Digi-Key Corporation Signs New Global Distribution Agreement with Zilog

THIEF RIVER FALLS, Minnesota, USA - October 12, 2005

Digi-Key Corporation, one of the world's fastest growing distributors of electronic components, announces it has recently contracted with Zilog, Inc. to expand its current agreement to that of a Global Franchise.

Digi-Key President Mark Larson states, "Zilog's history of bringing innovative products to the market is the perfect fit for the hundreds of engineers Digi-Key serves daily. Zilog products allow the customer faster time-to-market. Digi-Key service supports this cost-effective approach by consistently offering its customers on-time delivery along with the broadest product offering and highest stocking levels in the industry. Digi-Key's worldwide franchise for Zilog will allow us to offer its leading edge products to engineers in Digi-Key's fastest growing markets in Japan, Asia, and Europe."

Zilog, a design solution company specializing in embedded and integrated circuits, continues to innovate the design world with its broad range of products. Zilog is the inventor of the award-winning Z80® and Z8® architectures and continues to reinvent its core product lines, most recently with the introduction of the Z8 Encore!®, Z8 Encore! XP®, eZ80Acclaim!®, and the new Z8 Encore! MC™ (Motor Control) families of flash microcontrollers.

Within Zilog's extensive product families are devices focused toward consumer electronics, home appliances, sensors, HVAC, security, point-of-sale, computer peripherals, Infared (IR) remotes, and industrial and automotive markets worldwide.

"Digi-Key has done an outstanding job of placing Zilog's products into the hands of thousands of design engineers throughout the United States," said Mike Perlman, Zilog's Vice President of Business Marketing & Worldwide Distribution. "They have executed extremely well on their Global expansion initiative and as a result, have become a very valuable and essential supply resource for design engineers worldwide. It naturally follows that Zilog is very excited to expand our agreement with Digi-Key to include Asia, Europe, and Japan."

Zilog's innovative line of products can be viewed in Digi-Key's traditional 1600-plus page product catalog or on its top-rated Web site at www.digikey.ie.

About Zilog, Inc.

Founded in 1974, Zilog earned international acclaim for designing one of the first architectures in the microprocessors and microcontrollers industry. Today, the company is a leading global supplier of 8-bit micrologic devices. Zilog designs and markets a broad portfolio of devices for embedded control and communications applications used in consumer electronics, home appliances, security systems, point-of-sale terminals, personal computer peripherals, as well as industrial and automotive applications. Headquartered in San Jose, CA, Zilog employs approximately 520 people worldwide and has sales offices and design centers in Asia, Europe, and North America. For more information about Zilog and its products, visit the company's Web site at www.Zilog.com.

About Digi-Key

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.

Media Contact: Steven G. Tsukichi, VP/Marketing, Digi-Key Corporation