FREMONT, Calif. -- July 21, 1999 -- Cirrus Logic Inc. (NASDAQ:CRUS)

today announced financial results for the first quarter of fiscal 2000, which ended June 26, 1999. Net revenues were $120.6 million and, excluding charges related to the restructuring of the joint venture wafer fab agreements with IBM and Lucent Technologies and other charges included in Cost of Sales, net income was $0.5 million and diluted earnings per share were $0.01. Including restructuring and other charges totaling $128.2 million, the company reported a net loss of $127.7 million and a diluted per share loss of $2.12.

"Our first fiscal quarter marks our success in formally reducing joint venture capacity obligations with MiCRUS and Cirent Semiconductor, which supports our re-sized business model of reduced fixed manufacturing costs and operating expenses," said David French, president and chief executive officer of Cirrus Logic. "I believe that virtually all critical actions required to re-engineer Cirrus Logic are now largely behind us, and that our company is well positioned to participate in the next cycle of semiconductor industry growth."

As a result of the agreements to restructure the joint venture wafer fabs, Cirrus Logic has recorded a fiscal Q1 charge of approximately $128.2 million, of which approximately $127.2 million is included in Restructuring Costs, and approximately $1.0 million is included in Cost of Sales. Following are further details related to this restructuring:

The approximate $128.2 million charge taken in fiscal Q1, when added to the $212.2 million in charges taken in prior periods, brings the total charges relating directly to the joint venture restructuring agreements to about $340.2 million.

As a result of the restructuring, Cirrus Logic does not anticipate any further significant charges related to capacity underutilization.

Also related to these restructuring agreements, Cirrus Logic will pay approximately $150 million in cash during fiscal Q2, and to place in escrow Common Stock valued at $32 million in settlement of the agreements.

Cirrus Logic

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.

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 overall conditions in the semiconductor market, customer cancellations of orders, or the failure to place orders consistent with forecasts, unforeseen manufacturing difficulties, or hardware or software deficiencies, or delays in customer qualification of key new products, achieving high utilization of the company's manufacturing resources, final determination of appropriate inventory write-downs based on the outlook at the end of each quarter, actual operational spending, obtaining financing sufficient to meet the company's needs and the risk factors listed in the company's Form 10-K for the year ended March 27, 1999.

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Cirrus Logic news releases may be obtained by fax by dialing 1-800-359-6414, or by dialing 510-249-4200 from outside the United States.

Summary financial data follows: