Digi-Key and Micrel Announce Distribution Agreement

THIEF RIVER FALLS, Minnesota, USA - August 15, 2005

Micrel, Inc. has signed a new distribution agreement with a proven leader in electronic component distribution, Digi-Key Corporation. The global distributor will offer Micrel's comprehensive line of advanced mixed-signal, analog and power semiconductors; high performance communication, clock management, Ethernet switch and physical layer transceiver ICs.

Micrel is a world leader in award-winning power and mixed-signal analog, RF transceivers and transmitters, high bandwidth communications and Ethernet IC solutions. The company's product portfolio addresses the needs of the industry's most demanding applications in markets such as telecommunications and networking, cellular telephones, enterprise servers, portable computer systems, computer peripherals, process control systems, factory automation, consumer electronics and power supplies. Micrel's comprehensive product line of more than 4,500 IC solutions will be made available through Digi-Key.

"Micrel is a great addition to our semiconductor product offering, which includes many top global suppliers," said Mark Larson, President and COO of Digi-Key. "We are pleased to have Micrel as another option for the prototype and production requirements of our customers."

Customers can browse and purchase Micrel's broad range of products through Digi-Key's printed product catalog or through their Web site at www.digikey.ie. Customers purchasing Micrel's technology can expect exceptional customer service for both their engineering and production needs including product availability, same-day shipping, and on-time delivery.

"Micrel and Digi-Key posses a tremendous synergy based on leading-edge products and world-class customer service that will serve all of our customers well," noted Bob Filiault, director of worldwide channel sales, Micrel. "With Micrel's proprietary product solutions and Digi-Key's outstanding global customer service, we can reach more customers, with more products, than ever before."

About Micrel, Inc.

Micrel Inc. is a leading global manufacturer of IC solutions for the worldwide analog, Ethernet and high bandwidth markets. The company's products include advanced mixed-signal, analog and power semiconductors; high performance communications, clock management, Ethernet switch and physical layer transceiver ICs. Company customers include leading manufacturers of enterprise, consumer, industrial, mobile, telecommunications, automotive, and computer products. Corporation headquarters and state-of-the-art wafer fabrication facilities are located in San Jose, CA with regional sales and support offices and advanced technology design centers situated throughout the Americas, Europe and Asia. In addition, the company maintains an extensive network of distributors and reps worldwide. Web: www.micrel.com.

About Digi-Key Corporation

Digi-Key Corporation, based in Thief River Falls, Minn., is a global, full-service provider of both prototype/design and production quantities of electronic components, offering more than three million products from over 650 quality name-brand manufacturers. With over one million products in stock and an impressive selection of online resources, Digi-Key is committed to stocking the broadest range of electronic components in the industry and providing the best service possible to its customers. Additional information and access to Digi-Key's broad product offering is available on the Digi-Key website.