Zarlink Semiconductor Announces Exercise of Over-Allotment Option

The Offering was underwritten by a syndicate led by CIBC World Markets,which included National Bank Financial, RBC Capital Markets and ScotiaCapital.

This news release shall not constitute an offer to sell or thesolicitation of an offer to buy, nor shall there be any offer or sale of theConvertible Debentures in any jurisdiction in which such offer, solicitationor sale would be unlawful prior to registration or qualification under thesecurities laws of any such jurisdiction.

A copy of the prospectus related to the Offering may be obtained from CIBCWorld Markets Inc., 161 Bay Street, Toronto, ON, M5J 2S8, Attention: LovenaDoodahnand (416) 594-7270.

About Zarlink Semiconductor

For over 30 years, Zarlink Semiconductor has delivered semiconductorsolutions that drive the capabilities of voice, enterprise, broadband andwireless communications. The Company's success is built on its technologystrengths including voice and data networks, optoelectronics and ultralow-power communications. For more information, visit .

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

Certain statements in this press release constitute forward-lookingstatements within the meaning of the Private Securities Litigation Reform Actof 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 anyfuture results, performance, or achievements expressed or implied by suchforward-looking statements. Such risks, uncertainties and assumptions include,among others, the following: our dependence on the successful development andmarket introduction of new products; our ability to successfully integratebusinesses acquired in the future; our ability to operate profitably andgenerate positive cash flows in the future; our dependence on our foundrysuppliers and third-party subcontractors; order cancellations and deferrals byour customers; and other factors referenced in our Annual Report on Form 20-F.Investors are encouraged to consider the risks detailed in this filing.

Zarlink and the Zarlink Semiconductor logo are trademarks of Zarlink

Semiconductor Inc.