AUSTIN, Texas – August 30, 2001 – Cirrus Logic Inc. (Nasdaq: CRUS), the premier supplier of high-performance analog and DSP chip solutions for consumer entertainment electronics, announced it has signed a five-year agreement with Central Semiconductor Manufacturing Company Limited (CSMC), China’s pioneer open foundry.

This wafer foundry services agreement aligns Cirrus Logic's analog and digital semiconductor solutions with CSMC’s cost-competitive and quality-assured manufacturing. With extensive experience in China supported by efficient local delivery, CSMC reinforces Cirrus Logic’s position in the China market.

“CSMC strengthens our consumer entertainment strategy by adding a significant local manufacturing resource for us in the China market,” said Jerry Gray, vice president of worldwide operations for Cirrus Logic. "With this capability, Cirrus Logic will be in a better position to leverage China’s expected accession to the World Trade Organization."

This collaboration will begin with the manufacturing of CMOS-based mixed signal consumer ICs, and both companies expect a swift progression to a wider range of products and services.

"The contemporary IC market requires companies to engage with their fabs in ever more value-added relationships. We are pleased to provide Cirrus Logic with the most desirable manufacturing solution," said Dr. Peter Chen, Chairman of CSMC. “Our cost-competitive manufacturing and efficient local delivery system provides Cirrus Logic with substantial savings in import duty, value-added tax and transportation cost and time, helping Cirrus Logic’s penetration into China, now the fastest growing semiconductor market."

China is expected to become the second largest market in the world by 2010. According to Dataquest, the China semiconductor market is projected to grow at a rate of 6-13 percent in 2001, in contrast to an expected decline of roughly 25 percent for the rest of the world. CSMC, which pioneered the open foundry model in the People's Republic of China, is fuelling this impressive growth. For the first half of 2001, CSMC sustained a utilization rate of more than 80 percent. It reflects the soundness of the China market and is evidence of the market acceptance of the open foundry model.

About Cirrus Logic

Cirrus Logic is the premier 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.

About CSMC

CSMC was founded in 1997 in Hong Kong with a strong team of international industry professionals. Its fab is located in Wuxi, Jiangsu Province with a 6-inch production line at a capacity of 11,000 wafers per month, and a 5-inch production line at 7,000 wafers per month. CSMC's expertise and focus on the China market provide a timely and much sought after service for a wide range of Chinese and international customers. The service is framed by a larger strategy of delivering market-oriented, quality assured and cost competitive one-stop manufacturing solution in China through trusted and collaborative relationships. The company’s sales offices are located in Hong Kong; Hsin Chu, Taiwan; Tokyo, Japan and Wuxi, China.

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 CSMC’s ability to manufacture wafers consistent with the Company’s instructions; the ability of the Company and CSMC to successfully work together; the ability of the Company to close its pending acquisitions of ShareWave, Inc., LuxSonor Semiconductors, Inc. and Stream Machine Company; the ability of the Company to successfully integrate these acquisitions into its operations and realize the anticipated synergies; the ability of the Company to complete future acquisitions to acquire additional technologies; overall conditions in the semiconductor market; the resolution of the Company’s litigation with Western Digital; the Company’s shift away from magnetic storage and towards consumer-entertainment electronics; the rate of consumer electronics market adoption of new products; customer cancellations of orders, or the failure to place orders consistent with forecasts; hardware or software deficiencies; delays in customer qualification of key new products; final determination of appropriate inventory write-downs based on the outlook at the end of each quarter; the possibility of additional inventory write-downs based on the Company’s inability to predict future demand in the market; actual operational spending; and the risk factors listed in the company's Form 10-K for the year ended March 31, 2001, 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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