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Mitel Corporation. (55PT)

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Monday 25 June, 2001

Mitel Corporation.

Re Zarlink Semiconductor

Mitel Corporation
25 June 2001

Zarlink Semiconductor chipset to be used in new Panasonic TDMA cell phones

Ottawa, Canada - Zarlink Semiconductor (formerly Mitel
Semiconductor) today announced that Matsushita Mobile Communications
Development Corporation of U.S.A., best known by its Panasonic brand name, has
included three of Zarlink's radio frequency (RF) chips in Panasonic's
ProMax(TM) and DuraMax(TM) TDMA dual-band, dual-mode cellular phones.

Zarlink is supplying three key RF integrated circuits in the radio design
for Panasonic's TDMA dual-mode handset to support Panasonic's re-entry into
the North American cellular market. Panasonic is scheduled to release its next
TDMA dual-mode handset in North America during 2001 and is using Zarlink's up-
integration of two existing circuits for a more cost-effective solution.
Zarlink hopes to continue addressing Panasonic's needs in future programs
incorporating newer cellular standards and further integration.

The ProMax and DuraMax handsets are now in volume production and
available through AT&T Wireless. The two handsets incorporate Zarlink's MGCR01
IF receiver, MGCM01 baseband interface, and MGCT02 transmitter, which provide
a high-performance receive and transmit path for Panasonic's dual-mode
cellular phones.

Zarlink's RF chipset, targeted at dual-mode IS 136 TDMA/AMPS handsets,
reduces external component count, cost, size, and power consumption. The
chipset is available now and sells for about US $8 in million-piece

Roadmap targets 2.5G cellular standards

Zarlink's next chipset, which is sampling now, integrates the IF receiver
and baseband interface into a single device that combines with Zarlink's
MGCT04 transmit circuit to provide a 60 percent reduction in board space.

About Matsushita Family of Companies

Matsushita companies support industrial growth by supplying high-quality
electronic components and devices to companies around the world.

About Zarlink Semiconductor

Zarlink employs its formidable analog, digital and mixed-signal
capabilities to offer the most compelling products for wired, wireless and
optical connectivity markets and ultra low-power medical applications. Zarlink
is trading as Mitel Corporation on the New York and Toronto stock exchanges
under the ticker symbol 'MLT' until the new legal name of the company -
Zarlink Semiconductor Inc. - is approved by shareholders. 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.

ProMax and DuraMax are trademarks of the Matsushita family of companies.
Zarlink Semiconductor and the Zarlink logo are trademarks of Mitel

For further information: Claire Nagy, Media Relations, tel: +1 613 270-7317,
[email protected]; Tiana Wiersma, HIPR, Inc., tel: +1 503 222-1257,
[email protected] .


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