|Exhibit 99.1
|------------



|[LOGO] Zarlink Semiconductor | News
|---------------------------- | ----



|Zarlink Semiconductor Releases Fourth Quarter
and Fiscal 2003 Results
|---------------------------------------------------------------------

| |  |  | Fourth quarter revenue grows 13% sequentially
| | - |  | ---------------------------------------------

| |  |  | Gross
margin improves to 50%
| | - |  | ----------------------------



|OTTAWA, CANADA, May 8, 2003  Zarlink Semiconductor
      Inc. (NYSE/TSX: ZL) today released fourth quarter and Fiscal 2003 results
      for the year ended March 28, 2003, prepared in accordance with U.S. Generally
      Accepted Accounting Principles (GAAP).
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Fourth quarter
revenue was US$52.8 million, up 13% from US$46.8 million  for the previous quarter and
slightly higher than the US$52.1 million reported  for the same period last year.
Improvements from the previous quarter were noted  across all segments of the companys
operations.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|As expected,
Zarlink recorded a fourth quarter net loss of US$23.6  million, or US$0.19 per share. In
comparison, the company recorded a net loss of  US$22.3 million or US$0.18 per share for
the same period in Fiscal 2002.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Fourth quarter results included
      two previously announced items: the US$11.5 million non-cash write-down
      of an investment and the US$6.6 million impact of settling a defined benefit
      pension plan in the United Kingdom.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|We are
encouraged by our sequential improvement in revenue and gross  margin, said Patrick
J. Brockett, President and Chief Executive Officer,  Zarlink Semiconductor. We also
continued our commitment to R&D investment in  Fiscal 2003 which fueled the release
of a record number of new products for the  year.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|The companys
net loss in Fiscal 2003 was US$57.9 million, or US$0.47  per share and improves on the
net loss of US$120.8 million, or US$0.98 per  share, in Fiscal 2002.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 
| |  | 



---





|Gross margin for
the fourth quarter improved to 50% of revenue, up from  45% in the previous quarter and
the 44% recorded in the same period last year.  The improvement reflects the higher plant
utilization and other favorable  manufacturing variances.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Order backlog
continued to improve for the third consecutive quarter.  At the end of the fourth
quarter, ninety-day order backlog was US$38 million, up  from US$36 million in the
previous quarter.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Cash (the companys cash
      is comprised of cash, cash equivalents, short-term investments and restricted
      cash)* at the end of the fourth quarter was in line with expectations at
      US$119 million, down from US$133 million in the previous quarter. The decrease
      was principally due to the settlement of the U.K. defined benefit pension
      plan and to the settlement of certain foreign currency contracts for the
      pound Sterling as against the US dollar in the fourth quarter. The combination
      of cash, cash equivalents, short-term investments and restricted cash is
      a non-GAAP measure, which is discussed below and reconciled in this press
      release.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Review of Operations
|--------------------



|R&D
investments in the fourth quarter were US$21.1 million or 40% of  revenue. This was
in-line with the US$23.8 million spent in the previous  quarter, which included severance
charges of US$2.5 million, and up from US$20.6  million for the same period in Fiscal
2002. R&D spending in the fourth quarter  included higher material costs as a result
of increased activity.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Selling and
Administrative expenses were US$12.6 million, including  severance costs of US$1.6
million, in-line with US$11.5 million for the previous  quarter, and down from US$13.7
million for the same period last year. The  company is keenly focused on cost control in
line with business expectations.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 
| |  | 



---





|Other expenses amounted to
      US$21.3 million in the fourth quarter. Major items included US$6.8 million
      of mostly non-cash foreign exchange charges, principally related to holding
      significant US dollar cash balances in the Canadian parent company, and
      the previously disclosed charges for the settlement of the U.K. defined
      benefit plan and the impairment of an investment. This was partially offset
      by a cash settlement gain of US$3.7 million on the early termination of
      a lease by a tenant.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|For Fiscal 2003,
Zarlink released 70 compelling new products - the  highest in the companys history
- as a result of its long-standing commitment  to time-to-market improvements. For the
fourth quarter, the company released 16  new products, including:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | the worlds first off-the-shelf, single-chip radio  transceiver
(transmitter/receiver) for cell phones used in multi-band,  multi-mode, 2G and 2.5G
digital cellular networks;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | a
family of four high-quality Ethernet switching chips that  cost-effectively aggregate 16
ports of Fast Ethernet traffic in metro  access equipment, including media gateways, edge
routers, and passive  optical networks. The devices are also targeted at VDSL (very
high-speed digital subscriber line) DSLAMs (digital subscriber line  access multiplexers)
and LAN (local area network) workgroup switches;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | three
new Voice Echo Canceller (VEC) chips that meet the performance  and cost requirements of
the booming market for PHS (a micro-cellular  standard defined in Japan) fixed-wireless
telephone equipment in Asia;  and
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | a
new family of 850-nm oxide-confined VCSELs (Vertical Cavity  Surface-Emitting Lasers)
that improve the performance of optical  equipment by generating a light beam of
unmatched stability -  overcoming the effects of current and temperature.
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|New Business Segments
|---------------------



|Commencing with
these results, the company is re-segmenting its  business as Network Communications,
Consumer Communications and Ultra Low-Power  Communications. The company previously
reported its business segments as  Communications and Medical. The change reflects the
evolution of the companys  business model and growth strategies corresponding with
these three segments.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 
| |  | 



---





|Network
Communications was previously known as Network Access and was  part of the Communications
segment. Consumer Communications was previously  called User Access and was also part of
the Communications segment. Ultra  Low-Power Communications was previously known as
Medical and now better reflects  the range of opportunities available in the
communications and healthcare  markets based on Zarlinks ultra low-power expertise.
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Adoption of U.S. Dollar Functional Currency
for Fiscal 2004
|-----------------------------------------------------------



|Commencing in
Fiscal 2004, the U.S. dollar has become the functional  currency across the companys
operations and will form the basis of measurement  in the companys financial
statements going forward. The U.S. dollar was  previously adopted in the third quarter of
Fiscal 2002 for purposes of  presenting its financial statements. This latest change
reflects the companys  increased economic activities denominated in U.S. dollars
and will eliminate  future non-cash translation gains or losses on the companys
U.S. cash reserves.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Fiscal 2004 First Quarter Guidance
|----------------------------------



|In the first quarter, the company
      expects revenue to be approximately US$55 million. The company also expects
      to record a net loss of approximately US$0.05 per share.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|About Zarlink Semiconductor
|---------------------------



|For almost 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, consumer
and ultra low-power  communications, and high-performance analog. For more information,
visit  www.zarlink.com.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|Shareholders and other individuals
      wishing to receive, free of charge, copies of the Annual and Quarterly Reports
       including the Annual Report on Form 10-K 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.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  | 
| |  | 



---





|(*) As a
supplementary measure to effectively manage the companys  total cash assets,
management combines its cash and cash equivalents with  short-term investments and
restricted cash to represent the companys total  portfolio of cash assets.
Short-term investments comprise highly liquid low-risk  debt instruments that are held to
maturity with terms of not greater than one  year, but generally for much shorter
periods. Restricted cash consists of cash  pledged with a bank as collateral for various
letters of credit. A detailed  reconciliation to arrive at the supplementary measure of
cash, cash equivalents,  short-term investments and restricted cash is attached in a
schedule to this  earnings press release. In this supplementary schedule, investing
activities  exclude items related to purchased short-term investments and matured
short-term  investments, and the effect of currency translation is calculated on all cash
assets. Readers are cautioned that cash, cash equivalents short-term investments  and
restricted cash combined together do not have any standardized meaning  prescribed by
GAAP and is therefore unlikely to be comparable to similar  measures prescribed by other
companies. These indicators should not be  considered as a substitute or alternative for
the consolidated statement of cash  flows.
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|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 risks discussed in documents filed by the Company with the  Securities and
Exchange Commission. Investors are encouraged to consider the  risks detailed in those
filings.
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|- 30 -
|------



