OTTAWA, CANADA, Jun 03 (MARKET WIRE) —
Zarlink Semiconductor Inc. (TSX: ZL) today announced that the Toronto
Stock Exchange (TSX) has approved the common share buyback program
authorizing the Company to repurchase up to 11,874,330 common shares,
representing approximately 10 percent of its public float of 118,743,306
common shares as of May 31, 2010. As at May 31, 2010, Zarlink had
121,606,782 issued and outstanding common shares.

The NCIB will allow Zarlink to repurchase up to 10 percent of its public
float of common shares using available cash during a 12-month period from
June 7, 2010 to June 6, 2011. The timing and exact number of common
shares purchased under the bid will be at Zarlink’s discretion, will
depend on market conditions, and may be suspended or discontinued at any
time. All shares purchased by Zarlink under the bid will be cancelled.

Purchases under the bid will be made at the prevailing market price
through the facilities of TSX. The average daily trading volume of
Zarlink over the last six complete calendar months was 407,108 common
shares (the “ADTV”). Under TSX rules, Zarlink may purchase up
to 25% of the ADTV (or 101,777 common shares) per trading day. To the
knowledge of Zarlink, after reasonable inquiry, no director, senior
officer or any of their associates, or any person acting jointly or in
concert with Zarlink, currently intends to sell common shares under the
issuer bid.

Zarlink purchased, through the facilities of TSX, 921,900 common shares
out of a maximum permitted amount of 11,971,633 common shares under a
previous normal course issuer bid which expired May 29, 2010 at an
average price of $0.9157 per share. All common shares purchased by
Zarlink under the bid were cancelled.

“We believe that the stock repurchase program emphasizes our belief
in the long-term value of Zarlink and our commitment to unlock
shareholder value,” said Mr. Adam Chowaniec, Chairman of the Board,
Zarlink Semiconductor.

Zarlink may enter into an automatic share purchase plan with a broker in
order to facilitate repurchases of its Common Shares under its normal
course issuer bid. Under the automatic share purchase plan, Zarlink’s
broker may repurchase shares under the normal course issuer bid at any
time including, without limitation, when Zarlink would ordinarily not be
permitted to due to possession of material non-public information or
blackout periods imposed by Zarlink on insiders. Purchases would be made
by Zarlink’s broker based upon the parameters prescribed by the TSX and
applicable Canadian and United States securities laws and the terms of
the parties’ written agreement.

As previously disclosed, American Appraisal Canada Inc. (“American
Appraisal”) was engaged by Zarlink’s Board of Directors to prepare a
valuation report for Zarlink’s formal issuer bid launched on June 8, 2009
under which it purchased $21,000 principal amount of the convertible
debentures (the “Valuation”). The Valuation, which is dated May
29, 2009, contains American Appraisal’s opinion that, based on the scope
of its review and subject to the assumptions, restrictions and
limitations provided therein, the fair market value of the convertible
debentures, as of May 18, 2009, falls within the range (per $100
principal amount) of $51.10 to $58.60. The Valuation is available at
www.sedar.com.

About Zarlink Semiconductor

Zarlink Semiconductor delivers world-leading, mixed-signal chip
technologies for a broad range of communication and medical applications.
The company’s core capabilities include network timing solutions that
manage time-sensitive communication applications over wireless and wired
networks, line circuit products supporting high-quality voice services
over broadband connections, and ultra low-power radios enabling new
wireless medical devices and therapies. Serving the world’s largest
original equipment manufacturers, Zarlink’s highly integrated chip
solutions help customers simplify design, lower costs and reach market
quickly. For more information, visit www.zarlink.com.

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

Certain statements in this press release constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 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 any future results, performance, or achievements expressed
or implied by such forward-looking statements. Such risks, uncertainties
and assumptions include, among others, the following: our dependence on
the successful development and market introduction of new products; our
ability to integrate any business, technologies, product lines or
services that we have or will acquire; our dependence on revenue
generation from our legacy products in order to fund development of our
new products; current market conditions, including the lack of liquidity
in the markets and economic slowdown, may increase our operating costs or
reduce our revenue, thereby negatively impacting our operating results;
our ability to operate profitably and generate positive cash flows in the
future; the impact of the current economic crisis on our suppliers and
customers and our ability to transfer parts to other suppliers; our
dependence on our foundry suppliers and third-party subcontractors; order
cancellations and deferrals by our customers; our substantial
indebtedness could adversely affect our financial position; the cost and
accounting implications of compliance with new accounting standards; 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.

Contacts:
Zarlink Semiconductor Inc.
Ed Goffin
Media Relations and Investor Relations
613-270-7112
edward.goffin@zarlink.com
www.zarlink.com

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