Dialog Semiconductor Strengthens R&D with Major New Design Centre in Edinburgh

Kirchheim/Teck, Deutschland, February 28 2007 – Dialog Semiconductor Plc (FWB: DLG) has announced it has started recruiting for a major new research and design (R&D) centre in Edinburgh, Scotland. The new R&D centre is part of the company’s response to growing interest in its leading edge battery power management and HiFi audio products for next generation handheld electronics products running multiple consumer applications.

Dialog Semiconductor’s CEO Jalal Bagherli commented, 'We are seeing a tremendous growth in the market for smarter phones, and convergence of multiple applications such as multimedia features, navigation, TV and games, all on a single handheld device. The greatest challenge for handheld consumer electronics manufacturers continues to be how to keep their customers happy with gadgets incorporating all these applications that don’t need re-charging every few hours – and this is why these manufacturers are increasingly showing interest in our sophisticated and patented battery, power management and HiFi technology.'

He added; 'Our new design centre will therefore be an essential part of our growth strategy: to recruit highly skilled design teams that will pave the way for developing even smarter system-on-chip (SoC) integrated circuits that can meet the need of tomorrow’s convergent devices. Our current business outlook anticipates a requirement to recruit over 50 engineers over the next three to four years in various disciplines ranging from analog and mixed signal circuit design to system-on-chip expertise, and set up R&D programmes that can take advantage of some of the excellent knowledge available at local universities.'

Dialog Semiconductor’s vice-president of engineering, Gary Duncan, added; 'When we decided to set up a substantial design centre for our mixed signal design activity, we had many choices and carried out an extensive search around the world. We finally selected Edinburgh because of the combination of design skills, innovation culture and universities with relevant research programmes that exist there. These ingredients are vital to ensure that we stay both at the leading edge of technology but also create products that bring us commercial success.'

The Chief Executive of Scottish Development International, Martin Togneri, said; 'We are delighted that a global technology company like Dialog Semiconductor has chosen to locate in the heart of Edinburgh. We are sure that the company’s standing as a supplier of components to some of the world’s leading consumer electronics companies plus the opportunity for local engineers to make a mark in advanced semiconductor technologies will allow the company to attract the highest calibre of technologists and design staff for its new facility.'

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Contact Birgit Hummel, Dialog Semiconductor Tel: +49-7021-805-412 Fax: +49-7021-805-200 Email: enquiry@diasemi.com

Stephen Sharp, Scottish Enterprise Tel: +44 (0) 141 228 7364 Mobile: +44 (0) 7786 126 629 Email: stephen.sharp@scotent.co.uk

Notes to editors

About Dialog Semiconductor

Dialog Semiconductor develops and supplies power management, audio and display driver technology, targeting the wireless, automotive and industrial markets. The company’s expertise in mixed signal design, with products manufactured entirely in CMOS technology, enhances the performance and features of wireless, hand-held and portable electronic products.

Its technology is also used in intelligent control circuits in automotive and industrial applications.

Dialog Semiconductor Plc is headquartered near Stuttgart, Germany with operating facilities in the UK, US, Austria, Japan and Taiwan. The company is listed on the Frankfurt (FWB: DLG) stock exchange.

About Scottish Development International

Scottish Development International works to attract inward investment and knowledge to Scotland in order to help the economy grow. SDI also works to help Scottish companies do more business overseas and to promote Scotland as a good place to live, work and do business. It is jointly operated by the Scottish Executive and Scottish Enterprise. Its work is guided by the global connections theme of the Scottish Executive's Smart Successful Scotland strategy for economic development in Scotland. www.sdi.co.uk