Campbell, CA (December 13, 1999) -- ZiLOG Inc.^® (formerly ZLG on the NYSE) today announced the acquisition of Production Languages Corporation (PLC), a Fort Worth, Texas company that has developed a technology for designing high-performance microprocessors and co-generating their associated development tools.

"PLC’s Soft Core Co-Generation design technology dramatically enhances ZiLOG’s capability to create next-generation processors and software tool packages for customers," said Curtis J. Crawford, Chairman, President and CEO of ZiLOG Inc. "The PLC acquisition is also a cornerstone of ZiLOG’s strategy to develop a full line of product solutions that are based on soft cores."

David C. Fritz founded PLC in 1986. As part of the purchase agreement, Fritz will join ZiLOG as Vice President of Research and Development for Core Processors within the Communications Group. Fritz will lead a new design team in the Dallas-Fort Worth area to develop advanced soft cores for future ZiLOG products.

"ZiLOG is clearly positioned to become a rising star of the semiconductor industry," Fritz said. "Under the leadership of CEO Curtis J. Crawford, the company has demonstrated a new focus, new energy, new technologies and new products. I am proud to join Crawford’s team."

Under Fritz’ leadership, PLC developed the SD/ToolSmith™ technology for developing new processors. As a result of this patented technology, PLC became the only supplier of completely customizable and configurable soft cores and tool sets that are generated simultaneously from a single description written in a proprietary language. The proprietary language, now owned by ZiLOG, is called THISL^® (Temporal Hierarchical Instruction Set Language).

By fully integrating PLC’s technology into ZiLOG’s design process, ZiLOG will be able to develop new processor soft cores and software development tools in a fraction of the time and at a fraction of the cost of more conventional design methods.

"Using technology that automates the design-and-tools process also enables ZiLOG to compete in emerging markets, such as network processors, where product development cycles are being compressed from years to months as customers demand higher performance and speed-to-market," said Didier Le Lannic, Senior Vice President and General Manager of ZiLOG’s Communications Business Unit. "PLC’s experience and technology will play a key role in shaping ZiLOG’s future products."

The PLC acquisition caps a year of aggressive activity for ZiLOG. In addition to posting consecutive quarterly sales increases, ZiLOG in 1999 has introduced several major product families, including the Cartezian Communications Engine™, the eZ80 Internet Engine™, M@ilTV™ and the WAVE™ chip family of wireless spread spectrum voice and data controllers. The company also established new design centers in Seattle, Wash. and Bangalore, India, to complement existing design teams in Nampa, Idaho, Austin, Texas, and Campbell, Calif. The company also opened a worldwide customer service center in Austin and restructured its global sales force to meet customer needs.

ZiLOG is a leading global design solutions company specializing in embedded and integrated circuits for the communications, home entertainment and integrated controls markets. Headquartered in Campbell, Calif., ZiLOG employs an estimated 1,300 people worldwide. It announced 1998 revenues of $204.7 million. Texas Pacific Group and its affiliates, a $2.5 billion private investment partnership, own a majority interest in ZiLOG. ZiLOG maintains design centers in Campbell, Calif., Austin and Fort Worth, Texas, Nampa, Idaho, Seattle, Wash., and Bangalore, India, a worldwide customer service center in Austin, advanced manufacturing in Nampa and test operations in Manila, Philippines. It has 27 direct sales offices and more than 120 distributor locations worldwide. www.zilog.com