AUSTIN, Texas – Nov. 9, 2000 – During its annual investor day, Cirrus Logic Inc. (NASDAQ:CRUS) today reiterated the financial guidance it gave on Oct. 18, 2000 for the company’s fiscal year 2001, which ends March 31, 2001. Cirrus Logic also showcased many of its customers’ next-generation products that meet the growing consumer demand for digital content and Internet-based entertainment. Powered by Cirrus Logic semiconductor chips, these showcased products include market-leading portable Internet audio players that use Maverick™ processors , advanced Crystal® DSP-based multi-channel audio/video receivers, and many more. The company also demonstrated its new digital PWM amplifier technology.

Following is the financial guidance that was reiterated:

3Q01 (ending Dec. 30, 2000)

• Fiscal 3Q01 core revenues are expected to grow at or above the 10 percent growth rate experienced this quarter. Revenues from end-of-life businesses are expected to decline to about $8 million from $12 million.
  
  
• Pro forma earnings per share are expected to be $0.25 to $0.27.
  
  
• Gross margins are expected to increase sequentially by 50 basis points.
  
  
• R&D is expected to increase in absolute dollars, and as a percentage of sales will remain slightly higher than the company’s long-term model of 14 percent to 16 percent.
  
  
• SG&A is expected to increase in absolute dollars, and will remain higher than the company’s long-term model of 10 percent to 12 percent.
  
  
• Net interest income is expected to be above $2.0 million.
  
  
• Cirrus has received $3 million income from the sale of Phone.com call options that mature on Dec. 22, 2000.
  
  
• Remaining convertible debt is expected to convert during the quarter, increasing equity and virtually eliminating debt.

Fiscal 2001 (ending March 31, 2001)

• Revenues from the core businesses are expected to grow in excess of 50 percent for the year. Revenues from end-of-life products should be approximately $35 million to $40 million.
  
  
• Pro forma earnings per share are expected to be $0.90 to $0.94.
  
  
• The effective tax rate is expected to be 10 percent.
  
  
• Capital spending is expected to be in the $25 to $35 million range, roughly equal to the company’s anticipated depreciation and amortization.

Company Model

The company will also reiterate its long-term business model, which was revised on its Oct. 18 conference call:

• Gross margins: in the 44 – 46 percent range
  
  
• Research and Development: In the 14 – 16 percent range
  
  
• Sales, General and Administrative: in the 10 – 12 percent range
  
  
• Operating Profit: In the 16 – 18 percent range

Investor Day

Cirrus Logic management is holding its Annual Investor Day today from 11:30 a.m. to 3:00 p.m. (PT) at the Tech Mart in Santa Clara, Calif. The conference will be webcast live and will also be archived on the company’s website at www.cirrus.com.

About Cirrus Logic

Cirrus Logic is a premier supplier of high-performance analog and DSP chip solutions for Internet entertainment electronics. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets high-volume audio, storage and communications applications. Cirrus Logic sells its products under the Crystal ®, Maverick™, and 3Ci™ brands as well as its own name. Founded in 1984 in Silicon Valley, Cirrus Logic operates from headquarters in Austin, Texas and major sites located in Fremont, California and Broomfield, Colorado as well as offices in Europe, Japan and Asia. More information about Cirrus Logic is available at www.cirrus.com.

Except for historical information contained herein, the matters set forth in this news release are forward-looking statements that are dependent on certain risks and uncertainties including such factors, among others, as overall conditions in the semiconductor market, customer cancellations of orders, or the failure to place orders consistent with forecasts, unforeseen manufacturing difficulties, or hardware or software deficiencies, or delays in customer qualification of key new products, achieving high utilization of the company's manufacturing resources, final determination of appropriate inventory write-downs based on the outlook at the end of each quarter, actual operational spending, obtaining financing sufficient to meet the company's needs and the risk factors listed in the company's Form 10-K for the year ended March 25, 2000, and in other filings with the Securities and Exchange Commission. The foregoing information concerning Cirrus Logic’s business outlook represents our outlook as of the date of this news release, and Cirrus Logic undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.