Zarlink Concerned Shareholders Launch Website Highlighting Need For A New Board of Directors



    Important information for Zarlink Shareholders at www.yourzarlink.com

    OTTAWA, July 10 /CNW/ - The Concerned Shareholders of Zarlink
Semiconductor Inc. today launched a website for their fellow shareholders,
www.yourzarlink.com, that explains why immediate change is required at Zarlink
and outlines the Concerned Shareholders' plan for rebuilding value at the
Company.
    "The current Board is attempting to distract shareholders from Zarlink's
disastrous performance during the lost years under Kirk Mandy, the current
CEO, and his Board of Directors," said Scott Leckie, one of the Concerned
Shareholders who, together, control more than 5.9% of Zarlink's through
investments dating back more than three years. "The website is another
resource that our fellow shareholders can use to get the facts about their
Company and how they can vote their BLUE proxy to implement a plan for
positive change."
    Mr. Leckie said: "Zarlink belongs to the shareholders, not the current
Board and certainly not Kirk Mandy. Shareholders have the power to change the
Board and we urge them to use it by voting the BLUE proxy before the Annual
and Special Meeting on July 23. After a decline in share value of more than
95% since 2002, Zarlink shareholders have suffered enough."
    www.yourzarlink.com reminds Zarlink shareholders of the need for
immediate change at their Company:

    
    A weak and deteriorating share price:

    -   A decline of more than 60% since Kirk Mandy returned as CEO in
        February 2005.
    -   Significantly underperforming both Zarlink's direct peer group and
        other companies in the semiconductor industry.

    Poor financial performance:

    -   Almost $500 million in cumulative net losses from continuing
        operations since 1999.
    -   More than $300 million in lost shareholders' equity in the past eight
        years.
    -   Net cash has decreased from positive cash balances of more than
        $150 million to a current deficit of $17.5 million.
    -   Overhead and R&D costs are more than twice as high as industry
        norms - and rising.

    Poor acquisition track record:

    -   Over $600 million spent on acquisitions since 1996 have led to almost
        $500 million in losses since Kirk Mandy first became CEO in 1998.
    -   Rather than building Zarlink, acquisitions have left it smaller and
        weaker.

    Unfocused and weak product portfolio:

    -   Zarlink has no leading products in any of the three competitive
        segments it serves.
    -   Product misalignment has led to declining organic revenue for seven
        years in a row.

    Poor relationship with investors:

    -   Lack of transparency in financial reporting.
    -   Lack of responsiveness to, and communication with, shareholders.
    

    (All dollar amounts are in U.S. currency, which Zarlink uses for
financial reporting.)
    Details of the Concerned Shareholders' plan for enhanced value are
provided at www.yourzarlink.com.
    The Concerned Shareholders are Scott Leckie, who manages funds owning the
second-largest holding in the Company, as well as David Banks and Daniel Owen.

    Voting for Change

    The Concerned Shareholders remind their fellow Zarlink shareholders:
    Your vote is very important to the future of your investment in Zarlink.
If, after reading the Concerned Shareholder Proxy Circular, you agree that the
Concerned Shareholder Nominees, together with the three management nominees,
will better serve your interests as a shareholder of Zarlink, please vote
"FOR" the Concerned Shareholder Nominees on the BLUE form of proxy distributed
with the Concerned Shareholder Proxy Circular.
    You may vote the BLUE proxy for change even if you have previously
deposited a management proxy or other proxy. A timely delivered and
later-dated BLUE proxy automatically revokes any earlier one.
    There is only a short time in which to make the needed change at Zarlink.

    
    -   In order to be deposited with Zarlink's registrar and transfer agent
        in time to be used at the meeting, your BLUE proxy should reach
        Kingsdale Shareholder Services Inc. before 5:00 p.m. (Eastern Time)
        on Friday, July 18, 2008.
    -   Please fax only your BLUE proxy to 416-867-2271 or toll free: 1-866-
        545-5580. Hand delivered proxies should be returned to Kingsdale at
        the Exchange Tower, 130 King Street West, Suite 2950, P.O. Box 361,
        Toronto, Ontario, M5X 1E2.
    -   Non-registered shareholders are advised to refer to the information
        under "General Proxy Information - Non-Registered Shareholders" in
        the Concerned Shareholder Proxy Circular.
    





For further information:

For further information: Scott Leckie, (416) 363-3399

Organization Profile

CONCERNED SHAREHOLDERS OF ZARLINK SEMICONDUCTOR INC.

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