Tundra Semiconductor Updates Guidance for Second Quarter

    OTTAWA, Oct. 23 /CNW Telbec/ - Tundra Semiconductor Corporation
(TSX:TUN), a leader in System Interconnect, today announced revised guidance
for the second quarter of fiscal 2008, which ends October 28, 2007.
    Revenue is expected to be in the range of $17.0 million to $18.0 million
and pro forma diluted earnings per share are expected to be in the range of
$0.00 to $0.04. At the close of the first fiscal 2008 quarter, the Company
provided revenue guidance in the range of $19.0 million to $22.0 million and
pro forma earnings per share guidance in the range of $0.05 to $0.09. The
revised guidance is the result of two factors; softening of the communications
market segment and strengthening of the Canadian dollar.
    Softening of the overall communications infrastructure market is
impacting the demand for all products that serve this market segment.
Specifically, the slowed deployment of new wireless infrastructure is
impacting the ramp of Tundra's new communications products. Demand for the
Company's computing-storage products are in line with expectations for the
    The strengthening of the Canadian dollar also continues to put pressure
on Tundra's quarterly financial results. As the Company's revenue is generated
in US dollars and subsequently reported in Canadian dollars, the USD/CAD
dollar exchange rate has had a progressively negative impact on the Company's
financial results for several quarters.
    "We believe our mid to long term growth strategy is solid and we will
continue to focus on its execution. Presently however, Tundra's revenues are
impacted by the current end market environment. Although short-term visibility
is limited we are confident in our long-term financial growth projections as
our new product lines come to market" said Daniel Hoste, Tundra Semiconductor
President and Chief Executive Officer.
    On Thursday November 29th at 5 pm EST, the Company will provide further
financial detail during its second quarter financial conference call, as well
as guidance for the third quarter.

    About Tundra

    Tundra Semiconductor Corporation (TSX:TUN) supplies the world's leading
communications, computing and storage companies with smart System Interconnect
products and design services backed by world-class customer service and
technical support. Tundra's track record of product leadership includes over a
decade of bridges and switches enabling key industry standards: RapidIO(R),
PCI, PCI-X, PCI Express(R), PowerPC(R), VME, HyperTransport(TM), Interlaken,
and SPI4.2. Tundra's products deliver high functional quality and simplified
board design and layout, with specific focus on system level signal integrity.
Tundra's design services division, Silicon Logic Engineering, Inc., offers
industry-leading ASIC and FPGA design services, semiconductor intellectual
property and product development consulting. Tundra's smart technology
connects critical components in high performance embedded systems around the
world. For more information, please visit www.tundra.com.
    The difference between pro forma and GAAP earnings is due to stock-based
compensation expense, goodwill impairment charges and amortization of
intangibles and backlog associated with Tundra's acquisitions. Tundra uses pro
forma measures internally to evaluate and manage operating performance as well
as to forecast and plan.
    Tundra Semiconductor Corporation is a public company with common shares
listed for trading on the Toronto Stock Exchange (TSX:TUN) in Canada. All
figures, unless otherwise noted, are stated in Canadian dollars in accordance
with accounting principles generally accepted in Canada.

    The Company cautions that the forward-looking information in this release
is based on certain assumptions made by the Company that may prove to be
inaccurate. Assumptions made include, but are not limited to; customer demand
for the Company's products and services, the Company's ability to maintain and
enhance existing customer relationships, and leverage existing partnerships,
as well as the Company's ability to bring to market the products currently
under development.
    Furthermore, the Company cautions that the forward-looking statements in
this release are based on current expectations that are subject to risks and
uncertainties. Actual results may differ due to factors such as customer
demand, customer and partner relationships, new product development, new
services offerings, product shipping schedules, product mix, competitive
products and services, pricing pressure, exchange rate fluctuations, and
changes in the embedded systems market specifically. Additional information
identifying risks and uncertainties is contained in the Company's filings with
the various provincial securities commissions.

    TUNDRA is a registered trademark of Tundra Semiconductor Corporation
(Canada, U.S. and U.K.). TUNDRA and the Tundra logo are registered marks of
Tundra Semiconductor Corporation in Canada, European Union, People's Republic
of China and the United States Design.Connect.Go. is a trademark of Tundra
Semiconductor Corporation. RapidIO is a trademark of the RapidIO Trade
Association, Inc. Other registered and unregistered trademarks are the
property of their respective owners.

    (C) Copyright 2007 Tundra Semiconductor Corporation. All rights reserved.
    Information subject to change without notice.

For further information:

For further information: David Long, Chief Financial Officer, Tundra
Semiconductor Corporation, (613) 592-0859 x1704, david.long@tundra.com; Keri
Zeran, Director Marketing Communications, Tundra Semiconductor Corporation,
(613) 697-6788, keri.zeran@tundra.com

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