OTTAWA -- Zarlink Semiconductor (NYSE/TSX:ZL) today announced the purchase of the optical I/O (in/out) business of Primarion, Inc., a supplier of digital power conversion ICs (integrated circuits) for US$7 million in cash. The purchase includes Primarion's optical I/O assets and intellectual property. Zarlink intends to retain all 10 former Primarion I/O group employees. This acquisition is expected to generate approximately US$3 million in revenue in Fiscal 2007 and is not expected to have a material impact on ongoing current year earnings.

Primarion's I/O business, based in Phoenix, Arizona, is the technology and market leader for laser driver and optical receiver ICs used in multi- lane, parallel fiber optic modules. Several global customers have designed Primarion's physical layer I/O solutions into optical modules used in enterprise data centers for interconnect applications such as Ethernet, fiber channel and proprietary VSR (very short reach) optical links. Primarion's I/O solutions include laser drivers, transimpedence and post amplifier circuits, supporting wireline speeds of 1 Gb/s to 10 Gb/s.

"There are exciting growth prospects for parallel optics in emerging markets such as high-performance computer interconnect, industrial automation and military applications, as well as telecom," said Dr. Stan Swirhun, senior vice president and general manager, Zarlink Optical Products Group. "We will provide superior support, and a high-quality, stable source of supply to Primarion customers. We will also introduce innovative optical solutions that combine Zarlink technology with Primarion optical ICs."

Zarlink Semiconductor Inc. (NYSE/Toronto: ZL)