FREMONT, Calif. -- January 19, 2000 -- Cirrus Logic Inc. (NASDAQ:CRUS) today announced financial results for the third quarter of fiscal 2000, which ended December 25, 1999. Net revenues grew to $150.8 million, approximately 13 percent over the prior quarter. Net income was $27.9 million compared to a net loss of $9.4 million in the prior quarter. Diluted net earnings per share was $0.40 compared to a diluted per share loss of $0.15 in the prior quarter.

Included in net income was a $34.3 million gain on the partial sale of the company's investment in marketable securities of Phone.com Inc. (Nasdaq: PHCM). On a pro forma basis, income from operations, before net interest expense, would be approximately $6.0 million compared to $3.2 million, on a comparable basis in the prior quarter. Pro forma income from operations excludes the amortization of acquired intangible assets, asset abandonment charges, and acquired in-process R&D. On a pro forma basis, after net interest expense, the net income would be approximately $0.05 per share.

"We're pleased once again to report sequential growth, further demonstrating the early success of the new Cirrus Logic," said David D. French, president and chief executive officer. "Thanks to the continuing expansion of our bookings and backlog during the December-ended quarter, we continue to be positive about the progress we have achieved, as we set our sights on being the leading provider of high-performance analog and DSP solutions for entertainment appliances." French noted that the fiscal Q3 revenue increase was fueled by record demand for the company's market-leading Crystal® audio products as well as a ramp to high-volume shipments of its highly integrated 3Ci chip for hard disk drives and record shipments of its encoder/decoder chips for CD-RW drives.

Cirrus Logic

Cirrus Logic is a premier supplier of high-performance analog circuits and advanced mixed-signal chip solutions. The company's products, sold under its own name and the Crystal® product brand, enable system-level applications in mass storage, audio and precision data conversion. Additional 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 27, 1999, and in other filings with the Securities and Exchange Commission.

# # #

Cirrus Logic news releases may be obtained by fax by dialing 1-800-359-6414, or by dialing 510-249-4200 from outside the United States.

Summary financial data follows: