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Silicon Laboratories Completes Acquisition of Cygnal Integrated Products
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AUSTIN, Texas -- Silicon Laboratories Inc. (Nasdaq: SLAB) today announced it has completed the acquisition of privately held Cygnal Integrated Products, an Austin-based innovator of analog-intensive, highly integrated 8-bit microcontrollers (MCUs). Cygnal's portfolio of overmore than 50 general-purpose products will add breadth and diversity to Silicon Laboratories' existing product line of high-performance, application-specific mixed-signal ICs.

In connection with the acquisition, Silicon Laboratories issued approximately 1.2 million shares of common stock in exchange for all outstanding shares of Cygnal capital stock. Up to approximately 1.3 million additional shares of Silicon Laboratories common stock will be reserved for future issuance to the shareholders of Cygnal based on the achievement of certain revenue milestones following the closing of the transaction.

This acquisition allows Silicon Laboratories to address This acquisition gives Silicon Laboratories access to both the intersection between the 8-bit MCU market and the high-performance analog markets, which we believe is which are estimated by Gartner to be $5 billion and $9 billion respectivelya multi-billion dollar market opportunity,? said Dan Artusi, president and COO chief operating officer of Silicon Laboratories. The strong analog-intensive, mixed-signal emphasis nature of the MCU product family is a nice complements to our existing product portfolio lines while broadening the applications we serve. With a synergistic sales channel and supply chain and sales channel,Additionally, the fully intend supply chain and sales channel synergy will allow us to hit the ground running and quickly cultivatewith the newest addition to Silicon Labs broadening product portfolio.

With the close of this acquisition, Cygnal will be relocated to Silicon Laboratories' facilities in Austin before year-end, and its products will be sold under the Silicon Laboratories name. Silicon Laboratories will continue to support and invest in Cygnal's complete portfolio of MCU products. The acquisition is expected to be slightly dilutive to Silicon Laboratories in 2004, becoming accretive during 2005.

About Silicon Laboratories Inc.

Silicon Laboratories Inc. is a leading designer of high-performance, analog-intensive mixed-signal integrated circuits (ICs) for a broad range of applications. Silicon Laboratories' diverse portfolio of highly integrated, patented solutions is developed by a world-class engineering team with decades of cumulative expertise in cutting-edge mixed-signal design. The company has design, engineering, marketing, sales and applications offices throughout North America, Europe and Asia. For more information about Silicon Laboratories please visit

Cautionary Language

This press release contains forward-looking statements based on Silicon Laboratories' current expectations. The words "believe," "expect," "intend," "plan," "project," "will" and similar phrases as they relate to Silicon Laboratories are intended to identify such forward-looking statements. These forward-looking statements reflect the current views and assumptions of Silicon Laboratories and are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. Among the risks or factors that could cause actual results to differ materially from those in the forward-looking statements are as follows: risks associated with the completion of the Cygnal acquisition; the impact that failure to do so could have on the realization of the anticipated benefits of the acquisition; risks associated with the successful integration of Cygnal's business or the failure to do so in a manner that realizes the anticipated benefits of the acquisition; that Silicon Laboratories may not be able to maintain its historical growth rate; quarterly fluctuations in revenues and operating results; risks that Silicon Labs may not be able to manage strains associated with its growth; dependence on new product development; rapid technological and market change; difficulties developing new products that achieve market acceptance; difficulties managing international activities; credit risks associated with our accounts receivable; geographic concentration of manufacturers, assemblers, test service providers and customers in the Pacific Rim that subjects Silicon Laboratories' business and results of operations to risks of natural disasters, epidemics, war and political unrest; dependence on a limited number of products and customers; product development liability risks; intellectual property litigation risks; acquisition strategy; the competitive and cyclical nature of the semiconductor industry and other factors that are detailed in Silicon Laboratories filings with the SEC, including the Form 10-K filed January 22, 2003 and the Form 10-Q filed October 20, 2003.

CONTACT: Silicon Laboratories Inc., Shannon Pleasant, 512/464-9254

Dateline: 02/10/03