AUSTIN, Texas – May 15, 2001 – Cirrus Logic Inc. (Nasdaq: CRUS) today announced cost-reduction actions to align company resources and expenses with the new business model it announced in its May 2 earnings press release and conference call. At that time, the company said that it would de-emphasize its magnetic storage chip business to become the largest pure-play semiconductor company focused on consumer-entertainment electronics.

Layoffs today affected 120 employees worldwide, or about nine percent of the total workforce. The company anticipates annualized savings of approximately $10-$12 million from the combination of these layoffs and reductions in outside contractor expenses. The cost-savings are expected to have a small impact in the June quarter and full impact in the September quarter. The firm will take a special charge of approximately $1.5 –$2.0 million in the June quarter to cover reduction costs.

"These layoffs are difficult but appropriate to enable progress toward our improved business model and to enhance shareholder value," said David D. French, president and chief executive officer. "Our continuing strong investment in R&D will leverage our position as the world’s leading audio chip supplier and will accelerate our efforts to create more integrated entertainment products for the networked home.”

The company expects all affected employees will be informed by Wednesday, May 16.

About Cirrus Logic

Cirrus Logic is the premiere supplier of high-performance analog and DSP chip solutions for consumer entertainment electronics that allow people to see, hear, connect, and enjoy digital entertainment. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets mainstream audio, video and Internet entertainment applications in the consumer entertainment market. 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 the ability of the company to successfully consolidate operations and realize the savings anticipated from the layoffs; the ability of the company to successfully introduce more integrated network products for the home; the company’s shift away from magnetic storage and towards consumer-entertainment electronics; overall conditions in the semiconductor market; the rate of consumer electronics market adoption of new products; customer cancellations of orders, or the failure to place orders consistent with forecasts; unforeseen manufacturing difficulties; hardware or software deficiencies; 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; 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.

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