|An open conference call for analysts, investors
and other interested parties  will be held today from 5:00-6:00pm EDT. Please dial
1-800-814-4890 or  613-287-8027. The replay number is 1-877-289-8525 (passcode 249702#)
or  416-640-1917 (passcode 249702#). The replay is available until midnight, May 15,
2003. The call will be webcast from www.vcall.com (World Investor Link) or via  the
companys website at www.zarlink.com. Media are listen only.
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|For further information:
      Jacques Guerette
      Corporate Communications 613 270-7110 jacques.guerette@zarlink.com | Mike McGinn
      Investor Relations
      613 270-7210
      mike.mcginn@zarlink.com
|------------------------------------------------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------



| |  | 
| |  | 



---





|Zarlink Semiconductor Inc.
CONSOLIDATED STATEMENTS OF LOSS DATA 
(in millions of U.S dollars, except per share amounts, U.S. GAAP) 
(Quarterly data is unaudited)
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                            | Three Months Ended     |  | Years Ended          
|--------------------------------------------------------------------------- | ---------------------- |  | ---------------------
|                                                                            | March 28,
        2003 |  | Dec. 27,
        2002
|
|                                                                            |                       
|Revenue                                                                     | $ 52.8                 |  | $ 46.8               
|Cost of revenue                                                             | 26.4                   |  | 25.6                 
|                                                                            |                       
|Gross margin                                                                | 26.4                   |  | 21.2                 
|                                                                            |                       
|Expenses:                                                                   |                        |  |                      
|Research and development                                                    | 21.1                   |  | 23.8                 
|Selling and administrative                                                  | 12.6                   |  | 11.5                 
|Stock compensation expense (recovery)                                       |                       |  |                     
|Special charges                                                             |                       |  |                     
|Loss (recovery) on sale of foundry
        business                         | (2.5)                  |  |                     
|Amortization of acquired intangibles                                        |                       |  |                     
|                                                                            |                       
|                                                                            | 31.2                   |  | 35.3                 
|                                                                            |                       
|Operating loss from continuing operations                                   | (4.8)                  |  | (14.1)               
|Other income (expense)  net                                                | (21.0)                 |  | 1.0                  
|Interest expense                                                            | (0.3)                  |  | (0.3)                
|                                                                            |                       
|Loss from continuing operations before incometaxes                          | (26.1)                 |  | (13.4)               
|Income tax expense (recovery)                                               | (0.1)                  |  | 0.3                  
|                                                                            |                       
|Net loss from continuing operations                                         | (26.0)                 |  | (13.7)               
|Discontinued operations, net of tax                                         | 2.4                    |  |                     
|                                                                            |                       
|Net loss for the period                                                     | $ (23.6)               |  | $ (13.7)             
|                                                                            |                       
|Net loss attributable to common shareholdersafter preferred share dividends | $ (24.1)               |  | $ (14.2)             
|                                                                            |                       
|Net loss per common share from continuingoperations:                        |                        |  |                      
|Basic and diluted                                                           | $ (0.21)               |  | $ (0.11)             
|                                                                            |                       
|Net loss per common share:                                                  |                        |  |                      
|Basic and diluted                                                           | $ (0.19)               |  | $ (0.11)             
|                                                                            |                       
|Weighted average number of common sharesoutstanding (millions):             |                        |  |                      
|Basic and diluted                                                           | 127.3                  |  | 127.2                
|                                                                            |                       
|Percentage of revenue:                                                      |                        |  |                      
|Gross margin                                                                | 50%                    |  | 45%                  
|Research and development                                                    | 40%                    |  | 51%                  
|Selling and administrative                                                  | 24%                    |  | 25%                  
|                                                                            |                        |  |                      



| |  | 
| |  | 



---





|Zarlink Semiconductor Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS DATA 
(in millions of U.S. dollars, U.S. GAAP) 
(Quarterly data is unaudited)
|----------------------------------------------------------------------------------------------------------------------------------------------

