JAZ Jazz Technologies,

Jazz Semiconductor�, the leader in Analog-Intensive Mixed-Signal (AIMS) foundry solutions and wholly owned subsidiary of Jazz Technologies�, Inc. (AMEX:JAZ) and Avnera� Corporation, a fabless semiconductor company developing the breakthrough AvneraAudio� technology for wired-quality wireless audio, today announced that Avnera utilized Jazz�s 0.18-micron RFCMOS process (CA18), to develop its semiconductor chip technology for wireless speakers, microphones, headphones and headsets that solves the interference problems that have plagued wireless audio for decades. Avnera�s design approach, coupled with Jazz Semiconductor�s process technology, has enabled a low-cost, high-quality and easy-to-use wireless audio solution that delivers CD-quality sound without interference and operates like a plug-and-play unit all on a single piece of silicon. Avnera�s products include the AudioMagic� chip, which enables uncompressed CD-quality sound for music applications, and the VoiceMagic� chip, which offers wideband voice (16KHz sampling rate) transmission, fixed end-to-end voice latency to support echo cancellation, and a small and cost-efficient form factor. AudioMagic and VoiceMagic are the first two product families under the AvneraAudio� brand, which represents innovation, ease-of-use and high-quality sound in audio products. Avnera utilized Jazz�s CA18 process, an RF optimized 0.18-micron CMOS platform. Available RF modules such as high density MIM capacitors allow for high precision, area optimized analog circuits. Thick top metal inductors allow for differentiated, high performance RF radio design. The customized high density digital library enables high levels of digital integration resulting in the remarkably low power consumption and highly integrated RFCMOS platform. The CA18 design enablement suite includes the Process Control Model Tool (PCMT) and the Jazz Inductor Toolbox (JIT) in addition to next generation PSP and MOSVAR high frequency models. The CA18HR process offers 1.8V and 3.3V CMOS, vertical PNP transistors, 4fF/�m� stacked MIM capacitors, resistors (poly and Nwell), and high-Q octagonal inductors. Options include triple well isolation, six layers of metal, and thick top metal. The process also offers a high voltage transistor useful for the integration of power and battery management functions. �We are offering consumers a wireless solution that is easy to use with high quality at an affordable price,� said Manpreet Khaira, CEO, Avnera Corp. �By using Jazz�s advanced RF CMOS process, we are able to offer an audio solution that includes breakthrough streaming transmission technology with six layers of interference protection, all on a single piece of silicon that can be delivered at a distinctively lower total system cost.� �We are excited by the innovative products customers like Avnera are able to develop with our 0.18-micron RFCMOS process which is optimized for high performance and low power consumption,� said Chuck Fox, vice president of sales and marketing, Jazz Semiconductor. �In addition, by utilizing our suite of design enablement tools, they can speed their design cycles and improve their silicon, resulting in reduced cost and the ability to deliver products to the market more quickly.� About Avnera Corporation Avnera is a fabless analog semiconductor firm based in Beaverton, Oregon that has pioneered AvneraAudio technology, enabling breakthrough products in wireless audio, VoIP, and the powered speaker market to be delivered at disruptive price points. Avnera is funded by Altien Ventures, Bessemer Venture Partners, Best Buy, DAG Ventures, Intel Capital, JAFCO Ventures, Panasonic Venture Group, Polycom and Redpoint Ventures. Avnera is enabling numerous end-consumer products from major consumer electronics companies. More information is available at www.avnera.com. About Jazz Semiconductor Jazz Semiconductor,� a wholly owned subsidiary of Jazz Technologies,� Inc. (AMEX: JAZ), is the leading independent wafer foundry focused on Analog-Intensive Mixed-Signal (AIMS) CMOS process technologies. The company's broad portfolio of modular AIMS technologies includes RFCMOS and specialty CMOS processes, such as Enhanced RFCMOS, BiCMOS, SiGe BiCMOS, Bipolar-CMOS-DMOS, and High Voltage CMOS. These technologies are designed to produce analog and mixed-signal semiconductor devices that are smaller and more highly integrated, power-efficient, feature-rich and cost-effective than those produced using standard process technologies. Jazz also offers world-class design enablement tools to speed customers� time from design to revenue production. The Company serves customers in the wireless and high-speed wireline communications, consumer electronics, automotive and industrial end markets. Jazz executive offices and its U.S. wafer fabrication facilities are located in Newport Beach, CA. Jazz Semiconductor also has engineering, manufacturing, and sales support in Shanghai, China. For more information, please visit www.jazzsemi.com. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including the statements relating to growth in the analog IC market and the development and execution of our strategic business initiatives. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "expect," "anticipate," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "create" "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" and similar expressions. Forward-looking statements are based largely on expectations and projections about future events and future trends and are subject to numerous assumptions, risks and uncertainties, which change over time. Actual results and consequences, including any expected benefits and anticipated cost savings over competing technologies, could differ materially from those anticipated in forward-looking statements and you should not place any undue reliance on such forward looking statements. Factors that could cause actual performance to differ from these forward-looking statements include the risks and uncertainties disclosed in Jazz Technologies' filings with the SEC. Jazz Technologies' filings with the SEC are accessible on the SEC's website at http://www.sec.gov. Forward-looking statements speak only as of the date they are made. Jazz Technologies assumes no obligation to update forward-looking statements.