ZL Zarlink Semiconductor

OTTAWA, CANADA (NYSE: ZL) today launched its newest family of voice interface solutions, the VE890 series, optimized for the international digital subscriber line (DSL) market. With market reports showing a recent steep upward trend in DSL deployments throughout Europe, this latest voice solution allows Zarlink to take an even larger role in the worldwide deployment of Voice-over-Internet (VoIP) telephony.

"We're seeing a fundamental shift from fixed telephone access lines to bundled voice, video and internet services over DSL and other broadband access networks," said Mark Showalter, directing analyst for broadband networks at Infonetics Research, an international market research firm specializing in the communications industry. "As a result, the DSL IAD market more than doubled from below five million units shipped in 2005 to almost 12 million in 2007, with the EMEA market approaching 80 percent of these shipments. All the major incumbent operators in EMEA, including BT, France Telecom, and Deutsche Telecom, are deploying DSL."

"Incumbent DSL operators often offer VoIP as a second line to augment the customer's traditional phone service," said Rick Bye, senior segment marketing manager for Zarlink. "The VE890 enables seamless integration of the DSL gateway with the public switched telephone network and VoIP services. With the new Zarlink DSL-optimized chipsets we can offer customers a single source for a complete portfolio of voice interface solutions for all VoIP applications."

The new Zarlink VE890 chipsets provide customers an integrated and modularized approach that meets the needs of VoIP service providers worldwide. Whether connecting over the Internet Protocol or looping back to the existing public switched telephone network (PSTN), the VE890 conforms to worldwide standards for telephony interfaces (FXS and FXO).

"We have been successfully using Zarlink's Legerity voice product line in our DSL IADs for several years," said Paulo Stecca, senior vice president of Telsey S.p.A., a leading supplier of broadband access equipment, based in Treviso, Italy. "The introduction of the new VE890 product family, with its FXO capability, allows us to immediately support new requirements coming from some of our European customers."

Based on the Zarlink VE880 low-power high performance foreign exchange station (FXS) architecture, the VE890 provides full worldwide programmability with the lowest power consumption in the industry, half that of the competition. In addition, this latest product series offers support for VeriVoice(TM) Auditor line testing. The new foreign exchange office (FXO) functionality of the VE890 includes a Direct Access Arrangement (DAA) with market leading common noise rejection and radio frequency (RF) immunity, and a unique impedance-matching capability that eliminates echo to improve voice quality. The VE890 solutions are offered in a common board design kit requiring the fewest number of external components to minimize both component and development costs.

Availability and Additional Information

The VE890 chipset devices, reference designs and development platforms are now available and in production. For more information on Zarlink's Legerity product line, please visit www.legerity.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.

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 dependence on revenue generation from our legacy products in order to fund development of our new products; our ability to successfully integrate Legerity and any businesses acquired in the future; any potential undisclosed liabilities associated with the Legerity acquisition; 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.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink Semiconductor Inc.

Contacts: Zarlink Semiconductor Inc. Ed Goffin Media Relations 613-270-7112 edward.goffin@zarlink.com Zarlink Semiconductor Inc. Mike McGinn Investor Relations 613-270-7210 mike.mcginn@zarlink.com

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