ANALOG DEVICES ADDS EXCITEMENT TO TODAY’S BEST SELLING DIGITAL CONSUMER ELECTRONICS PRODUCTS

In the home, hand and car, ADI’s signal processing know-how is behind the outstanding audio and video image quality, realistic game play and new levels of mobility in an assortment of consumer goods.

Norwood, MA (01/04/2007) - Analog Devices, Inc. (NYSE: ADI) is enabling some of the year’s most exciting consumer electronics products by lending its advanced signal processing expertise to the newest generation of game boxes, educational toys, high-definition TVs (HDTVs) and audio/video (A/V) equipment, cell phones and automotive systems. The world’s leading consumer electronics manufacturers are tapping ADI technology to quickly and accurately translate digital information into true-to-life sound, images and motion that are redefining the way consumers engage with a new breed of electronic goods, including popular items like digital cameras, the Nintendo Wii™ gaming console and the world’s first HD-DVD players, as well as emerging applications, such as mobile TV. With a host of new features coming available, consumer electronics are expected to account for 25 percent of all holiday purchases in 2006, according to the Consumer Electronics Association (CEA), with seasonal sales totals estimated to reach $21 billion.

“A prime mover behind the increasing consumer appetite for electronic entertainment is our customers’ ability to bridge the ‘expectation gap’ between what we see, hear and touch in our everyday lives, and the ability of multimedia content to faithfully reproduce those experiences,” said Jerald G. Fishman, president and CEO, Analog Devices. “Our signal processing strengths are perfectly aligned to close this gap, which is why ADI’s sales to consumer electronics customers have averaged more than 25 percent growth per year over the past four years – well exceeding semiconductor industry growth rates.”

Motion Sensing Rejuvenates Electronic Games
Analog Devices is applying its Motion Signal Processing™ technology to a range of consumer devices, including the Nintendo Wii game console, where ADI’s motion sensors are helping to reinvigorate the interactive gaming experience. Using ADI’s motion-sensing 3-axis MEMS accelerometers, the freestyle Wii Remote handheld controller allows gamers to run, jump, spin, swing, slide and steer using their own body’s movement to control their actions in the game in real time. The result is incredibly realistic game play that has helped make the Wii console one of the holiday season’s most sought-after items and is expanding the appeal of electronic gaming among non-traditional users. Analog Devices’ Motion Signal Processing technology is also helping star gazers observe the galaxy by providing motion sensing in the Celestron® SkyScout™ personal planetarium. By registering tilt measurement to determine the exact position of the user, the portable SkyScout can instantly recognize more than 6,000 celestial objects viewable to the naked eye. Named the “Best of Innovations” in the personal electronics category by the CEA in 2006, the SkyScout uses a large celestial database to provide scientific information on each object via text or audio.

Engineering the HD Experience
The sophistication of today’s “digital” living room is similarly dependent on robust signal processing technology, which is allowing consumers to enjoy movies and music with image and audio quality that even the most advanced Hollywood theaters were unable to deliver just a decade ago. The trend toward digital TV, high-definition content and sleek, ergonomic home theater systems is made possible by Analog Devices’ advanced signal processing solutions. That’s why Toshiba Corp. tapped ADI’s audio expertise for the industry’s first HD-DVD player and turned to ADI for video encoding technology in the world’s first HD-DVR (digital video recorder). The ability of consumer electronics manufacturers to display life-like images in stunning 1080p HD resolution is likewise driven by analog and mixed-signal technology that converts, conditions and regulates video signals in today’s flat-panel plasma and LCD TVs. ADI’s investments in High-Definition Multimedia Interface™ (HDMI™) technology have produced the industry’s broadest portfolio of HDMI integrated circuits, including support for HDMI v1.3 and wireless HDMI. ADI’s comprehensive product portfolio and understanding of system-level design and connectivity requirements combine to offer users a rich multimedia experience that puts the “reality” in reality TV.

Photos and TV in the Palm of Your Hand
Mobile communications platforms are leveraging the power efficiency and bandwidth of advanced signal processing techniques to infuse a new generation of cell phones, PDAs and portable media players with an ever greater range of multimedia features. Analog Devices is providing solutions to leading digital still camera and cell phone makers, for example, that enable cameras with brighter flash and features such as optical zoom and image stabilization. Additionally, Analog Devices is working with industry leaders to bring broadband wireless broadcasting services to cell phones. ADI’s Integrant Technologies has already introduced mobile TV to mainstream consumer markets in Japan and Korea in cell phones from the likes of LG and Samsung, and developed the first solution to support China’s emerging mobile TV standard for wireless handsets.

Intelligent Batteries Power Today’s Automotive Electronics
The electronics in today’s automobiles can account for as much as 25 percent of a vehicle’s total cost, with sales of consumer-related in-vehicle automotive technologies expected to reach $8.5 billion in 2006, according to the CEA. Yet demand for new features that increase comfort, safety and reliability are taxing today’s car batteries, which must manage an increasingly sophisticated electronics network in addition to handling critical functions, such as engine start-up. Research from one automotive industry group attributes up to 60 percent of all vehicle electronics failures to faulty or discharged batteries. Analog Devices addressed the issue by integrating analog, microcontroller, memory and networking technology to create an intelligent battery management solution that is helping auto manufacturers like BMW maintain vehicle dependability while still meeting consumer demand for new electronics features.

About Analog Devices
Innovation, performance, and excellence are the cultural pillars on which Analog Devices has built one of the longest standing, highest growth companies within the technology sector. Acknowledged industry-wide as the world leader in data conversion and signal conditioning technology, Analog Devices serves over 60,000 customers, representing virtually all types of electronic equipment. Celebrating 40 years as a leading global manufacturer of high-performance integrated circuits used in analog and digital signal processing applications, Analog Devices is headquartered in Norwood, Massachusetts, with design and manufacturing facilities throughout the world. Analog Devices' common stock is listed on the New York Stock Exchange under the ticker “ADI” and is included in the S&P 500 Index.

Motion Signal Processing is a trademark of Analog Devices. All other trademarks are the property of their respective owners.

Editor's Contact Information:

Maria Tagliaferro
781-461-3282
781-461-3491
investor.relations@analog.com

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