Digi-Key Corporation and Catalyst Semiconductor, Inc. Announce Worldwide Distribution Agreement

THIEF RIVER FALLS, Minnesota, USA - August 28, 2007

Electronic components distributor Digi-Key Corporation and Catalyst Semiconductor, Inc. (NASDAQ:CATS), a supplier of analog, mixed-signal and non-volatile memory semiconductors, announced today that the companies have signed a global distribution agreement under which Digi-Key will offer Catalyst's analog, mixed signal and non-volatile memory products.

Catalyst's products include LED drivers, DC-DC converters, Low Dropout Drivers (LDD™), linear regulators, voltage supervisors, Digitally Programmable Potentiometers (DPP™), I/O expanders, EEPROMs, Flash memories and NVRAM. Among Catalyst's products offered by Digi-Key are the award-winning Quad-Mode™ LED drivers, which provide 10 percent higher efficiency and up to 65 percent smaller packaging compared to competitive LED drivers.

Catalyst Semiconductor products stocked by Digi-Key are featured in its print and online catalogs and are available for purchase directly from Digi-Key. This new distribution agreement will enable Digi-Key to fulfill both the prototype and production quantity requirements of its customers.

"In our commitment to meet the needs of the very diverse customer base we serve, we are extremely excited to add Catalyst Semiconductor to our line card," said Digi-Key President Mark Larson. "We are also certain that Catalyst's products will be of great interest and appeal to Digi-Key's customers."

"Digi-Key is well known in the industry for providing excellent service and product availability, with incomparable logistics support," said Scott Brown, vice president of marketing for Catalyst Semiconductor. "We are very excited to partner with Digi-Key and look forward to the enhanced service they will provide to our global customers."

About Catalyst Semiconductor, Inc.

Founded in 1985, Catalyst Semiconductor, Inc. is headquartered in Santa Clara, California. The company produces analog and mixed signal products in addition to an extensive range of non-volatile memories. The analog and mixed-signal product lines include digitally programmable potentiometers (DPP™), white and color LED drivers, DC/DC converters, voltage supervisors, linear regulators and I/O expanders. The memory product lines consist of serial and parallel EEPROMS, Flash and NVRAM. Catalyst's devices are used in telecommunications, networking systems, computation, automotive, industrial and consumer markets. Typical applications include LCD displays, automotive instrumentation, optical networks, modems, wireless LANs, network cards, DIMM modules, cellular telephones, digital satellite box receivers, set-top boxes and internet routers. Catalyst's Quality Management System is ISO 9001-2000 certified. All Catalyst products are available in "green" lead- and halogen-free versions with full RoHS compliance. For additional information about Catalyst Semiconductor, visit www.catsemi.com.

Trademark notices: DPP, LDD and Quad-Mode are trademarks of Catalyst Semiconductor, Inc.

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.