|                                                                          | Three Months Ended |  | Years Ended 
|------------------------------------------------------------------------- | ------------------ |  | ------------
|                                                                          | March 28,2003      |  | Dec. 27,2002
|
|                                                                          |                   
|Cash flows from operating activities:                                     |                    |  |             
|Net loss for the period                                                   | $ (23.6)           |  | $ (13.7)    
|Depreciation and amortization                                             | 4.1                |  | 3.4         
|Stock compensation expense (recovery)                                     |                   |  |            
|Deferred income taxes                                                     | 0.4                |  | 0.1         
|Other non-cash changes in operating
        activities                    | 19.8               |  | (0.5)       
|Decrease (increase) in working capital:                                   |                    |  |             
|Trade accounts and
        other receivables                              | 2.4                |  | 3.9         
|Inventories                                                               | (0.9)              |  | 5.6         
|Trade accounts payable
      and other accrued
               liabilities | 3.2                |  | (5.8)       
|Deferred credits                                                          | (5.4)              |  | 3.7         
|Prepaid expenses and
        other                                        | (4.1)              |  | 1.6         
|                                                                          |                   
|Cash used in operating activities                                         | (4.1)              |  | (1.7)       
|                                                                          |                   
|Cash flows from investing activities:                                     |                    |  |             
|Purchased short-term investments                                          |                   |  | (103.1)     
|Matured short-term investments                                            | 15.5               |  | 62.3        
|Proceeds from disposal of fixed and
        other assets                  |                   |  |            
|Expenditures for fixed and other assets                                   | (2.4)              |  | (1.4)       
|Increase in long-term investments                                         |                   |  |            
|Proceeds from sale of long-term investments                               |                   |  | 4.2         
|Proceeds from repayment of note receivable                                |                   |  | -          
|Proceeds from sale of discontinued operations
         net               |                   |  |            
|                                                                          |                   
|Cash provided by (used in) investing activities                           | 13.1               |  | (38.0)      
|                                                                          |                   
|Cash flows from financing activities:                                     |                    |  |             
|Repayment of long-term debt                                               |                   |  |            
|Repayment of capital lease liabilities                                    | (0.2)              |  | (0.4)       
|Payment of pension plan settlement                                        | (8.0)              |  |            
|Hypothecation of cash under letters
        of credit                     | (6.2)              |  |            
|Payment of dividends on preferred shares                                  |                   |  | (0.5)       
|Issue of common shares                                                    | 0.2                |  |            
|Repurchase of preferred shares                                            | (0.3)              |  | (0.9)       
|                                                                          |                   
|Cash used in financing activities                                         | (14.5)             |  | (1.8)       
|                                                                          |                   
|Effect of currency translation on cash and cash
         equivalents      | 1.2                |  | 1.4         
|                                                                          |                   
|Decrease in cash and cash equivalents                                     | (4.3)              |  | (40.1)      
|Cash and cash equivalents, beginning of period                            | 27.8               |  | 67.9        
|                                                                          |                   
|Cash and cash equivalents, end of period                                  | $ 23.5             |  | $ 27.8      
|                                                                          |                   



| |  | 
| |  | 



---





|Zarlink Semiconductor Inc.
CONSOLIDATED BALANCE SHEET DATA 
(in millions of U.S. dollars, U.S. GAAP)
|----------------------------------------------------------------------------------------------------

