Zarlink Semiconductor Inc. (TSX:ZL) today announced that the Company has established a long-term supply agreement with Medtronic, Inc. covering the supply of ultra low-power radio chips and modules for certain of Medtronic's medical devices that are currently in development. Zarlink has delivered functional prototypes to Medtronic; pending successful performance verification and qualification, Zarlink expects to release fully qualified products to production in the fall of 2011 for exclusive use in certain Medtronic devices.

Wireless medical telemetry technology enables remote communication between the implanted device and programming equipment in a clinician's office or hospital, patient controllers and home monitors. Wireless communication during the implant procedure and during follow-up visits with the physician allows for more convenient patient care and device management.

Medtronic and Zarlink worked jointly to develop and optimize telemetry performance supporting critical communications between Medtronic's implanted medical devices and associated external instruments. The close collaboration has yielded a high performance, ultra low-power telemetry solution exclusively for Medtronic.

"Zarlink's Medical Products Group has established a very high performance level in ultra low-power radio communications for medical devices. Zarlink's proven world-class skills in ultra low-power wireless telemetry technology will provide further advances to raise the bar," said Gary Tanner, President and CEO of Zarlink Semiconductor. "Zarlink is very pleased to have collaborated with Medtronic and we look forward to being a trusted supplier to Medtronic, the world leader in medical devices."

For more information, visit: http://www.zarlink.com/

About Zarlink Semiconductor

Zarlink Semiconductor delivers world-leading, mixed-signal chip technologies for a broad range of communication and medical applications. The Company's core capabilities include timing solutions that manage time-sensitive communication applications over wireless and wired networks, line circuits supporting high-quality voice services over cable and broadband connections, and ultra low-power radios enabling new wireless medical devices and therapies. Serving the world's largest original equipment manufacturers, Zarlink's highly integrated chip solutions help customers simplify design, lower costs and reach market quickly. For more information, visit www.zarlink.com.

Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Canadian Securities Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.

Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such risks, uncertainties and assumptions include, among others, the following: our dependence on the successful development and market introduction of new products; our ability to integrate any business, technologies, product lines or services that we have or will acquire; our dependence on revenue generation from our legacy products in order to fund development of our new products; current market conditions, including the lack of liquidity in the markets and economic slowdown, may increase our operating costs or reduce our revenue, thereby negatively impacting our operating results; our ability to operate profitably and generate positive cash flows in the future; the impact of the current economic crisis on our suppliers and customers and our ability to transfer parts to other suppliers; our dependence on our foundry suppliers and third-party subcontractors; order cancellations and deferrals by our customers; our substantial indebtedness could adversely affect our financial position; the cost and accounting implications of compliance with new accounting standards; and other factors referenced in our Annual Report on Form 20-F. Investors are encouraged to consider the risks detailed in this filing.

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