FREMONT, Calif. -- June 21, 1999 -- Cirrus Logic Inc. (NASDAQ:CRUS) today disclosed that it has signed an agreement with IBM to restructure their MiCRUS joint venture, a wafer fabrication facility based in East Fishkill, New York. Upon closing of this agreement, Cirrus Logic's capacity obligations in MiCRUS will be re-sized immediately to meet current business needs, and IBM will assume full control of the joint venture. Cirrus Logic's reduced capacity obligations will continue through December 31, 2000.

"By eliminating the fixed manufacturing costs associated with our MiCRUS joint venture, we have successfully achieved a major milestone in building our new business model to operate more efficiently," said David D. French, president and CEO of Cirrus Logic. "We now return to the fabless model which spurred Cirrus Logic's earlier growth, and in so doing, we are confident that both our capacity and advanced process technology needs will be met for the foreseeable future."

Upon closing of this agreement, Cirrus Logic will take a one-time restructuring charge in the current fiscal quarter, which ends June 26, 1999. The specific amount of this charge, along with the complete fiscal Q1 quarterly financial results, will be reported on July 21, 1999.

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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