|                                      | March 28,2003 |  | Dec. 27,2002 |  | March 29,2002
|------------------------------------- | ------------- |  | ------------ |  | -------------
|
|                                      |              
|                                      | (Unaudited)  
|ASSETS                                |               |  |              |  |              
|                                      |               |  |              |  |              
|Current assets:                       |               |  |              |  |              
|Cash and cash equivalents             | $ 23.5        |  | $ 27.8       |  | $ 75.6       
|Short-term investments                | 89.5          |  | 105.3        |  | 78.8         
|Restricted cash                       | 6.2           |  |             |  |             
|Trade accounts receivable  net       | 20.3          |  | 21.0         |  | 24.2         
|Other receivables                     | 4.2           |  | 5.8          |  | 5.5          
|Inventories                           | 24.0          |  | 23.1         |  | 33.0         
|Deferred income tax assets  net      | 1.0           |  | 1.7          |  | 4.1          
|Prepaid expenses and other            | 7.3           |  | 10.4         |  | 13.7         
|                                      |              
|                                      | 176.0         |  | 195.1        |  | 234.9        
|Fixed assets  net                    | 56.4          |  | 57.3         |  | 58.1         
|Deferred income tax assets  net      | 10.4          |  | 11.1         |  | 11.0         
|Long-term investments                 |              |  | 11.2         |  | 14.1         
|Other assets  net                    | 4.8           |  | 4.3          |  | 3.0          
|                                      |              
|                                      | $ 247.6       |  | $ 279.0      |  | $ 321.1      
|                                      |              
|LIABILITIES AND SHAREHOLDERS EQUITY  |               |  |              |  |              
|                                      |               |  |              |  |              
|Current liabilities:                  |               |  |              |  |              
|Trade accounts payable                | $ 10.1        |  | $ 7.2        |  | $ 14.6       
|Employee-related accruals             | 15.5          |  | 13.1         |  | 11.7         
|Income and other taxes payable        | 13.0          |  | 8.3          |  | 5.9          
|Provisions for exit activities        | 4.2           |  | 12.2         |  | 19.8         
|Other accrued liabilities             | 12.6          |  | 12.2         |  | 17.7         
|Deferred credits                      | 1.1           |  | 12.8         |  | 2.2          
|Current portion of long-term debt     | 0.6           |  | 0.8          |  | 2.1          
|                                      |              
|                                      | 57.1          |  | 66.6         |  | 74.0         
|Long-term debt                        | 0.2           |  | 0.2          |  | 0.7          
|Pension liabilities                   | 14.3          |  | 20.6         |  | 17.4         
|Deferred income tax liabilities  net | 2.0           |  | 3.7          |  | 6.3          
|                                      |              
|                                      | 73.6          |  | 91.1         |  | 98.4         
|                                      |              
|Redeemable preferred shares           | 18.9          |  | 19.3         |  | 20.6         
|                                      |              
|Shareholders equity:                 |               |  |              |  |              
|Common shares                         | 768.3         |  | 768.1        |  | 767.6        
|Additional paid-in capital            | 2.1           |  | 2.1          |  | 4.1          
|Deferred stock compensation           |              |  |             |  | (0.8)        
|Deficit                               | (582.8)       |  | (559.0)      |  | (522.9)      
|Accumulated other comprehensive loss  | (32.5)        |  | (42.6)       |  | (45.9)       
|                                      |              
|                                      | 155.1         |  | 168.6        |  | 202.1        
|                                      |              
|                                      | $ 247.6       |  | $ 279.0      |  | $ 321.1      
|                                      |              



| |  | 
| |  | 



---





|Zarlink Semiconductor Inc.
SUPPLEMENTARY SCHEDULES 
(in millions of U.S. dollars, except per share amounts, U.S. GAAP) 
(Unaudited)
|-----------------------------------------------------------------------------------------------------------------------------------



|Cash, Cash Equivalents, Short-Term
Investments and Restricted Cash
|------------------------------------------------------------------



