As a result of record rainfall in June and July and the breach of the nearby River Ray, Zarlink’s Analog Foundry in Swindon, UK was flooded on July 20, 2007. All personnel were safely evacuated and a complete services shutdown was required. Environmental checks were made and all site discharges were monitored with no spills, leakages or discharges recorded. Zarlink is currently working with local authorities to restore power, and foundry operations are expected to fully resume over the next several weeks. Zarlink Analog Foundry customers impacted by this shutdown will be notified. Zarlink carries insurance for the loss of physical plant and business interruption. Foundry revenues are less than 10% of Company revenues. As a result, Zarlink expects minimal impact to Q2, FY2008 earnings.