Harman/Becker and SMSC Open MOST(R) Data Link Layer for Existing and Future Generations

SMSC (Nasdaq: SMSC) announced today that SMSC and Harman/Becker Automotive Systems have committed to open and license, on a royalty-bearing basis, their proprietary Data Link Layer intellectual property for existing and future generations of the Media Oriented Systems Transport (MOST®) multimedia network. By making available their key technologies for the lower layers of MOST, semiconductor companies will be provided an opportunity to manufacture and supply chips that incorporate an interoperable MOST interface. MOST is an open standard for multimedia network communication for automobiles and other applications that has been developed by and within the MOST Cooperation, a consortium of key automotive companies and suppliers. As is typical for standards-based technologies, there is complementary technology and intellectual property that is important in implementing standards-based products but is not part of the standard itself. The Data Link Layer developed by Harman/Becker and SMSC is one example as it is not part of the MOST standard. To date, SMSC and Harman have not made the details of their proprietary Data Link Layer public and it is not part of the MOST Cooperation specifications. "Given the growth in the market for MOST-based products, both Harman/Becker and SMSC now believe that this is an opportune time to make our proprietary technology available to encourage competition and assist in the growth of the MOST marketplace,” said Helmut Schinagel, CEO of Harman/Becker Automotive Systems. Harman/Becker and SMSC intend to make their technology available in a step-wise process linked to market growth for existing and future generations of MOST: As a particular generation of the MOST technology (e.g. MOST25, MOST50, or future faster generations) matures to a total market size of 10 million nodes sold, SMSC intends to offer a royalty-bearing license to its design implementation of the MOST Data Link Layer to other semiconductor companies. This license will enable other companies to implement SMSC’s design of a MOST interface on their own chips subject to the limits of the semiconductor processing. SMSC will assist licensees on a fee basis to help to ensure interoperability with SMSC’s existing implementations. When the market for a particular implementation of the MOST technology has reached a size of 50 million nodes sold, Harman/Becker and SMSC intend to publish the details of the Data Link Layer of the respective generation of MOST to other members of MOST Cooperation and license the use of SMSC’s and Harman/Becker’s respective patents to other members of MOST Cooperation allowing them to provide their own design implementations of an interoperable data link layer for MOST based products. Licenses to the MOST Link Layer patent intellectual property will be available on a royalty-bearing basis similar to other comparable networking technologies, such as the Controller Area Network (CAN). The precise details of the licensing arrangements offered by Harman/Becker and SMSC will be reflected in respective licensing agreements to be executed by interested parties. "As the first generation of MOST is approaching a market size of 50 million nodes sold, SMSC has developed a detailed specification of its Data Link Layer. Members of the MOST Cooperation may request copies of the specification and the license agreement via SMSC’s web site,” said Christian Thiel, General Manager of SMSC’s automotive product line. "With this opening step, we are demonstrating our commitment to making our technology available competitively in line with growing market size. We expect this to accelerate the success of MOST.” About MOST Technology: MOST multimedia technology enables the networking of feature-rich infotainment systems in automobiles by providing the means to distribute multimedia entertainment functions among the various control devices around the car. For example, a CD changer, radio, global positioning system, mobile telephone and DVD player can be established in an efficient ring network and can send crisp, static-free audio signals digitally to the amplifier by utilizing the MOST network. About the MOST Cooperation: The MOST Cooperation was founded in 1998 by BMW, DaimlerChrysler, Harman/Becker and OASIS SiliconSystems (acquired by SMSC in March 2005) to establish and refine MOST as a common standard for today's and tomorrow's needs of automotive multimedia networks. Today, the Cooperation includes 15 international carmakers and more than 70 key component suppliers all working with MOST Technology and contributing towards its innovation. For more information see www.mostcooperation.com. About Harman/Becker Automotive Systems: Harman/Becker Automotive Systems is the automotive division of Harman International, Inc. Harman/Becker provides leading-edge entertainment, information and communication systems for the automotive industry and the aftermarket. Harman International Industries, Incorporated (www.harman.com) is a leading manufacturer of high-quality, high-fidelity audio products and electronic systems for the consumer and professional markets. The company’s stock is traded on the New York Stock Exchange under the symbol "HAR.” Harman/Becker and Harman International are trademarks of Harman International Industries, Incorporated, registered in the United States and/or other countries. About SMSC: Many of the world’s most successful global technology companies rely upon SMSC as a go-to resource for semiconductor system solutions that span analog, digital and mixed-signal technologies. Leveraging substantial intellectual property, integration expertise and a comprehensive global infrastructure, SMSC solves design challenges and delivers performance, space, cost and time-to-market advantages to its customers. SMSC’s application focus targets key vertical markets including consumer electronics, automotive infotainment, PC and industrial applications. The Company has developed leadership positions in its select markets by providing application specific solutions such as mixed-signal embedded controllers, non-PCI Ethernet, ARCNET, MOST and Hi-Speed USB. SMSC is headquartered in Hauppauge, New York with operations in North America, Asia and Europe. Engineering design centers are located in Arizona, New York, Texas and Karlsruhe, Germany. Additional information is available at www.smsc.com. SMSC and MOST are registered trademarks of Standard Microsystems Corporation.