CML Microcircuits and SPIRIT DSP Form Strategic Agreement

LONDON — November, 2006 —CML Microcircuits (www.cmlmicro.com) a leading innovator and provider of low-power semiconductors for Global Wireless and Wireline communication markets, today announced a strategic agreement with SPIRIT DSP (www.SPIRITDSP.com), a technology innovator and the world's leading provider of embedded voice, audio and communication software products, to produce low bit-rate RALCWI Vocoder ICs

Under the terms of the agreement, CML will provide integrated circuits (IC’s) to the worldwide communication markets based upon SPIRIT’s proprietary Low Bit-Rate Vocoder technology. The agreement combines CML’s 38-year history of developing mixed-signal semiconductors for professional and leisure wireless applications with SPIRIT’s 10 years of experience in embedded voice products. Initial semiconductor products will be aimed at applications within the global Two-Way Radio market.

“This agreement with SPIRIT achieves our objective of providing communication product designers with a single, highly integrated IC for their low bit-rate voice processing requirements,” said Malcolm Lyman, Marketing Manager CML Microcircuits (UK) Ltd. “Historically within our target markets, equipment designers have had very little choice in terms of standard IC products for high-quality, low bit-rate Vocoding applications and have had to pay high initial licence fees and ongoing royalties to use available technology. Our agreement with SPIRIT and the resulting IC products will bring highly integrated, cost-effective IC’s to the market that are both licence and royalty-free”.

Slava Borilin, VP Products, at SPIRIT DSP commented; “We are proud to partner with CML to integrate our leading edge Vocoder technology within CML’s mixed-signal IC’s. SPIRIT’s position as the world’s leading provider of voice-processing technology and CML’s extensive experience in the global Two-Way Radio markets provide a very powerful solution for equipment designers across the world”.

CML is now providing limited sampling of the new CMX618, with full production expected at the end of Q1 2007.

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