ANALOG DEVICES’ TECHNOLOGY DRIVES INNOVATION BEHIND TODAY’S MOST POPULAR CONSUMER ELECTRONICS PRODUCTS

Digital, mobile lifestyle trend fuels demand for high-performance signal processing in digital television and home entertainment, portable media systems and digital cameras.

Norwood, MA (01/12/2006) - Analog Devices, Inc. (NYSE: ADI) is making sure the season’s “coolest” consumer electronics products – from the world’s largest flat panel TVs to the handiest portable media players – deliver the superior audio, video and image quality that discriminating consumers have come to expect anywhere, at anytime. By shaping the sights, sounds and experiences we increasingly encounter through digital media, ADI’s analog and digital signal processing technology is enabling everything from the most popular TVs and cameras on store shelves today to home entertainment and car infotainment centers featured at events like last week’s Consumer Electronics Show in Las Vegas. Sales of consumer electronics goods are projected to reach a record high of more than $135 billion in 2006, according to the Consumer Electronics Association, an 8 percent increase over 2005. With a proven ability to render true-to-life sound and images, Analog Devices is outpacing this growth trend, with sales into the consumer electronics marketplace climbing an average of 20 percent per year between fiscal 2003 and 2005.

The catalyst for this growth trend is global consumer demand for rich, easily accessible content available through a variety of audio, video and communications devices, including digital displays, high-definition TV (HDTV) and home entertainment centers, portable media players, cell phones and digital cameras. In each case, the quality of the end user experience is determined by how faithfully the analog content, or signal, is captured, processed digitally and reproduced as something we can see or hear.

“Signal processing is, quite literally, everywhere and behind the most in-demand features in virtually every electronics application,” said Jerald G. Fishman, Analog Devices’ president and CEO. “Consumers today expect more audio channels and sharper images in their LCD and plasma TVs, set-top boxes that distribute data to the TV, PC and home audio equipment, and digital cameras with higher image resolution, longer battery life and more user-friendly features. These devices come alive through high-performance analog and mixed-signal solutions from ADI. Analog is everywhere, translating the power and efficiency of digital technology into real-world experiences.”

Through its innovative signal processing solutions, Analog Devices is enabling a range of consumer applications, including:

Digital TVs: Even in the era of digital broadcasting and HD programming, most of the televised content coming into the home uses analog signals, while VCRs and DVD players require analog interfaces to send video and audio signals out to the TV. Despite the existence of many audio and video formats, ADI’s technology and systems-level expertise enable TVs that go beyond simply supporting all legacy audio and video transmission standards, ADI’s technology makes the content look and sound good and delivers higher-resolution images, multi-channel sound, and features like Internet access, picture-in-picture and video recording. In fact, Analog Devices is the only company able to provide all requisite components for video, audio and display inputs and outputs, including video decoders and encoders, digital I/O and display electronics and audio amplifiers and processors. By providing more than a dozen components in the audio and video signal chain, ADI can be found in the most advanced LCD and plasma TVs manufactured by industry leaders like Panasonic, Samsung, Sharp and Sony.

Home Entertainment Centers: If you’ve ever turned up the volume to hear the dialogue in a scene, then dove for the remote to turn down the blare when the action began, you’ve experienced the kind of problem ADI technology is solving in home theater equipment. ADI’s Blackfin®, SHARC® and SigmaDSP® processors are synonymous with sound quality, sound effects and studio-quality audio and video performance. This includes the Networked Audio/Video Center by Yamaha Corp., which uses ADI’s Blackfin® processor to power a central device for playing back, storing, and distributing digital music, video, and photos to any room in the house. ADI’s range of processing solutions meets all price and performance points, from high-end entertainment centers equipped with multiple audio/video components to more streamlined “home theater in a box” systems.

Portable Media Players: Analog Devices is enabling the rapid convergence of voice, video and data by allowing designers to add digital photo processing, MP3 music, broadcast TV and other features to next-generation cellular handsets, portable media players and handheld digital audio devices. ADI’s signal processing expertise ensures today’s multi-functional mobile devices are compatible with all prevailing multimedia standards, while managing system power requirements to accommodate new audio, video, image and voice capabilities without compromising battery life. Portable media players powered by the Blackfin® processor, for example, play up to eight hours of MPEG-4 or Motion JPEG (MJPEG) video and up to 16 hours of MP3 music, while at the same time running the media players’ operating system and application set.

Digital Cameras: Consumers have a wide range of excellent digital cameras to choose from, and they’ll find ADI technology inside the majority of digital cameras available today. The picture quality of digital cameras has steadily improved to the point where they now rival conventional 35mm-film cameras. Analog Devices enabled this evolution with its advanced analog-to-digital conversion technology, which provides the power to rapidly capture high-resolution pictures while ensuring the image you print out or store on your camera is crisp and lifelike. That’s why ADI technology was chosen for digital still cameras like the 6-megapixel Lumix DMC-LZ5 and 5-megapixel DMC-LZ3 cameras from Panasonic. ADI’s signal processing technology is even allowing digital cameras to do things the highest quality 35-mm cameras cannot, including motion compensation and built-in stability control to remove the blur from shaky photos. In the digital video arena, ADI’s ability to accurately and cost effectively deliver superior video images is putting high-definition camcorders like the Canon HDV XL H1 into the hands of consumers, for the first time enabling HD video cameras to penetrate the mainstream market.

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.

Blackfin, SHARC and SigmaDSP are registered trademarks of Analog Devices.

Editor's Contact Information:

Krys Monaco
781/937-1945
781/937-1026
krys.monaco@analog.com

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