|As a supplementary measure to effectively manage
the Company's total cash  assets, management combines its cash and cash equivalents,
short-term  investments and restricted cash to represent the Company's total portfolio of
cash assets. Short-term investments comprise highly liquid low risk debt  instruments
that are held to maturity with terms of not greater than one year,  but generally for
much shorter periods. Restricted cash consists of cash pledged  with a bank as collateral
for various letters of credit. In this supplementary  schedule, investing activities
exclude items related to purchased short-term  investments and matured short-term
investments; financing activities exclude the  hypothecation of cash under letters of
credit; and the effect of currency  translation is calculated on all cash assets. A
detailed reconciliation to  arrive at the supplementary measure of cash, cash
equivalents, short-term  investments and restricted cash is presented below as part of
this earnings  press release. Readers are cautioned that cash, cash equivalents,
short-term  investments and restricted cash combined together do not have any
standardized  meaning prescribed by GAAP and is therefore unlikely to be comparable to
similar  measures prescribed by other companies. These indicators should not be
considered as a substitute or alternative for the consolidated statements of  cash flows.
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                                                                                                                                          | Three Months Ended |  | Years Ended 
|--------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------ |  | ------------
|                                                                                                                                                          | March 28,2003      |  | Dec. 27,2002
|
|                                                                                                                                                          |                   
|Cash and cash equivalents, beginning of period                                                                                                            | $ 27.8             |  | $ 67.9      
|Short-term investments, beginning of period                                                                                                               | 105.3              |  | 64.8        
|                                                                                                                                                          |                   
|Cash, cash equivalents and short-term investments,
         beginning of period                                                                           | 133.1              |  | 132.7       
|                                                                                                                                                          |                   
|Cash provided by (used in):                                                                                                                               |                    |  |             
|Operating activities, before changes in working capital                                                                                                   | 0.7                |  | (10.7)      
|Changes in working capital                                                                                                                                | (4.8)              |  | 9.0         
|                                                                                                                                                          |                   
|Operating activities                                                                                                                                      | (4.1)              |  | (1.7)       
|                                                                                                                                                          |                    |  |             
|Investing activities                                                                                                                                      | (2.4)              |  | 2.8         
|                                                                                                                                                          |                    |  |             
|Financing activities                                                                                                                                      | (8.3)              |  | (1.8)       
|                                                                                                                                                          |                   
|Cash inflows (outflows) before the effect of currency
         translation on cash, cash equivalents, short-term
         investments and restricted cash | (14.8)             |  | (0.7)       
|                                                                                                                                                          |                    |  |             
|Effect of currency translation on cash, cash equivalents,
         short-term investments and restricted cash                                             | 0.9                |  | 1.1         
|                                                                                                                                                          |                   
|Cash, cash equivalents, short-term investments and
         restricted cash, end of period                                                                | $ 119.2            |  | $ 133.1     
|                                                                                                                                                          |                   
|Represented by:                                                                                                                                           |                    |  |             
|Cash and cash equivalents, end of period                                                                                                                  | $ 23.5             |  | $ 27.8      
|Short-term investments, end of period                                                                                                                     | 89.5               |  | 105.3       
|Restricted cash, end of period                                                                                                                            | 6.2                |  |            
|                                                                                                                                                          |                   
|                                                                                                                                                          | $ 119.2            |  | $ 133.1     
|                                                                                                                                                          |                   

| |  | 
| |  | 



---





|Zarlink Semiconductor Inc.
SUPPLEMENTARY SCHEDULES 
(in millions of U.S. dollars, U.S. GAAP) 
(Unaudited)
|---------------------------------------------------------------------------------------------------------



|Product Information
|-------------------



|Revenue, by product, was distributed as follows:
|------------------------------------------------

|                               | Three Months Ended
|------------------------------ | ------------------
|                               | March 28,2003     
|
|                               |                   
|Network Communications         | $ 30.2            
|Consumer Communications        | 14.1              
|Ultra Low-Power Communications | 8.5               
|                               |                   
|Total                          | $ 52.8            
|                               |                   

|                               | Years Ended  
|------------------------------ | -------------
|                               | March 28,2003
|
|                               |              
|Network Communications         | $ 115.8      
|Consumer Communications        | 49.1         
|Ultra Low-Power Communications | 28.9         
|                               |              
|Total                          | $ 193.8      
|                               |              

|Geographic Information:
|-----------------------



|Revenue, based on the geographic location of
Zarlink's customers, was  distributed as follows:
|----------------------------------------------------------------------------------------------

