SMS Business Momentum Adds to eSilicon's Revenue Growth

SUNNYVALE, CA -- (MARKET WIRE) -- Mar 09, 2011 -- eSilicon Corporation, the largest independent semiconductor Value Chain Producer (VCP), today announced that Ozmo Inc., a leading provider of low-power Wi-Fi PAN products, will produce its chips through eSilicon's Semiconductor Manufacturing Services (SMS) business unit. SMS delivers a turnkey service for products already in the manufacturing phase by ramping up in volume and managing the products through their entire lifecycle. The turnkey service includes quality and product cost management, capacity and delivery scheduling and supply chain management.

Launched in 2010, eSilicon's SMS business unit provides high-value manufacturing services through a combination of a broad base of proven supply chain partners, an enterprise-wide infrastructure for resource planning and the eSilicon Access® work-in-process (WIP) tracking solution with automated schedule impact analysis. Through SMS, customers can divest themselves of internal, backend engineering and supply chain management activities and focus on market differentiation activities.

"We addressed Ozmo's need for a proven, high-value, cost-effective manufacturing services partner. Our systems, processes, operations experts and amortized cost model provide for world-class operations capability while delivering enhanced customer satisfaction. By utilizing SMS turnkey services, Ozmo can focus on product development and customer service while creating a flexible manufacturing system that can easily adjust according to product cycles," said Lawrence Conrad, vice president and general manager of the SMS business unit. "Since forming the business unit last year, eSilicon has signed up seven customers and expects significant SMS revenue growth for fiscal year 2011."

"In order to maintain our fast growth and enviable market edge, while simultaneously ramping to meet customer demands, we are offloading our silicon manufacturing operations to eSilicon," said Bill McLean, CEO of Ozmo Inc. "We believe eSilicon can provide us with the high quality manufacturing services that will allow us to easily ramp to meet any production levels."

About Value Chain Producers
A Value Chain Producer (VCP) is a company that collaborates with foundries, IP and service providers, EDA suppliers, package, assembly and test operations in designing and producing chips for fabless IC, IDM and OEM companies. VCPs optimize the economics of customer value chains and enable customers to focus on their product differentiation and market growth. A VCP earns revenue by shipping packaged, tested products with the customer's logo. The term was created by eSilicon and was adopted by the Global Semiconductor Alliance (GSA) as a new category in October 2009.

About eSilicon
eSilicon, the largest independent semiconductor Value Chain Producer (VCP), delivers ASICs to OEM and fabless semiconductor companies through a flexible, lower-risk path to volume production by deploying its comprehensive suite of design through manufacturing services.

The company's customers include system original equipment manufacturers (OEMs) and fabless semiconductor companies who serve a wide variety of markets including the consumer, computer, communications and industrial segments. eSilicon -- Enabling Your Silicon Success™. For more information, please visit www.esilicon.com.

About Ozmo Devices
Ozmo Devices is the leading provider of low-power Wi-Fi PAN solutions. Ozmo Devices extends the functionality of Wi-Fi-enabled platforms to seamlessly communicate with peripherals. Ozmo Devices' silicon solution delivers superior performance for low-power wireless peripherals like mice and headsets. Ozmo Devices is backed by top-tier venture capital firms and managed by semiconductor industry veterans. The company is headquartered in Palo Alto, California, and has offices in the United Kingdom. For more information about Ozmo Devices, visit www.ozmodevices.com.

eSilicon and eSilicon Access are registered trademarks, and the eSilicon logo and Enabling Your Silicon Success, are trademarks of eSilicon Corporation. Other trademarks are the property of their respective owners.

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For more information:
Susan Cain
Cain Communications
503-538-2747

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Sally Slemons
eSilicon Corporation 
408-616-4695

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