Company Overview Q4 FY2011

1. Company Overview Q4 FY2011

2. Forward-looking statements Certain statements in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the applicable regulations of the Canadian Securities Administrators. 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; significant fluctuations in foreign exchange rates may adversely impact our results of operations; 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.

3. World-leading mixed signal chip technology for communications and medical markets Communication products ~ 78% of revenue Mixed Signal Expertise is our Competitive Advantage Medical products ~ 12% of revenue 3 **~10% of revenue derived from custom products

4. Timing business growing at • double-digit rate • Leading supplier of timing chips to support real-time services over wireless networks • Expanding opportunity in optical transport networks 3 2. Sole supplier of radios for wireless healthcare devices Core Platforms Driving Growth • Medical-grade radios linking in-body devices and programming/monitoring equipment • Customer product introductions anticipated in FY12 • Strong & stable line circuitbusiness • Dominates voice over cable market, winning share in DSL, growth opportunity in emerging economies • Scale and relationships to help drive timing business 4 4

5. High-bandwidth smartphone services driving timing opportunity • Higher bandwidth, lower cost packet networks to connect cell sites and network backbone • Requires timing at base stations and routers to synchronize network and ensure services for new and existing communication applications Growth opportunity for timing – less than 10% of cell sites in U.S. converted to packet backhaul New High Bandwidth Content Overwhelming Traditional Networks • T1/E1 lines connecting base stations with network backbone unable to meet bandwidth demands created by new content & expensive to operate Ethernet Backhaul 5

6. Growing market opportunity for timing in optical network deployments CPE & ACCESS METRO CORE Base station controller Wireless base station ClockCenter Packet Timing OTN • Carriers deploying optical networks to support multiple services over less infrastructure • New ClockCenter platform supports all communication services over optical networks to help solve capacity and bandwidth issues in the core • Zarlink single-chip solutions reduce design complexity and cost while improving performance versus competing multi-chip solutions 6

7. Only supplier of medical-grade radios for in-body use • Joint R&D projects with leading medical device manufacturers • High barriers to entry for competition WirelessHealthcare Ramping product introductions • Designed into St. Jude Medical’s pacemakers and ICDs • Large OEM in final approvals with devices integrating ZL radio • Given Imaging capsule endoscopy in regulatory and insurance approvals • Emerging customers deploying ZL radio in advanced applications Driving long-term revenue opportunity for medical products Long-term revenue • “Sticky” designs in products with 10+ year life cycle 7

8. Zarlink low-power radio expertise enabling “always-on” patient monitoring • Remote health and device monitoring, wireless link can be used to adjust performance • During implant surgery, programming equipment remains outside sterile environment • Zarlink radio enables high-speed data link between implanted device and monitoring equipment • Requires no patient intervention • Ultra-low power radio enables wireless performance without impacting device battery life • “Always-on” patient monitoring potentially improves care & lowers healthcare costs • Designed into pacemakers and ICDs from leading OEMs, expanding opportunity in new wirelessly enabled therapies, neurostimulation and body area network applications 8

9. Radio solution for world’s only wireless endoscopy Given Imaging PillCam approved for small bowel and esophagus examination, in approvals for colon cancer screening • Zarlink radio transmits video-quality images from PillCam to data recorder • Over 1.2 million patients have benefited from PillCam procedure – a simple, safe and non-invasive alternative to traditional imaging of small bowel and esophagus • Capsule for colon examination now in trials in United States, Europe and Japan 9

10. Growth opportunities for our wireless medical expertise Zarlink has joint R&D projects with largest device manufacturers and emerging suppliers Deep brain stimulation Hearing assistance Neuro-stimulator Blood pressure Functional stimulation Wirelessendoscopy Defibrillator (ICD)/ Cardiac pacemaker Energy harvesting Gastric stimulator Drug delivery/Insulin pump 10 10 Bladder control

11. Line circuit opportunities in telco and cable networks DSL FTTx Belgacom NTT & Verizon copper fiber FTTx Hybrid China Telecom AT&T fiber fiber copper Cable Comcast & Rogers fiber cable 11

12. Fiber deployments in developing countries driving demand for new line circuit solutions fiber Growth opportunity for line circuits – ~5% fiber penetration rate in China Line circuit at subscriber replaces functions traditionally supported at Central Office High-quality voice over broadband Remote diagnosticslower operating costs • Zarlink Next Generation Carrier Chipset (NGCC) • Deployed in Multi-Service Access Nodes (MSAN) “pizza boxes” or pedestal at the subscriber in developing and under-developed countries, greenfield fiber deployments • Field programmable, upgradable & remote line diagnostics support lower operating costs by reducing technical service calls 12

13. Top priorities to accelerate growth Win designs across existing timing, medical wireless and line circuit platforms, introduce derivatives to expand market opportunity Revenue Growth from Core Platforms Launchnew medical radio platform with OEM, continue to expand relationships with St. Jude Medical, Given Imaging and emerging suppliers Grow Medical Business Manage Product Portfolio Target80% of revenue from core product platforms, manage declining legacy businesses, increase gross margin 13

14. Financial review 14

15. Revenue and Gross Margin Performance 53% 53% 52% 51% 52% 51% 50% $49.8 $55.2 $56.9 $54.8 $50.0 $58.7 $59.9 (In millions) $19.3 15 All values in USD unless otherwise stated *Company sold optical business May 17, 2010, so results have been reported as discontinued operations for current and comparative periods

16. Generating strong cash flow Cash position increased by $53.8 million over past four quarters ($ in millions) 16

17. Income statement highlights* • *Includes a $13.7M income tax recovery due to a reduction in valuation allowance related to deferred tax assets in Canada and the U.K. • ** Includes a $17.3 million income tax recovery related to deferred tax assets in Canada and a $14.1M gain related to the sale of the Sweden real estate and a $0.9M F/X loss 17 **For a full definition, see Company’s MD&A and Financial Statement and notes filings for the period ended March 25, 2011.

18. Outlook: F2012 first quarter guidance* *All values in USD unless otherwise stated 1 Excluding any potential impact of f/x gains/losses related to the Company’s Canadian dollar denominated debenture and workforce redeployment costs 18

19. Market data 19