The company plans to purchase up to 2 million shares. The program provides that repurchased shares may be reissued to employees under the company’s stock option and stock purchase plans.

The company plans to continue purchasing shares under the program at appropriate opportunities based on several factors, including the level of employee stock option exercises, the price of VLSI’s stock, and market conditions.

About VLSI Technology

VLSI Technology, Inc. designs and manufactures System-Level Silicon(tm) integrated circuits based on its FSB(tm) functional system blocks(tm) library. Targeting its offerings toward the wireless communications, networking, consumer digital entertainment and computing markets, the company offers its customers advanced system-level integration capabilities.

Note to Editors: FSB, functional system blocks and System-Level Silicon are trademarks of VLSI Technology, Inc. All other brand or product names are trademarks and/or registered trademarks of their respective owners.