One of the important conditions for the consent of both Supervisory Boards was the concluding of negotiations with the Porsche bank consortium, for the repayment of the existing jumbo loan. In this case, the existing Porsche SE credit line of 10.75 billion euro is replaced by a new credit line, which reaches a total volume of up to 8.5 billion euro. This sum is distributed across three tranches with terms of between two and three years, and it substantially reduces the interest burden of Porsche. All banks involved in the old credit lines are without exception also involved in the new ones, with unchanged rates. (C) 2009 Al Bawaba (www.albawaba.com)

The starting point in developing the 911 GT3 R weighing just 1,200 kg or 2,646 lb was the Porsche 911 GT3 Cup presented in September for one-make cup racing. Thanks to its increase in engine size by 0.2 litres, the GT3 R offers 30 bhp more than the Cup model. Both cars are based on the extra-wide body of the 911 GT3 RS street-legal sports car.

An anti-lock brake system (ABS), traction control and an e-gas with "throttle-blip" function make it much easier to get used to this new GT3 racing car than its predecessor, meaning that the new model is also more appropriate for the ambitious amateur racing driver.

Flared wheel arches added on to the body both front and rear bear clear testimony to the wider track than on the former model. And like all second-generation versions of the 911, the new 911 GT3 R also comes with striking LED rear light clusters.

The Porsche 911 GT3 R is making its world debut on 14 January 2010 at the Birmingham Motor Show. The car is built by Porsche's Motorsport Department at the Weissach Development Centre and will be delivered to Customer Teams the world over as of spring 2010. The base price of the Porsche 911 GT3 R is 279,000 Euros ex factory.(C) 2009 Al Bawaba (www.albawaba.com)

The multi-stage process is to culminate in the merger of Volkswagen and Porsche during the course of 2011.

Volkswagen has said that the next milestone is its 49.9% participation in Porsche which is planned for realization by the end of 2009; and the extraordinary general meeting on December 3, 2009, where the agenda includes a proposal to shareholders to adopt a resolution authorizing the issue of new preferred shares.

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About SMSC's Automotive Product Line

SMSC's Automotive Information Systems is a supplier of TrueAuto(TM) infotainment and information semiconductor solutions to major automakers, including Audi, BMW, Daimler, Hyundai/Kia, Jaguar, Land Rover, Porsche, Toyota and Volvo. SMSC is a founding member of the MOST Cooperation, a cooperative of automakers, automotive systems architects and manufacturers and key components suppliers working to extend and refine the MOST(R) standard for the evolving requirements of automotive multimedia networking. Additional information is available at www.smsc-ais.com.

About SMSC

SMSC is a leading developer of Smart Mixed-Signal Connectivity(TM) solutions. SMSC employs a unique systems level approach that incorporates a broad set of technologies and intellectual property to deliver differentiating products to its customers. The company is focused on delivering connectivity solutions that enable the proliferation of data in personal computers, automobiles, portable consumer devices and other applications. SMSC's feature-rich products drive a number of industry standards and include USB, MOST(R) automotive networking, embedded system control and analog solutions, including thermal management and RightTouch(TM) capacitive sensing. SMSC is headquartered in New York and has offices and research facilities in North America, Asia, Europe and India. Additional information is available at www.smsc.com.

Forward Looking Statements

Except for historical information contained herein, the matters discussed in this announcement are forward-looking statements about expected future events and financial and operating results that involve risks and uncertainties. These uncertainties may cause our actual future results to be materially different from those discussed in forward-looking statements. Our risks and uncertainties include the timely development and market acceptance of new products; the impact of competitive products and pricing; our ability to procure capacity from our suppliers and the timely performance of their obligations, commodity prices, interest rates and foreign exchange, potential investment losses as a result of liquidity conditions, the effects of changing economic and political conditions in the market domestically and internationally and on our customers; our relationships with and dependence on customers and growth rates in the personal computer, consumer electronics and embedded and automotive markets and within our sales channel; changes in customer order patterns, including order cancellations or reduced bookings; the effects of tariff, import and currency regulation; potential or actual litigation; and excess or obsolete inventory and variations in inventory valuation, among others. In addition, SMSC competes in the semiconductor industry, which has historically been characterized by intense competition, rapid technological change, cyclical market patterns, price erosion and periods of mismatched supply and demand.

Our forward looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations and may not reflect the potential impact of any future acquisitions, mergers or divestitures. All forward-looking statements speak only as of the date hereof and are based upon the information available to SMSC at this time. Such statements are subject to change, and the Company does not undertake to update such statements, except to the extent required under applicable law and regulation. These and other risks and uncertainties, including potential liability resulting from pending or future litigation, are detailed from time to time in the Company's reports filed with the SEC. Investors are advised to read the Company's Annual Report on Form 10-K and quarterly reports on Form 10-Q filed with the Securities and Exchange Commission, particularly those sections entitled "Other Factors That May Affect Future Operating Results" or "Risk Factors" for a more complete discussion of these and other risks and uncertainties.

SMSC and MOST are registered trademarks and Smart Mixed-Signal Connectivity, TrueAuto and RightTouch are trademarks of Standard Microsystems Corporation.

SOURCE: SMSC

SMSC 
Carolynne Borders, 631-435-6626 
Senior Director, 
Corporate Communications & Investor Relations 
carolynne.borders@smsc.com