Zarlink Semiconductor Announces Closing of Legerity Acquisition and Exchange of Subscription Receipts for Convertible Debentures



    OTTAWA, Aug. 3 /CNW Telbec/ - Zarlink Semiconductor Inc. (NYSE/TSX:ZL) is
pleased to announce that it has closed its previously announced acquisition of
Legerity Holdings, Inc., a leading developer and supplier of voice ICs
(integrated circuits) for carrier, enterprise and residential gateway
equipment.
    On July 30, 2007, Zarlink closed its offering of Cdn$75,000,000 principal
amount of subscription receipts (the "Subscription Receipts"). As a result of
the closing of the acquisition, the Subscription Receipts will be
automatically exchanged, without payment of additional consideration, for
Cdn$75,000,000 principal amount of convertible unsecured subordinated
debentures (the "Convertible Debentures") on the basis of Cdn$1,000 principal
amount of Convertible Debentures for each Cdn$1,000 principal amount of
Subscription Receipts, effective at 5:00 p.m. (Toronto time) on August 3,
2007. The Convertible Debentures will be issued through the facilities of CDS.
The Subscription Receipts had been trading on the Toronto Stock Exchange under
the symbol "ZL.DB.R" and will be delisted at the close of business on
August 7, 2007 and the Convertible Debentures will trade on the Toronto Stock
Exchange under the symbol "ZL.DB" commencing at the open of business on
August 8, 2007.
    Zarlink will be issuing revised guidance for the second quarter Fiscal
2008 in the coming weeks.
    As the Subscription Receipts were traded, and the Convertible Debentures
will trade, in the book-entry system and no individual certificates have been
or will be issued, holders of the Subscription Receipts need not take any
action in order to receive the Convertible Debentures to which they are
entitled. Customer confirmations with respect to these Convertible Debentures
will be entered through the book-entry system no later than August 8, 2007.
    This news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any offer or sale of the
Convertible Debentures in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
    A copy of the prospectus related to the Offering may be obtained from
CIBC World Markets Inc., 161 Bay Street, Toronto, ON, M5J 2S8, Attention:
Lovena Doodahnand (416) 594-7270.

    About Zarlink Semiconductor

    For over 30 years, Zarlink Semiconductor has delivered semiconductor
solutions that drive the capabilities of voice, enterprise, broadband and
wireless communications. The Company's success is built on its technology
strengths including voice and data networks, optoelectronics and ultra
low-power communications. For more information, visit www.zarlink.com.

    Certain statements in this release, including statements regarding future
results and performance, are forward-looking statements (as such term is
defined under the Private Securities Litigation Reform Act of 1995) based on
current expectations. The accuracy of such statements is subject to a number
of risks, uncertainties and assumptions that may cause actual results to
differ materially from those projected, including, but not limited to, the
effect of general economic conditions, decreases in demand for the Company's
products, increases in raw material costs, fluctuations in selling prices and
adverse changes in general market and industry conditions and other factors
listed in the Company's Securities and Exchange Commission filings.




For further information:

For further information: Media: Ed Goffin, Media Relations, (613)
270-7112, edward.goffin@zarlink.com; Investor relations: Mike McGinn, Investor
Relations, (613) 270-7210, mike.mcginn@zarlink.com

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ZARLINK SEMICONDUCTOR

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