NEW YORK, NY--Sept. 24, 1999-- Cirrus Logic Inc. (NASDAQ:CRUS) and Digital Harmony Technologies Inc. today announced a licensing agreement that aims to proliferate affordable, high-bandwidth digital home entertainment systems.

Under the terms of the agreement, Cirrus Logic has licensed the rights to Digital Harmony's IEEE 1394 intellectual property, thereby merging its Crystal audio expertise with Digital Harmony's leadership in the non-proprietary high-bandwidth data bus.

By harnessing Digital Harmony's IEEE 1394 firmware and design modules, Cirrus Logic plans to produce the industry's first non-proprietary 1394 system-on-chip (SOC) solution for use in digital consumer and professional audio/video equipment.

Under Cirrus Logic's Crystal audio brand, the 1394 technology promises to complement solutions for a range of audio systems, including consumer electronics, computer, professional audio and automotive equipment.

Digital Harmony Technologies, provider of the 1394 protocol stack firmware for the SOC, will test and certify equipment containing the new Cirrus Logic SOC, and provide its brand logo as a "seal of approval'' ensuring product interoperability.

"This agreement enables us to become the first semiconductor manufacturer to bring the advantages of 1394 technology within the reach of the broad consumer market,'' said Skip Taylor, vice president of marketing for Cirrus Logic's Crystal Audio Products Division.

"Building on our Crystal audio engineering expertise and our experience as the audio chip solutions leader, we plan to eliminate the cost barrier that has blocked digital A/V products from becoming ubiquitous.'' Independent market research firm In-Stat predicts that the 1394-enabled consumer equipment market will reach 12 million units in the year 2000, and 40 million units in the year 2002.

According to Digital Harmony Technologies president and CEO, Greg Bartlett, "Cirrus Logic's system-on-chip solution will be a breakthrough product in terms of its level of integration and low cost.

"We already have licensing agreements with many of the leading makers of A/V equipment in the U.S., Europe and Japan. With the availability of Cirrus Logic's robust 1394 system-on-chip and Digital Harmony's firmware, manufacturers can lower their R&D risk, guarantee interoperability and get to market quickly.''

Digital Harmony has licensed its 1394 technology to several consumer electronics and professional audio manufacturers including JBL, Harman/Kardon, Boston Acoustics, Meridian Audio, Infinity, Lexicon, Peavey Electronics, Loewe, Madrigal/Mark Levinson, Denon, Onkyo, Panja (formerly AMX/Phast), Stellar One, Go Video, and California Audio Labs.

Known as FireWire(TM) (Apple Computer) and iLINK(TM) (Sony Corp.), the Digital Harmony 1394 interface provides an intelligent high-speed connection to all types of consumer electronics, including digital audio systems, game consoles, digital cameras, digital VCRs, web-enabled TVs, set-top boxes, DVD players, PCs and peripherals.

In contrast to today's commonly used serial interconnection methods, such as S/PDIF, USB and AES-EBU, the robust 1394 technology will support high quality streaming audio/video at a serial transfer rate of 400 Mbps.

It allows consumers to interconnect home entertainment equipment in virtually any configuration they like. Linking equipment is similar to plugging a telephone into a jack; the devices are powered through the system and do not require a hub to route them as in a computer network. Moreover, information can be conveyed to multiple users simultaneously without degradation of content.

Pioneering System-On-Chip

The new Cirrus Logic SOC is targeted for production in middle to late 2000 and is expected to cost a fraction of today's 1394-based solutions. In addition to the Digital Harmony IEEE 1394 design modules, the SOC will embed an ARM microprocessor and a Link Layer Controller.

For customers who choose to create their own firmware, Cirrus Logic will also offer the SOC without the Digital Harmony firmware.

Digital Harmony Technologies Inc.

Digital Harmony Technologies was the first company to demonstrate audio-on-1394 and the first to demonstrate a multi-vendor 1394 home entertainment system with all audio, video and control commands on the IEEE-1394 bus.

Based in Seattle, Wash., Digital Harmony Technologies (www.digitalharmony.com) offers a complete interoperability solution for IEEE-1394 home entertainment products, providing Digital Harmony firmware that implements open standards, running on Digital Harmony compliant integrated circuit processors. Digital Harmony Product Certification Centers ensure product compatibility, using independent and rigorous testing measures.

OEM licensees also have access to a growing family of 1394 audio/video device reference designs, further reducing the time-to-market of new devices. Consumers rely on the Digital Harmony logo as a seal of approval -- an indication from an objective, third-party source that their digital home entertainment product will operate harmoniously in a 1394 home network.

Cirrus Logic, Inc.

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.

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Note to Editors: Cirrus Logic is a registered trademark of Cirrus Logic Inc. Digital Harmony is a registered trademark of Digital Harmony Technologies, Inc. All other product names noted herein may be trademarks of their respective holders.

Investor contact: Steve Madigan, Digital Harmony Technologies, 206/682-3600, steve@digitalharmony.com.