BUSINESS: NORDIC Q2 09 FINANCIAL RESULTS

Results driven by sharp increase in sales of 2.4GHz SoC transceivers to new wireless PC peripherals customers in Asia, an improvement in gross margins from product and customer mix, and a strong focus on cost management. But like almost every other global semiconductor company today, other business segments have been hit hard by downturn

Oslo, Norway - JULY 20, 2009 - Ultra low power (ULP) 2.4GHz RF specialist, Nordic Semiconductor, today announces that despite a severe global downturn in the global semiconductor industry, it achieved its highest ever second quarter operating income¹ (profits) of NOK 20.2m (about US $ 3.2m) on revenues of NOK 87.5m (about US $ 13.7m), and its second highest quarterly order inflows of NOK 118m (about US $ 18.5m).

The company's earnings were driven by a sharp increase in sales to new wireless PC peripherals customers in Asia, an improvement in gross margins from its product and customer mix, and a strong focus on cost management. These gains, however, offset significant declines in other business segments due to the global downturn.

Sales of Nordic's 2.4GHz SoC (system-on-chip) transceivers to the wireless PC peripherals market grew by 80 percent during Q2 09 to NOK 62m (about US $ 9.7m) - and were particularly strong to new lower-end, high volume customers in Asia who are in the process of upgrading their wireless keyboards and mice from older 27 MHz technology to Nordic's latest 2.4GHz SoC solutions. These offer hugely enhanced performance and power advantages, plus eliminate the challenge and risk of integrating components from multiple suppliers.

"The economic downturn has severely impacted the semiconductor industry, with industry associations reporting a decline in global semiconductor revenues of approximately 30% in recent months," comments Svenn-Tore Larsen, Nordic's Chief Executive Officer (CEO). "Nordic has not been immune to this massive decline, and as such we have increased our focus on active, volume growth business segments and carefully managed our operating expenses during this difficult operating period.

"In addition, a huge drawdown in inventories in distribution channels that peaked in Q4 08 for us, appears to now be near complete, and for the last two quarters we have seen a significant pickup in new orders, with industry analysts projecting the start of a recovery in the semiconductor industry during the second half of 2009. That said, customers are still maintaining low inventories and short order cycles, limiting our short-term revenue visibility."

Full details of the company's Q2 09 results can be downloaded direct from the company's website at the Investor Relations pages.

REFERENCES
1. EBIT - Earnings Before Interest and Taxes

About Nordic Semiconductor ASA
Nordic Semiconductor is a fabless semiconductor company specializing in ultra-low power (ULP) short-range wireless communication. Nordic is a public company listed on the Norwegian stock exchange.

Nordic provides RF silicon solutions including:

• Highly integrated RF silicon
• Sophisticated and flexible development tools
• Application specific communication software
• Complete reference designs

The company's innovative range of wireless solutions includes:

• The nRF24LE1^TM single-chip, ultra-low cost and power, fully integrated 2.4GHz transceiver with radio, microprocessor, flash memory and MultiCeiver" technology supporting up to six simultaneous wireless devices;
• The nRF24L01+^TM ultra-low cost and power 2.4GHz transceiver with MultiCeiver technology supporting up to six simultaneous wireless devices;
• The nRF24LU1+^TM single chip 2.4GHz transceiver with full-speed USB, microcontroller and flash memory enabling ultra-compact USB dongles for wireless peripherals;
• The nRF24AP1^TM ultra-low power 2.4GHz transceiver for wireless communication with Dynastream Innovation's production-proven low-power network protocol, ANT^TM;
• The nRF24E1^TM and nRF24E2+^TM low cost transceivers paired with an industry standard 8051 MCU core, and leading peripherals to create the world's first complete low cost SoCs for global 2.4GHz operation;
• The nRF24Z1^TM single-chip system for CD quality audio streaming of up to 16-bit, 48-kHz audio;
• The nRF905+^TM single-chip multiband radio transceiver for the 433, 868 or 915MHz ISM band;
• The nRF9E5^TM low-cost, single-chip system with fully integrated RF transceiver for the 433, 868 or 915MHz ISM band.

Nordic Semiconductor's nRF24xx range of 2.4GHz transceiver and transmitter devices are aimed at applications such as PC peripherals such as wireless keyboards/mice, game controllers, intelligent sports equipment and wireless audio (for example, mp3 and portable CD player headphones and PC speakers). The latest nRF24L01 family, for instance, is targeted at ultra-low cost and power applications such as wireless desktops and intelligent (for example, wristwatch-based) sports equipment.

Nordic is an associate member of the Bluetooth SIG and has contributed core expertise in ultra-low power RF design to the forthcoming specification for Bluetooth low energy wireless technology (formerly ultra low power Bluetooth). Bluetooth low energy wireless technology is a short range RF communication technology featuring ultra-low power consumption, a lightweight protocol stack and simple integration with Bluetooth® wireless technology chips. Bluetooth low energy wireless technology ushers in the next generation of RF communications by opening up many new opportunities for wireless data links between suitably equipped mobile phones or personal computers (PCs) and coin cell battery-powered devices such as sports and health sensors.

Nordic's products are all manufactured in ultra modern semiconductor process technologies through strong relationships with world-best manufacturing facilities. Sales are primarily made through a carefully selected worldwide distribution network. The company has offices in Trondheim and Oslo, Norway, the US (west coast), Hong Kong, Korea and Japan, and is listed on the Norwegian Stock Exchange (OSX: NOD). All operations are managed according to the ISO 9001:2000-approved quality assurance system.
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