Digi-Key Corporation and SMSC Sign Global Distribution Agreement

THIEF RIVER FALLS, Minnesota, USA - October 17, 2006

Digi-Key Corporation today announced the signing of a global distribution agreement with SMSC, a world leader in semiconductor system solutions.

One of the fastest growing distributors of electronic components in the world, Digi-Key Corporation focuses on service and performance as it serves its global customer base from its single location in Thief River Falls, Minnesota. SMSC products will be available for purchase through Digi-Key’s print and online catalogs with this new worldwide distributorship agreement allowing Digi-Key to fulfill both the design and production quantity needs of its growing customer base.

Leveraging substantial intellectual property, integration expertise and a comprehensive global infrastructure, SMSC solves design challenges and delivers performance, space, cost and time-to-market advantages to its customers. The company has developed leadership positions by providing application specific solutions such as mixed-signal PC system controllers, non-PCI Ethernet, ARCNET, MOST and Hi-speed USB to its customers. Based in Hauppauge, NY with operations in North America, Asia and Europe, SMSC has engineering design centers located in Arizona, New York, Texas and Karlsruhe, Germany.

"SMSC's global agreement with Digi-Key provides a new channel for efficient and convenient access to SMSC's innovative products and solutions," said Mitch Statham, vice president of sales for SMSC. "Digi-Key’s position as a premier catalog distributor allows both SMSC and Digi-Key the opportunity to serve an expanding global customer base."

"Digi-Key is dedicated to providing its customers with new and innovative products, and to that end, we are thrilled to add SMSC to our line card," said Mark Larson, Digi-Key’s president and COO. "The addition of SMSC further fortifies our semiconductor product offering and allows us to better serve the diverse electronic component needs of our customers."

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.