"The technology synergy between Micrel and Zilog will enable us to jointlydevelop easy-to-use single board computer solutions that will allow systemdesigners to quickly and cost-effectively enter targeted market segments,"noted Scott Ward, vice president analog business unit, Micrel. "Zilog iswell known in growing market segments including industrial control, remotecontrol, and motion sensors/alarms, and has successfully developed keysystem software intellectual property for these markets. We are verypleased to be working with them."

"Micrel is an industry leader in the RF markets with its RadioWire® and QwikRadio® product lines," said Mike Speckman,vice president worldwide sales, Zilog. "The IC technologies that Micrel hasdeveloped, coupled with Zilog's application-specific solutions, such as ourZ8 Encore! XP® Flash Microcontrollers will prove a formidable solutionfor the global marketplace. In addition, we are delighted to have enteredinto this collaboration with Micrel, given the compelling synergy of ourproducts."

The MICRF505 is a true single chip, frequencyshift keying (FSK) transceiver intended for use in half-duplex,bidirectional RF links. The multi-channeled FSK transceiver is intended forUHF radio equipment in compliance with the North American FederalCommunications Commission (FCC) part 15.247 and 249, as well as theEuropean Telecommunication Standard Institute (ETSI) specification, EN300220. The MICRF506, a true single chip FSKtransceiver solution, is designed to operate in the unlicensed 433MHz ISMband. The chip supports data rates up to 200kbps and is part of Micrel'srecently launched RadioWire(TM) family covering the low UHF band.The chip is aimed at the automotive, alarm and security, telemetry andPersonal Area Network (PAN) and advanced toy markets and is suited for awide variety of applications including gas, water and energy meters; home,building and security monitors; industrial controls, wireless headset andsports equipment, and remote control and game pads.

The Z8 Encore! XPF1680 Microcontroller Series is a family of highly integrated, lowvoltage/low power, high performance 8-bit mixed-mode Flash microcontrollersdesigned for use in a variety RF solutions such as RFID readers, remotecontrols and automatic meter readers. The Z8 Encore! XP Z81680Microcontroller Series, based on a 20 MHz register-based eZ8 CPU core withmemory-to-memory arithmetic operation, includes up to 24 Kbytes Flashmemory with in-circuit programming capability, up to 2 Kbytes register RAMand 256 Bytes EEPROM capability, a built-in internal precision oscillatorwith programmable output from 43.2 kHz to 11 MHz and multiple serialinterfaces including two LIN UARTs, SPI, and I2C. This series is also a lowpower series, supporting 1.8-3.6 V operation with very low ACTIVE, HALT andSTOP mode currents, and many power saving features.

About Micrel Inc.

Micrel Inc., is a leading global manufacturer of IC solutions for theworldwide analog, Ethernet and high bandwidth markets. The Company'sproducts include advanced mixed-signal, analog and power semiconductors;high performance communication, clock management, Ethernet switch andphysical layer transceiver ICs. Company customers include leadingmanufacturers of enterprise, consumer, industrial, mobile,telecommunications, automotive, and computer products. Corporationheadquarters and state-of-the-art wafer fabrication facilities are locatedin San Jose, CA, with regional sales and support offices and advancedtechnology design centers situated throughout the Americas, Europe andAsia. In addition, the Company maintains an extensive network ofdistributors and reps worldwide. Web: http://www.micrel.com.

About Zilog, Inc.

Zilog is a global supplier of application specific, embedded system-on-chip(SoC) and single board computer solutions for secured transactions,consumer electronics and industrial application and an industry leader inremote control and universal IR database solutions. From its roots as anaward-winning architect in the microprocessor and microcontroller industry,Zilog has evolved to become a leader in production-ready and custom-builtSoC solution sets. Zilog is headquartered in San Jose, California, andemploys approximately 500 people around the world, with sales offices inAsia, Europe, and North America. For more information about Zilog and itsproducts, visit http://www.zilog.com/.

QwikRadio is a registered trademark of Micrel Inc. The QwikRadio ICs weredeveloped under a development agreement with AIT of Orlando, FL. RadioWireis a registered trademark of Micrel, Inc.

Zilog and Z8 Encore! XP® are trademarks or registered trademarks ofZilog, Inc. in the United States and in other countries.

All other brands or product names are the property of their respectiveholders.

Contacts:Julieanne DiBeneMicrelMarketing Communications1-408-474-1276Email ContactDaniel FranciscoFrancisco Group for Zilog916-812-8814Email Contact