Silicon Labs 2Q07 update

• The overall revenues for 2Q’07 were around $75 million, of which around 100% came from IC sales. Compared to 1Q’07 there was net increase of 2% in the revenues realized.

• Around 90% of the revenues came from non-US customers.

• There was no customer making 10% of sales.

• Around 30 customers contributed half of the revenues.

• Regarding distribution, direct and channels sales contributed equal amount of revenues for this quarter.

• VoIP side of business continued to experience weakness in this quarter due to some inventory build up in Europe and decline in demand from VoBB related CPE.

• Cellular market has shown strong growth mainly due to new product cycles in the broadcast business. Silicon Labs has broadcasting chips which are mainly for FM in cellular handsets. Since handsets are integrating FM, so the company has seen a boom in their broadcasting chip product line.

• Silicon Laboratories announced a new Dual ProSLIC for voice over IP applications during the quarter. It offers SLIC and codec integrated on one chip which is unique. SLIC chip is Subscriber Line Interface Circuit chip. It has numerous functions like Battery, Overvoltage, Ringing, Signalling, Coding including conversions.