Norwood, MA (01/12/2006) - Analog Devices, Inc. (NYSE: ADI) announced today that it has signed a definitive agreement with Ikanos Communications, Inc. (NASDAQ: IKAN) to sell its FUSIV network processor and Asymmetrical Digital Subscriber Line (ADSL) application-specific integrated circuit (ASIC) product line. The divesture is in line with ADI’s strategy of focusing its digital signal processing (DSP) investments in areas where ADI’s signal processing expertise can earn superior returns. This product line currently represents approximately 2% of revenue for ADI. The transaction is expected to complete in the first calendar quarter of 2006 and result in the recognition of a small gain on the sale.

“The agreement with Ikanos met our goal of finding a strategic fit for our network processor and ADSL ASIC products to provide ongoing development and support for our customers,” said Brian McAloon, vice president for DSP and Systems Products.

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements, including our statements regarding the sale of our product line described above, and planned revenue, earnings, and operating margins, that are based on our current expectations, beliefs, assumptions, estimates, forecasts, and projections about the industry and markets in which Analog Devices operates. The statements contained in this release are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed in such forward-looking statements, and such statements should not be relied upon as representing Analog Devices' expectations or beliefs as of any date subsequent to the date of this press release. Important factors that may affect future operating results include the effects of adverse changes in overall economic conditions, currency exchange rate fluctuations, the timing and duration of market upturns and downturns, the risk that the transaction described above will not be consummated on the stated timetable, if at all, the growth or contraction of the markets we serve, demand for semiconductors generally and for our products in particular, the risk that our backlog could decline significantly, our ability to hire engineers and other qualified employees needed to meet the expected demands of our customers, reversals or slowdowns in the markets or customers served by our products, the adverse effects of building inventories to meet planned growth that fails to materialize, the occurrence and frequency of inventory and lead-time reduction cycles, raw material availability, availability of both internal and external manufacturing capacity, technological and product development risks, competitors' actions and technological innovations, and other risk factors described in our most recent Form 10-K for the fiscal year ended October 29, 2005, as filed with the Securities and Exchange Commission.

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.

Editor's Contact Information:

Maria Tagliaferro

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