Zilog Leads the Secure Transactions Market with New 32-bit High Security Zatara(TM) Series ARM(R) Core Based ASSP

• PCI PED & EMV Compliant, Single-Chip Solution Ushers In Highest Levels of Security, Integration and Performance for Next-Generation Point-of-Sale Systems
• Zatara(TM) System on a Chip ASSP Leapfrogs old Two-Chip Approach on Key Parameters: Security, Performance and Cost
  

SAN JOSE, Calif. -- Sept. 20, 2007-- Zilog, a leading provider of 8-, 16- and 32-bit embedded flash microcontrollers, universal remote control and ARM(R) core based solutions, today unveiled its new 32-bit high-security, high-performance Zatara(TM) single chip solution for the rapidly growing secure transactions marketplace. The launch of the company's first 32-bit family of application specific standard products (ASSPs) follows more than 14 months of collaboration with partners and customers to achieve greater security and performance for next-generation secure transaction applications such as global electronic funds transfer (EFT) point-of-sales (POS) payment systems.

In today's increasingly connected world, EFT technology continues to grow in popularity, and demand for electronic POS payment in retail establishments, restaurants, gas stations and other establishments is accelerating dramatically. With this rise comes an equally rapid escalation of theft and fraud as hackers increase their attempts to compromise credit and debit card security. According to the Wall Street Journal (May 27, 2007), in a single 33-month period, over 87 million credit cards were compromised, representing billions of dollars in stolen merchandise and lost revenue. The need to ensure that these transactions are safe and secure has become critical. Zilog's Zatara(TM) family was built from the ground up to deliver the highest level of security and safety to protect the integrity of EFT POS transactions.

"Addressing the threats to secure transactions is a critical, ongoing process," noted Darin Billerbeck, president and CEO of Zilog. "Instituting stricter standards will help, and the banking industry has achieved this with the new PCI PED certification requirements. Our new Zatara(TM) platform is both PCI PED and EMV level 1 compliant and we've driven the performance and integration of our POS solution to the highest levels in the industry, while delivering on other key industry requirements such as cost, rich POS-specific feature set, and power efficiency."

Customers are embracing the Zatara(TM) ASSP, which is now shipping in volume production. "Hypercom's new PCI PED approved Optimum T4200 countertop platform beats every competitive product on a feature-for-feature basis, and has more capabilities for the price than any other countertop card payment terminals in the industry," said Gregory Boardman, vice president of Countertop Products, Hypercom Corporation. "The platform packs powerful Zatara(TM) ZA9L technology based on an ARM(R) processor core for unrivaled multi-application performance. That critical component, coupled with the highest security, largest memory and broadest feature set of any countertop device of its kind, makes the T4200 a win-win for our customers and retailers worldwide."

Single Chip Solution Leapfrogs Conventional Two-Chip Approach

"The Zatara(TM) device is a fully integrated, system on a chip ASSP that offers four key advantages over the conventional two-chip solutions that use a general processor and a secondary security co-processor," says Michelle Leyden Li, director of product marketing at Zilog. "These include the highest level of security and intrusion protection, lower overall system cost, a simplified design that achieves better performance in a smaller footprint and quicker time-to-market. Our customers get the best of all worlds -- the best security, backed by the best performance, at the best cost."

According to Frost and Sullivan, one of the leading market research firms, the secure transactions market will continue to grow. With EFT POS technology embedded in the life of every consumer, including credit card processors, retailers, hotels, restaurants, taxis, vending machines, banks and Internet commerce, the need for higher levels of security is increasing not only in traditional debit and credit card transactions, but also in other types of secure transactions, such as loyalty/gift cards, contactless card payment solutions, and online debit applications. In addition, growing worldwide acceptance of EFT POS solutions beyond the conventional retail market into vertical markets such as healthcare, government and identity will continue to grow.

Opportunities for New Growth Says Zilog CEO:

"Threats of fraud and security breaches go beyond simply POS financial transactions, but also include other payment devices such as ATMs, unmanned kiosks and vending machines, as well as other mobile and stationary applications," noted Billerbeck. "Moreover, these same threats are extending beyond financial transactions to include confidential personal information associated with the healthcare and government sectors. Zatara(TM) devices are addressing these needs. Our comprehensive technology roadmap for POS and adjacent secure transactions markets is firmly focused on meeting the current and next-generation security, performance and cost challenges across the secured transactions market place."

Zatara(TM) leverages Zilog's expansive partnerships to offer a rich feature set, including:

• Security Subsystem
• Embedded secure boot ROM
• Battery-backed security island
• NIST 800-22 compliant random number generator
• FIPS-140-2 compliant SHA-1 hash generator
• 64 KB embedded zero wait-state SRAM
• 4 KB of embedded secure SRAM with fast zeroization
• Magnetic Card Reader (MCR)
• SmartCard controllers
• Integrated modem
• LCD Monochrome Controller
• 76 General Purpose Input/Output and Pin Muxing (16 dedicated)
• DMA, SDRAM, and interrupt controllers
• Power management features