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ZarlinkSemiconductor (55PT)

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Thursday 06 December, 2001


Product Launch

Zarlink Semiconductor Incorporated
6 December 2001

Zarlink introduces breakthrough DMT (Discrete Multi Tone) transceiver chip for
                              high speed modems

- Zarlink chip is key to designing full-rate VDSL (Very high speed Digital
Subscriber Line) modems for global markets

Ottawa, Canada - Zarlink Semiconductor (NYSE/TSE:ZL) today
announced that it has produced silicon samples of the industry's first DMT-
based data transceiver to fully meet international standards for four-band,
12MHz (megahertz) VDSL. Using Zarlink's DMT transceiver, equipment companies
can boost the efficiency of VDSL modems which deliver broadband services -
such as multiple data, video and voice channels, plus high-speed internet - to
homes and businesses.

VDSL is an emerging standard for the symmetrical (same speed in both
directions) transmission of high bandwidth services at up to 52 Mb/s over
short distances using standard copper telephone lines. However, in real-world
conditions, noise and other line interference degrades signal integrity,
reducing the speed and distance of VDSL transmissions. DMT modulation
technology from Zarlink helps to overcome interference by dynamically
configuring the transmitted signal to match the line conditions, resulting in
higher quality, error-free communications at higher data rates, over longer

'The industry recognises that VDSL modems designed with DMT transceivers
will deliver significantly improved speed and distance performance compared to
modems using today's transitional technology,' said Andrew Faulkner, VDSL
product manager, Zarlink Semiconductor. 'To meet this need, we're developing a
flexible, interoperable single-chip DMT data transceiver that will ease the
design of full-rate, VDSL-compliant modems for customer premises and central
office applications.'

DMT transceiver meets global standards

To implement the VDSL standard and improve system performance, Zarlink
has developed advanced algorithms and several proprietary features, such as RF
(radio frequency) interference cancellation and PAR (peak-to-average ratio)
reduction. The result is a highly flexible DMT transceiver that meets the
latest standards for VDSL over the full four-band 12 MHz spectrum, from the
ITU (International Telecommunications Union, ANSI (American National Standards
Institute), and ETSI (European Telecommunications Standards Institute).

Zarlink's transceiver chip fully supports either the two-, three-, or
four-band approaches specified in the standards, and facilitates
interoperability. Robust data transfer is ensured using FEC (forward error
correction) techniques, including Reed Solomon with interleaving.

Zarlink's DMT transceiver can be configured to meet all specified band
plans (997, 998 and FX plan). With DMT technology, VDSL services can easily
co- exist with other services in the binder group, including Asynchronous DSL
(ADSL), ISDN (integrated services digital network), and POTS (plain old
telephone service).

Modems equipped with the transceiver can be configured to either protect
or utilise spectrums usually allocated to ISDN or ADSL. For example,
configuring the optional ISDN band (25 to 138kHz (kilohertz)) as an upstream
transmission band provides a boost of 1.5 Mb/s. This improves symmetrical
operation by supplementing the heavily attenuated, higher frequency upstream

Zarlink's transceiver provides all the physical layer hardware to
implement the VDSL standard. The transceiver chip connects to standard ATM
(asynchronous transfer mode) devices at the data link layer using a Utopia
level-2 interface, and to standard Ethernet devices using an MII (media
independent interface).

Zarlink is now sampling its DMT transceiver to select alpha customers.
Advanced documentation is available under non-disclosure, including reference
designs for both single and multi-port designs.

About Zarlink Semiconductor

Zarlink employs its formidable analogue, digital and mixed-signal
capabilities to offer the most compelling products for wired, wireless and
optical connectivity markets and ultra low-power medical applications. For
more information, visit .

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 risks discussed in documents filed by the Company with the
Securities and Exchange Commission. Investors are encouraged to consider the
risks detailed in those filings.

A high resolution photograph suitable for publication is available at . Zarlink and the Zarlink Semiconductor logo are
trademarks of Zarlink Semiconductor Inc.

Fact file

This file accompanies the news release issued Dec. 6, 2001 and titled
Zarlink Introduces Breakthrough DMT (Discrete Multi Tone) Transceiver Chip for
High Speed Modems.

    The VDSL Standard

    - Uses existing copper plant (telephone cables)

    - Operates in 12MHz band, data rate up to 52 Mb/s, reaches up to

      5000 ft/1.5 km

    - Symmetrical or asymmetrical data transmission

    - Spectrally compatible with other xDSL technologies

    - Maintains lifeline POTS

VDSL allows the delivery of broadband services including multiple voice
channels, streaming video applications, and always-on Internet over existing
telephone cables.

    DMT technology

    - DMT offers more reliable data transmission under noisy, real world

    - DMT uses multiple sub carriers (4096) to modulate information onto the

    - DMT solutions dynamically configure the output PSD (power spectral

      density, or signal amplitude) to match line conditions. DMT
      transceivers achieve this by running 'adaptation' algorithms that
      accommodate changes in line characteristics.

    DMT data transceiver - standard feature set

    - Compliant to latest ETSI, ITU and ANSI T1E1.4 VDSL standards

    - Supports all band plans; 997, 998 & Fx plan

    - FDD supporting full four-band VDSL bandwidth (12MHz)

    - Data rate configurable in increments of 64Kbps and up to 52Mb/s

    - Reed Solomon encoders/decoders, interleaving with fully integrated SRAM

    - Initialisation, adaptation and timing recovery algorithms

    - Support for both MII (Ethernet) and Utopia (ATM)

    DMT data transceiver - advanced feature set

    - Fast initialisation

    - On-chip smart-RAM DSP processor for fast characterisation

    - Integrated SOC message encoder/decoder

    - Peak-to-Average-Ratio (PAR) management

    - Programmable decimation and interpolation filters

    - RF interference control

    - Optional utilisation of the ISDN band to support upstream or downstream
      data rate

DMT-based data transceivers enable VDSL modem designs that are flexible,
high performance, small in size, low on power, cost effective and fully
standards compliant.

For further information: Michael Salter, Media Relations, +1-613 270-7115, ; Chris Brennan, High Road Communications,
+1-613 236-0909,