance in a small footprint, based on the latest QD3000 baseband chip, maintaining excellent receiver sensitivity, reliable operation and superior audio. Q8 also support DLS, EPG, APNG, multiple alarms, presets and display types, as well as SD card interface, battery level detection, and S/PDIF.

"We see a continuing expansion of DAB/DAB+/DMB radio in the global market as well as a fast ramping demand for Internet radio and home networked applications,” said Quantek Vice President of Sales and Marketing, Jeff Lin. "Working with SMSC allows us to address our customers' complete radio needs, delivering the most cost effective, innovative technology.”

"Our goal has been to provide market leading connectivity platforms for a broad range of consumer electronics products,” said Gene Sheridan, Senior Vice President and General Manager of SMSC’s Wireless Products Group. “Together, Quantek and SMSC will offer tier 1 brands a strong roadmap of high performance and cost down integration for the Digital Radio market.”

More on SMSC’s Wireless Audio Platform

SMSC’s focus on wireless audio solutions propels the company to a leadership position in the wireless audio market. The JukeBlox platform offers popular music applications along with the industry standard Ethernet and Wi-Fi interfaces to give customers access to music content from all over the world via their home networks or the Internet. Kleer technology enables high quality, low latency wireless distribution of digital content to headphones, speakers and other audio devices to enhance the consumer’s listening experience. SMSC’s KleerNet technology gives consumers the option of choosing among KleerNet-enabled audio products from various consumer brands for use in their home, office, or portable applications. Examples of wireless audio products that incorporate KleerNet technology are 5.1/7.1 surround sound home theater systems, sound bars, sub-woofers, headphones, and gaming and VOIP headsets. KleerNet wireless audio products are designed to co-exist with Wi-Fi and Bluetooth® traffic and support multi-band RF, low latency, low power and high bit and sampling rates.

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 automobiles, consumer devices, PCs and other applications. SMSC’s feature-rich products drive a number of industry standards and include USB, MOST® automotive networking, Kleer® and JukeBlox® wireless audio, 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, Europe and India.

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 ability to realize the expected benefits of acquisitions; 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.

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