|               | Three MonthsEndedMarch 28, 2003 |  | % ofTotal | Three MonthsEndedDec. 27, 2002 |        | % ofTotal | Three MonthsEndedMarch 29, 2002 |   | % ofTotal
|-------------- | ------------------------------- |  | --------- | ------------------------------ | ------ | --------- | ------------------------------- | - | ---------
|               |                                 |  |           |                                |        |           |                                 |   |          
|Asia  Pacific | $ 23.2                          |  | 44        | %                              | $ 17.6 |           | 37                              | % | $ 14.0   
|Europe         | 16.1                            |  | 31        |                                | 15.4   |           | 33                              |   | 22.4     
|Americas       | 13.5                            |  | 25        |                                | 13.8   |           | 30                              |   | 15.7     
|               |                                 |  |           |                                |        |           |                                 |   |          
|               | $ 52.8                          |  | 100       | %                              | $ 46.8 |           | 100                             | % | $ 52.1   
|               |                                 |  |           |                                |        |           |                                 |   |          

|               | YearEndedMarch 28, 2003 |  | % ofTotal | YearEndedMarch 29, 2002 |         | % ofTotal
|-------------- | ----------------------- |  | --------- | ----------------------- | ------- | ---------
|
|
|               |                         |  |           |                         |         |          
|Asia  Pacific | $ 75.5                  |  | 39        | %                       | $ 56.7  |          
|Europe         | 62.5                    |  | 32        |                         | 82.5    |          
|Americas       | 55.8                    |  | 29        |                         | 82.9    |          
|               |                         |  |           |                         |         |          
|               | $ 193.8                 |  | 100       | %                       | $ 222.1 |          
|               |                         |  |           |                         |         |          

| |  | 
| |  | 



---





|Zarlink Semiconductor Inc.
SUPPLEMENTARY SCHEDULES 
(in millions of U.S. dollars, U.S. GAAP) 
(Quarterly data is unaudited)
|---------------------------------------------------------------------------------------------------------------------------



|Information on Business Segments
|--------------------------------

|Three MonthsEnded March 28, 2003                | NetworkCommunications |  | ConsumerCommunications |  | Ultra Low-PowerCommunications |  | UnallocatedCosts |  | Total 
|----------------------------------------------- | --------------------- |  | ---------------------- |  | ----------------------------- |  | ---------------- |  | ------
|
|                                                |                       |  |                        |  |                               |  |                  |  |       
|Revenue                                         | $ 30.2                |  | $ 14.1                 |  | $ 8.5                         |  | $               |  | $ 52.8
|Depreciation of buildings and
        equipment | 2.3                   |  | 1.1                    |  | 0.1                           |  |                 |  | 3.5   
|Recovery on sale of foundry
          business  |                      |  |                       |  |                              |  | (2.5)            |  | (2.5) 
|Segments operating income
          (loss)     | 0.1                   |  | (5.4)                  |  | (2.0)                         |  | 2.5              |  | (4.8) 

|Three MonthsEnded Dec. 27, 2002                 | NetworkCommunications |  | ConsumerCommunications |  | Ultra Low-PowerCommunications |  | UnallocatedCosts |  | Total 
|----------------------------------------------- | --------------------- |  | ---------------------- |  | ----------------------------- |  | ---------------- |  | ------
|
|                                                |                       |  |                        |  |                               |  |                  |  |       
|Revenue                                         | $ 27.8                |  | $ 12.0                 |  | $ 7.0                         |  | $               |  | $ 46.8
|Depreciation of buildings and
        equipment | 2.4                   |  | 0.5                    |  | 0.2                           |  |                 |  | 3.1   
|Segments operating loss                        | (8.3)                 |  | (4.6)                  |  | (1.2)                         |  |                 |  | (14.1)

