SMSC Launches Industry’s First, Hi-Speed Inter-Chip USB 2.0 to 10/100 Ethernet Controller for Low Power Applications

SMSC’s Patented Interconnect Technology Provides Link for SoCs & Peripherals Via On-Board USB

SMSC (NASDAQ: SMSC), a leading semiconductor company creating valued connectivity ecosystems, today introduced its LAN9730, the industry’s first fully integrated Hi-Speed Inter-Chip (HSIC) USB 2.0 to-10/100 Ethernet device. The LAN9730 device was designed to deliver power consumption and bill of material savings to OEM and ODM designers of a wide range of embedded systems and consumer electronics devices.

HSIC, which incorporates SMSC’s patented Inter-Chip Connectivity^™ (ICC) technology, enables the USB 2.0 protocol, which is now standard in billions of electronic devices, to be delivered over short distances while retaining 100 percent software compatibility with an analog USB 2.0 connection. AMD and Samsung have recently joined NVIDIA, Qualcomm and others in licensing ICC from SMSC to enable HSIC communication from their portable System-on-a-Chip (SoCs) to peripheral USB 2.0 devices. HSIC has been adopted as part of the USB 2.0 standard and dramatically decreases power consumption in applications such as battery-powered portable devices requiring an Ethernet port. The LAN9730 offers an integrated 10/100 physical layer and multiple power management enhancements, including Magic Packet and Link Status Change as well as “Wake on LAN” mode, which allows systems to enter a low power state and wake on desired network traffic, thereby conserving resources during downtimes.

“Performance, flexibility in design and power savings are all critical design elements inherent in SMSC’s line of networking solutions,” said Rolf Mahler, Vice President and General Manager of SMSC’s Networking Solutions group. “For embedded and consumer applications, this device can leverage our patented ICC technology to reduce power consumption and silicon area compared to a standard analog USB 2.0 interface.”

The latest in SMSC’s growing family of USB-to-Ethernet solutions, the new LAN9730 is compliant with USB specification 1.1 and 2.0 as well as IEEE 802.3/802.3u Ethernet standards. Additionally the LAN9730 needs only a single 25MHz crystal to drive both the USB and Ethernet PHYs, thereby reducing developer BOM cost.

SMSC’s integrated USB-based networking solution provides added flexibility for the routing and placement of network connections anywhere in the developer’s system. Additionally, the LAN9730 supports a wide range of drivers for the most recent versions of Windows?, Mac? and Linux? operating systems. The LAN9730 is ideal for applications such as battery-powered portable devices that also require Ethernet connectivity.

The LAN9730 is available in a small form factor 8x8mm 56-pin QFN package, which is lead-free and RoHS compliant. It is available in both commercial (0 to 70 degree Celsius) and industrial (-40 to +85 degree Celsius) temperature ranges. Qualification samples and evaluation kits are available now with mass production slated for the end of January 2012.

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, 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. 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, 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.

SMSC, MOST, Kleer and JukeBlox are registered trademarks and Smart Mixed-Signal Connectivity, Inter-Chip Connectivity, TrueAuto and RightTouch are trademarks of Standard Microsystems Corporation.