FREMONT, Calif. -- October 20, 1999 -- Cirrus Logic Inc. (NASDAQ:CRUS) today announced financial results for the second quarter of fiscal 2000, which ended September 25, 1999. Net revenues grew sequentially to $132.8 million and, excluding charges that related to the acquisition of AudioLogic Inc. during the quarter, operating income was $2.6 million. Including one-time charges totaling $8.0 million related to the AudioLogic acquisition for in-process research and development expenses, the company reported a net loss of $9.4 million and a diluted per share loss of $0.15. On a pro-forma basis, excluding the one-time acquisition costs, the net loss after interest expense was approximately $.02 loss per share.

"With our quarterly increase in both sales and operating profit, we have begun to show tangible progress in building the new Cirrus Logic," said David D. French, president and chief executive officer. French pointed to the recent AudioLogic acquisition as a good example of how the new Cirrus Logic is strengthening its position in key growth markets. "Just as extended battery life, expanding feature sets and miniaturization have driven explosive demand for cellular phones, AudioLogic's technology in tandem with our Crystal® audio portfolio promise to revolutionize the market for portable entertainment devices by enabling longer battery life, shorter time-to-market and smaller form factors."

Cirrus Logic's quarter end balance sheet reported $100.3 million in cash, as well as the valuation of its investment in Phone.com, Inc.(Nasdaq: PHCM), which recently became a publicly held company. Cirrus Logic's stock holdings in Phone.com were valued at approximately $81.9 million at the close of the fiscal second quarter.

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: