PHYWORKS LEVERAGES JAZZ SEMICONDUCTOR’S 0.35 AND 0.18-MICRON SiGe BiCMOS PROCESS TECHNOLOGIES TO MAINTAIN COMPETITIVE EDGE FOR FTTx MARKET

BRISTOL, UK and NEWPORT BEACH, Calif., April 17, 2007 -- Phyworks, Ltd., a leading supplier of integrated circuits (ICs) for the communications industry, and Jazz Semiconductor®, a wholly owned subsidiary of Jazz Technologies™, Inc. (AMEX: JAZ) and an independent wafer foundry focused primarily on specialty CMOS process technologies, today announced Phyworks is leveraging Jazz Semiconductor’s 0.35 and 0.18-micron Silicon Germanium (SiGe) BiCMOS process technologies for next-generation products in the FTTx market, offering high performance SiGe transimpedance amplifiers (TIA) and transceiver devices.

According to Communications Industry Researchers Inc. (CIR), Passive Optical Networking (PON) is expected to rise to 45 million subscribers by 2010, increasing the pressure on network operators to make their systems more efficient. Phyworks high performance FTTx Transceivers and Transimpedance amplifiers have become the preferred choice of many module manufacturers operating in these GPON (Gigabit Passive Optical Networks), BPON (Broadband Passive Optical Networks) and GEPON (Gigabit Enabled Passive Optical Networks) markets.

Phyworks offers two highly integrated FTTx transceivers designed using Jazz’s 0.35-micron SiGe process (SBC35); the PHY1078 optimized for 1.25Gbps GEPON, and the PHY2078 designed for the higher bandwidth 2.5Gbps GPON.

Phyworks FTTx transimpedance amplifiers, the PHY1095 and PHY1097, are designed using Jazz’s 0.18-micron process (SBC18). The TIA’s complement the transceiver ICs by offering the highest sensitivity available and low noise, extending network reach without compromising quality.

Jazz SBC18 provides a next-generation solution for ultra low power, integrated wireless and networking products that require high-performance bipolar transistors with high-quality passives together with high density digital logic. SBC18 uses a self-aligned 0.18-micron SiGe bipolar transistor with an Ft of 75GHz enabling new RF circuit benchmarks for gain, noise figure and linearity to be attained at a cost that is competitive with previous-generation solutions. In addition to the availability of two low-noise SiGe transistors, the SBC18 process platform includes options for a 150GHz SiGe transistor, high-speed vertical PNP transistors, 5.6fF/um2 high-density MIM capacitors, varactors, poly resistors, high-Q inductors built in thick top metal layers, deep trench or triple-well isolation, and is available with three to six layers of metal.

SBC35 is a mature, low-power, and cost-effective solution for both networking and wireless applications. Designers have the flexibility of using any combination of three SiGe bipolar (NPN) transistors, each of which provides a different optimization for power and speed. The highest speed transistor has an Ft of 62GHz and is used for high-performance blocks while the high power transistor can be used to integrate power amplifiers or high-speed drivers on the same chip. In addition to the three SiGe bipolar (NPN) transistors, SBC35 comes standard with 3.3 volt CMOS, deep trench isolation, lateral PNP transistors, MIM and MIS capacitors, high-performance varactors, poly and Nwell resistors, and high-Q inductors. SBC35 options include 5V CMOS, a vertical PNP transistor, a higher density linear MIM/MIS capacitor stack at 5.3fF/um2, triple-well isolation, three or four layers of metal, and a thick top-metal.

”We continue to utilize Jazz process technologies for our next-generation products to provide us with a competitive advantage. Jazz offers advanced processes and provides us with the benefits of a high degree of flexibility and reliability as well as a high level of support in our business critical projects with tight timescales,” said Tim Esparon, VP of manufacturing operations, Phyworks. “Jazz is focused on high speed process technologies which align with our product needs, providing us with the features that enable us to reduce design cycle time, reduce costs, and achieve quick time to market.”

”Our range of technology and features allows customers like Phyworks to create differentiated high-speed products targeting multiple standards at different levels of integration while taking advantage of a known and consistent design environment and supplier interface,” said Marco Racanelli, vice president of technology and engineering, Jazz Semiconductor. “Leading edge, innovative customers like Phyworks in turn help Jazz remain at the forefront of analog process technology by providing valuable insight into the markets they serve helping to shape our joint future roadmaps.”

About Phyworks
Based in Bristol, UK, Phyworks is a leader in the design and manufacture of innovative analog and mixed signal integrated circuits for data and telecom networking systems and modules. Phyworks advanced EDC and TIA technologies are the enablers for enterprise networks operators in realizing cost effective 10Gbps performance over legacy multi-mode fiber. In addition, Phyworks offers a range of physical layer products covering data rates from 1Gbps to 10Gbps, including: re-timers, TIAs and integrated laser drivers and receivers. Phyworks recent introduction of their FTTx product line has set new performance and cost standards for GEPON and GPON applications throughout the world. Phyworks’ products are designed to address the market needs for smaller form factor, lower cost and higher performance modules and systems. The markets Phyworks products address include WAN, SAN, LAN and FTTx.

About Jazz Semiconductor
Jazz Semiconductor®, a wholly owned subsidiary of Jazz Technologies™, Inc. (AMEX: JAZ), is an independent wafer foundry primarily focused on specialty CMOS process technologies, including High Voltage CMOS, SiGe BiCMOS and RFCMOS for the manufacture of highly integrated analog and mixed-signal semiconductor devices. The company's specialty process technologies are designed for customers who seek to produce analog and mixed-signal semiconductor devices that are smaller and more highly integrated, power-efficient, feature-rich and cost-effective than those produced using standard process technologies. Jazz customers target the wireless and high-speed wireline communications, consumer electronics, automotive, and industrial end markets. Jazz executive offices and its U.S. wafer fabrication facilities are located in Newport Beach, CA. Jazz Semiconductor also has engineering, manufacturing, and sales support in Shanghai, China. The company has expanded its wafer capacity in China through manufacturing alliances with Advanced Semiconductor Manufacturing Corporation and Hua Hong NEC Electronics Co., Ltd. For more information, please visit www.jazzsemi.com.

Forward-Looking Statements
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Phyworks Company Contact
Heather Jones
+44 (0) 117 344 5072
heather.jones@phyworks-ic.com

Jazz Company Contact
Melinda Jarrell
949/435-8181
melinda.jarrell@jazzsemi.com

Jazz Media Contact
Lauri Julian
949/715-3049
lauri.julian@jazzsemi.com