|Three MonthsEnded March 29, 2002                | NetworkCommunications |  | ConsumerCommunications |  | Ultra Low-PowerCommunications |  | UnallocatedCosts |  | Total  
|----------------------------------------------- | --------------------- |  | ---------------------- |  | ----------------------------- |  | ---------------- |  | -------
|
|                                                |                       |  |                        |  |                               |  |                  |  |        
|Revenue                                         | $ 26.3                |  | $ 16.7                 |  | $ 9.1                         |  | $               |  | $ 52.1 
|Depreciation of buildings and
        equipment | 3.0                   |  | 1.3                    |  | 0.1                           |  |                 |  | 4.4    
|Loss on sale of foundry
        business        |                      |  |                       |  |                              |  | 5.4              |  | 5.4    
|Special charge                                  |                      |  |                       |  |                              |  | 6.5              |  | 6.5    
|Stock compensation recovery                     |                      |  |                       |  |                              |  | (1.7)            |  | (1.7)  
|Segments operating income
          (loss)     | (8.9)                 |  | (3.6)                  |  | 1.3                           |  | (10.2)           |  | (21.4))

|Year EndedMarch 28, 2003                        | NetworkCommunications |  | ConsumerCommunications |  | Ultra Low-PowerCommunications |  | UnallocatedCosts |  | Total  
|----------------------------------------------- | --------------------- |  | ---------------------- |  | ----------------------------- |  | ---------------- |  | -------
|
|                                                |                       |  |                        |  |                               |  |                  |  |        
|Revenue                                         | $ 115.8               |  | $ 49.1                 |  | $ 28.9                        |  | $               |  | $ 193.8
|Depreciation of buildings and
        equipment | 9.8                   |  | 2.8                    |  | 0.5                           |  |                 |  | 13.1   
|Recovery on sale of foundry
          business  |                      |  |                       |  |                              |  | (2.5)            |  | (2.5)  
|Stock compensation recovery                     |                      |  |                       |  |                              |  | (1.4)            |  | (1.4)  
|Segments operating loss                        | (20.0)                |  | (21.1)                 |  | (4.5)                         |  | 3.9              |  | (41.7) 

|Year EndedMarch 29, 2002                        | NetworkCommunications |  | ConsumerCommunications |  | Ultra Low-PowerCommunications |  | UnallocatedCosts |  | Total  
|----------------------------------------------- | --------------------- |  | ---------------------- |  | ----------------------------- |  | ---------------- |  | -------
|
|                                                |                       |  |                        |  |                               |  |                  |  |        
|Revenue                                         | $ 114.5               |  | $ 72.7                 |  | $ 34.9                        |  | $               |  | $ 222.1
|Depreciation of buildings and
        equipment | 13.6                  |  | 5.9                    |  | 0.3                           |  |                 |  | 19.8   
|Amortizationo f acquired
        intangibles    | 4.4                   |  |                       |  |                              |  |                 |  | 4.4    
|Loss on sale of foundry
        business        |                      |  |                       |  |                              |  | 5.4              |  | 5.4    
|Special charges                                 |                      |  |                       |  |                              |  | 41.1             |  | 41.1   
|Stock compensation expense                      |                      |  |                       |  |                              |  | 8.4              |  | 8.4    
|Segments operating income
          (loss)     | (73.6)                |  | (8.8)                  |  | 8.8                           |  | (54.9)           |  | (128.5)



| |  | 
| |  | 



---





|Zarlink Semiconductor Inc.
SUPPLEMENTARY SCHEDULES 
(in millions of U.S. dollars, U.S. GAAP) 
(Quarterly data is unaudited)
|---------------------------------------------------------------------------------------------------------------------------



|Other Income (Expense)  Net
|----------------------------

|                                     | Three Months Ended |  | Years Ended 
|------------------------------------ | ------------------ |  | ------------
|                                     | March 28,2003      |  | Dec. 27,2002
|
|                                     |                   
|Interest income                      | $ 0.4              |  | $ 0.7       
|Foreign exchange gain (loss)         | (6.8)              |  | (0.4)       
|Pension plan settlement              | (6.6)              |  |            
|Gain on sale of long-term investment |                   |  | 0.7         
|Impairment of long-term investments  | (11.5)             |  |            
|Equity loss in Optenia, Inc.         |                   |  |            
|Lease settlement with tenant         | 3.7                |  |            
|Other                                | (0.2)              |  |            
|                                     |                   
|Other income (expense)  net         | $ (21.0)           |  | $ 1.0       
|                                     |                   

| |  | 
| |  | 



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