Consumer Electronics Giant LG Developing Next-Generation DVD Recorder Based on Cirrus Logic Chipsets, Software

LAS VEGAS – Consumer Electronics Show – Jan. 6, 2004 – Consumer Electronics giant LG announced today that it is developing its next-generation DVD recorder, which is based upon audio and video chipsets and software from Cirrus Logic Inc. (Nasdaq: CRUS). LG expects to begin volume production of its new DVD+/-RW dual recorder model, the 5810-MJC, in the June calendar quarter.

“LG is the world’s sales leader in DVD players, and we look forward to becoming a leader in the high-growth DVD recording market,” said Dong-Jin Choi, vice president, Digital AV Division, LG. “Cirrus Logic is a leader in DVD recording technologies, providing LG with a complete set of audio and video DVD processors and mixed-signal chipsets and software that will give consumers a rich set of features on our DVD recorder models — all at a great cost.”

Cirrus’ DVD recording complete hardware/software reference design integrates Cirrus’ flagship CS98201 DVD processor and Cirrus’ newest MPEG A/V CODEC, the CS92688. Cirrus audio converters, the CS5333 analog-to-digital converter and the CS4360 six-channel digital-to-analog converter, round out the platform, giving LG a comprehensive, market-ready DVD recorder solution that delivers the hardware, software and manufacturing tool kit necessary to help LG quickly establish the 5810-MJC in the market.

“LG’s decision to use the Cirrus Logic chipset and software platform for pre-production of its new +/-RW DVD recorder is a testimonial to Cirrus’ lead in this rapidly growing market,” said Jack Guedj, vice president of Video Products Marketing, Cirrus Logic. “Driving down bill of material cost for DVD recorders is key to providing lower-price DVD recorders to consumers and fueling the rapid introduction of new products. We expect to enable LG’s continued success with its new 5810-MJC model as it ramps up volume production in Q2 2004.”

Cirrus has been successful in attracting customers such as LG who are seeking a cost-effective platform because Cirrus’ two-chip platform, based on QFP (Quad Flat Pack) packages, enables a two-layer board design that is significantly more cost-effective than the four-layer board required for high-pin-count, single-chip BGA packages. Moreover, for many manufacturers, QFP packages enable an easier and lower-cost manufacturing process.

The 5810-MJC, LG's new DVD+/-RW dual recorder model, is expected to provide consumers with high-quality audio and video record and playback for permanent archiving on optical media and playback of recorded DVD discs on the installed base of DVD players worldwide.

Consumer DVD recorders, including standalone DVD recorders, combo units and home-theater-in-a-box devices that record video digitally, are expected to become one of the fastest growing segment in digital entertainment during the next several years, with possible unit sales of up to 51 million by 2006 (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 Logic’s reference platforms are designed to help customers such as LG drive volume production of more affordable DVD recording products.

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.

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Safe Harbor Provision

Except for historical information contained herein, the matters set forth in this news release, including our expectations of the growth of the consumer DVD recorder market, 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: overall conditions in the semiconductor market; the expansion of the consumer DVD recorder market; hardware or software deficiencies in Cirrus’ DVD recorder reference designs; 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.

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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