Cirrus Logic Enables Drive Manufacturers to Lower DVD Recorder System Cost

New Single-Board System Aims at Price Sweet Spot for Mass-Market Adoption

HONG Kong – Hong Kong Electronics Fair – Oct. 13, 2003 – Cirrus Logic Inc. (Nasdaq: CRUS) announces that it is collaborating with its drive manufacturing suppliers on the design of single-board DVD recorder platforms that are expected to significantly lower costs for consumer DVD recorders in 2004.

At the forefront of these single-board DVD recording platforms, BenQ, a leading DVD recorder drive manufacturer, has been working closely with Cirrus to provide a complete and powerful solution to consumer electronics OEMs wishing to drive DVD recording into the consumer mass-market adoption. BenQ believes that the BenQ drives and Cirrus Logic semiconductors offer a compelling solution for CE OEMs in this highly competitive marketplace.

This single-board DVD recorder reference design includes the mechadeck (combination of the optical pick-up unit and mechanical drive parts) and a single board that integrates both the digital front-end components of a DVD-recordable drive with the digital back-end electronics — including Cirrus Logic DVD processors and MPEG encoders. The result is significantly reduced overall parts count and cost compared to traditional DVD recorder designs. By teaming with leading drive suppliers, Cirrus is also providing a ready supply of DVD recording drives to its customers, amidst a tight global supply of DVD-recordable drives for this fast-growing market. As a result, Cirrus and its drive suppliers anticipate significantly lower bill of materials costs for manufacturers, resulting in dramatically lower prices for consumer DVD recorders, possibly in the low $200s by the end of 2004.

"A costly bill of materials — drive components, chips and other hardware — is the number one factor keeping most DVD recorders above $300 in today's market," said Brian Heuckroth, vice president of DVD Recording, Cirrus Logic. "We are teaming up with BenQ to eliminate redundant components and integrate much of the traditional hardware found in today’s DVD recorders. This will bring DVD recording price points to the level that brought DVD players to the big time way back in 1999."

"In 1999, the DVD player market began to soar, primarily because many players were available for less than $300," said Michelle Abraham, senior analyst, In-Stat/MDR. "I expect a similar trend in the consumer DVD recorder market. Cirrus' single-board platform with its drive partners, such as BenQ, will help push DVD recorder prices into the low $200 range in 2004, at which point we foresee a sharp upturn in consumer demand."

DVD recorders are expected to become the fastest-growing segment in digital entertainment during the next several years, with expected unit sales of up to 51 million by 2007 (source: IDC, September 2003). These devices will allow consumers to upgrade more than 30 years of VCR technology and begin to store and view content in the digital domain. Cirrus' reference platform is designed to help customers such as Mustek, Sampo, CyberHome, and Profilo drive volume production of more affordable DVD recording products.

The new reference design will be sampling to Cirrus and BenQ customers in October 2003 and will be in volume production in the first quarter of 2004.

Cirrus Logic Inc.

Cirrus Logic is a premier supplier of high-performance analog, mixed-signal and digital processing solutions for consumer entertainment electronics, automotive entertainment and industrial product applications. Building on its global market leadership in audio ICs and its rich mixed-signal patent portfolio, Cirrus Logic targets audio, video and precision mixed-signal applications in these growing markets. The company operates from headquarters in Austin, Texas, with offices in California, Colorado, Europe, Japan and Asia.

Safe Harbor Statement

Except for historical information contained herein, the matters set forth in this news release, including our expectations of lower costs for consumer DVD recorders, are forward-looking statements. These forward-looking statements are based on management's current expectations and are subject to certain risks and uncertainties that could cause actual results to differ materially from management's current expectations and the forward-looking statements made in this press release. These risks and uncertainties include, but are not limited to, the following: our ability to successfully design a single-board DVD recorder platform; overall conditions in the semiconductor market; the expansion of the consumer digital entertainment electronics market; pricing pressures; hardware or software deficiencies; a shortage of manufacturing capacity; and the risk factors listed in our Form 10-K for the year ended March 29, 2003, and in other filings with the Securities and Exchange Commission. The foregoing information concerning our expectations represents our outlook as of the date of this news release, and we undertake no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

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Cirrus Logic and Cirrus are trademarks of Cirrus Logic Inc. All other product names noted herein may be trademarks of their respective holders.

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