Zarlink Semiconductor

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Zarlink and 5V Technologies Demonstrate Collaborative Solution that Improves VoIP Voice Quality at COMPUTEX TAIPEI 2007

OTTAWA, CANADA, June 4, 2007 – Zarlink Semiconductor Inc. (NYSE/TSX:ZL) today announced that it is demonstrating its latest hands-free voice processing products with 5V Technologies Ltd., a fabless developer of complete SOC solutions for a range of applications in the broadband communications market, at COMPUTEX TAIPEI 2007 in Taiwan (TWTC Hall 3 – Booth #G558).

The Zarlink and 5V Technologies solution combines their respective voice enhancement and IP phone expertise to allow equipment manufacturers to rapidly evaluate and develop cost-effective IP phones sets supporting high-quality speakerphone capability. The solution integrates Zarlink’s high-performance acoustic echo canceller technology and 5VT’s cost-effective ARM9-based VoIP SOC (5VT13XX Series). This solution is available as a reference design for qualified customers.

Zarlink’s ZL™38004 voice processing platform helps solve quality concerns that have plagued voice-over-IP equipment. The platform is based on the same technologies currently deployed in telecom applications, where voice quality is an absolute requirement. This proven expertise allows hands-free and IP-based communication equipment manufacturers to ensure reliable voice performance.

The fully featured ZL38004 platform combines Zarlink’s voice processor engine with dual channel wideband, CD quality codecs, on-chip memory and ZLS38502 firmware for speakerphones. ZLS38502 firmware incorporates unique noise reduction and echo cancellation techniques to allow equipment designers to overcome distortion, echo and double-talk issues that plague speakerphones.

“The combination of Zarlink’s ZL38004 platform and the 5VT SOC device provides manufacturers with a ready-made solution that improves voice quality in VoIP phones,” said Andrew Faulkner, director of Zarlink’s Voice Processing product line. “Many of our target applications, particularly IP-phones, use ARM-based SOCs for packetization, VoIP SIP Stack implementation and to provide feature phone functionality. Unfortunately this often leaves too few MIPs for true full-duplex, high-performance acoustic echo cancellation. Combining 5VT’s SOC solution with the Zarlink ZL38004 platform allows customers more easily design enriched feature phone sets with high-quality voice performance.”

“Customers will benefit from 5VT and Zarlink’s collective expertise – a proven and cost-effective VoIP SOC along with high-quality acoustic echo cancellation usually associated with higher-end, expensive VoIP phone sets – offered as a near-turnkey solution with direct support from both companies,” said Jackson Chang, CEO, 5V Technologies Ltd.

Using the powerful 300MHz ARM9 processor with integrated peripherals specialized for CPE applications, 5VT has been recognized to be a ubiquitous chip supplier for applications including IP phones, VoIP ATAs, VoIP gateways, VoIP WLAN gateways, 802.11n WiFi AP routers and other IADs (integrated access devices). In production for over a year, the 5VT1310, 5VT1312 and 5VT1314 devices have enabled many cost-effective designs while maintaining reliable performance. Each device is tailored and packaged for a specific purpose.

IP Phone Reference Design

The Zarlink and 5VT solution is available as a reference design to qualified customers. The reference design outlines requirements for a basic IP phone with speakerphone capability. The design includes two Ethernet ports, along with an IP bridge supported by 5VT’s SOC, expanded keypad and either a parallel or serial LCD module interface. The reference design can be easily modified to support feature-rich IP phones. For more information, please send an email to VoiceProcessing@Zarlink.com.

For more on Zarlink’s hands-free voice processing technologies, visit http://voiceprocessing.zarlink.com/.

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 www.zarlink.com.

About 5V Technologies

With offices located in San Jose, California and Taipei Taiwan, 5V Technologies is dedicated to the development of system on chip (SoC) embedded computing in the broadband communications area such as VoIP, WiFi and WiMAX. 5V Technologies Ltd. can be contacted at +1 408 239-4049 or +886 2 2788-8118 or at sales@5vtechnologies.com. More information can be accessed at www.5vtechnologies.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 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 businesses acquired in the future; our ability 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


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