AUSTIN, Texas - October 3, 2001 - Cirrus Logic Inc. (Nasdaq: CRUS), the premier supplier of high-performance analog and DSP chip solutions for digital entertainment, today completed its acquisition of ShareWave, Inc., which pioneered the only wireless LAN (WLAN) semiconductor solution capable of seamlessly sharing high-quality audio and video entertainment throughout the home, based on IEEE 802.11 standards. This acquisition significantly strengthens the connectivity segment of Cirrus Logic's vision, which is to provide semiconductor solutions that allow people to hear, see, connect and enjoy digital entertainment.

Cirrus Logic issued approximately 3.4 million shares of its common stock for privately held ShareWave. As of August 31, 2001, Cirrus Logic had approximately 74 million shares outstanding. Tangible net assets of ShareWave total approximately $2 million. Cirrus estimates it will take a one-time non-cash charge in the December quarter for acquired in-process research and development in the range of $13 million to $18 million related to the acquisition. The remaining purchase price will be allocated primarily to amortizable intangibles and goodwill. Based on Cirrus Logic's current forecasts, the acquisition is anticipated to be accretive to pro forma EPS within three quarters following the closing. Revenue from ShareWave products is expected to grow from less than $2 million in the December 2001 quarter to $20 million to $30 million in fiscal 2003, depending on a variety of factors, including the rate at which consumers adopt wireless network solutions for in-home entertainment. Long-term gross margins are expected to be in excess of 50 percent. Cirrus Logic will provide overall company financial guidance when it reports quarterly results after the market closes on October 24.

"Customer response to ShareWave products has been very positive, evidenced by several significant design wins with top-tier global consumer electronics companies," said David D. French, president and chief executive officer of Cirrus Logic. "Their wireless networking solutions open new revenue opportunities with existing customers. In the near-term, the strongest opportunity will be with home gateway and set-top box customers. Longer term, our vision is the proliferation of wireless technology embedded in entertainment systems."

According to market research firm In-Stat, the total wireless home networking segment is forecast to grow from less than 1 million units in 2000 to 32 million units in 2005, representing a compound annual growth rate of more than 100 percent. In 2004, In-Stat forecasts that home networking unit sales will overtake enterprise sales, and by 2005, will represent close to 60 percent of the total market of 55 million wireless networking units sold.

"The increased global interest in our wireless networking solutions during the past few months reinforces our and Cirrus' belief in the strength of the digital entertainment market. Consumers want to take advantage of this technology that enables them to wirelessly connect the many entertainment devices in their homes to share digital content," said Amar Ghori, co-founder of ShareWave and general manager of Cirrus Logic's new Wireless Networking Division. Mr. Ghori, who reports to Mr. French, and the 80 division employees, will operate from their current location in El Dorado Hills, Calif.

In related news, Cirrus Logic announced on July 19, 2001, a definitive agreement to acquire LuxSonor Semiconductors, Inc., a leading supplier of DVD video processors and audio/video semiconductor solutions, located in Fremont, Calif. This stock-for-stock deal is expected to close in early October. Cirrus also announced on August 9, 2001, a definitive agreement to acquire Stream Machine Company, a leading provider of MPEG2 video recording technology, in another stock-for-stock transaction. Stream Machine is headquartered in Milpitas, Calif. This deal is expected to close in November.

About Cirrus Logic

Cirrus Logic is the premier supplier of high-performance analog and DSP chip solutions for consumer entertainment electronics that allow people to see, hear, connect, and enjoy digital entertainment. Building on its global market share leadership in audio integrated circuits and its rich mixed-signal patent portfolio, the company targets mainstream audio, video and Internet entertainment applications in the consumer entertainment market. Cirrus Logic operates from headquarters in Austin, Texas and major sites located in Fremont and El Dorado Hills, Calif., Broomfield and Boulder, Colorado, as well as offices in Europe, Japan and Asia. More 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 the ability of the Company to successfully integrate ShareWave into its operations and to realize synergies anticipated as a result of this acquisition; overall conditions in the semiconductor market; the rate of consumer electronics market adoption of new products; customer cancellations of orders, or the failure to place orders consistent with forecasts; hardware or software deficiencies; delays in customer qualification of key new products; actual operational spending; and the risk factors listed in the company's Form 10-K for the year ended March 31, 2001, and in other filings with the Securities and Exchange Commission. The foregoing information concerning Cirrus Logic's business outlook represents our outlook as of the date of this news release, and Cirrus Logic undertakes no obligation to update or revise any forward-looking statements, whether as a result of new developments or otherwise.

Cirrus Logic® is a registered trademark of Cirrus Logic, Inc.