Zarlink Notified of Noncompliance With NYSE Continued Listing Standard

OTTAWA, CANADA--(Marketwire - Dec. 21, 2007) - Zarlink Semiconductor Inc. (TSX:ZL)(NYSE:ZL) today announced that on December 18th, 2007 it was notified by NYSE Regulation, Inc. that the Company was not in compliance with one of the New York Stock Exchange ("NYSE") continued listing requirements, due to the fact that the average closing price of the Company's common shares was less than US$1.00 over a consecutive 30-day trading period.

Zarlink must notify NYSE Regulation by January 2, 2008 of its intention to cure this deficiency. If at the end of a six-month cure period, both a US$1.00 share price and a US$1.00 average share price over the preceding 30 trading days are not attained, the NYSE will commence suspension and delisting procedures. The Company is reviewing its options with a view to remedying the listing deficiency.

Beginning December 24, 2007 the NYSE will make available on its consolidated tape an indicator (".BC") to reflect that the Company is below the NYSE's quantitative continued listing standards.

About Zarlink Semiconductor

For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, optoelectronics and ultra low-power communications. 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 Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.