CML Microcircuits and SPIRIT DSP form a Strategic Agreement to Produce Low Bit-Rate Vocoder IC's

LONDON -- November 14, 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.

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”.

“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”, said Slava Borilin, VP Products, SPIRIT DSP.”

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

About CML

CML Microcircuits is a member of the CML Microsystems Plc group (LSE: CML.L), specialising in the design, development and marketing of extremely low-power semiconductor products for Global Wireless and Wireline communications applications. Founded in 1968, the company is headquartered near London, UK with strategic locations in the USA, Singapore and China.

About SPIRIT DSP

SPIRIT DSP (www.spiritDSP.com) employs 140 professionals, has been in the international software licensing business since 1992. A bootstrap company, SPIRIT has been profitable for 14 years. For the last 10 years SPIRIT's focus has been communication, speech and VoIP software products. Today SPIRIT counts among its clients Adobe, Agere, ARM, Atmel, Compal, Flextronics, Ericsson, HP, HTC, Kyocera, LG, Marconi, MediaRing, Microsoft, National Semiconductor, NEC, Nortel Networks, Oracle, Paltalk, Panasonic, Philips Semiconductor, Polycom, Radvision, Samsung, Siemens, Texas Instruments, Toshiba and Trinity Convergence, among 200+ other communication OEMs and software vendors. Under these brand names SPIRIT communication software is used in over 80 countries and powers more than 100 million embedded voice channels. SPIRIT DSP is a member of major voice-related developer communities, including Intel(R) Developer Network, ARM(R) Connected Community, Philips Nexperia Partnership, TI Third Party Network, TI OMAP Developer Network for Wireless handsets and PDAs. SeeStorm is SPIRIT affiliate for synthetic video conferencing.