Beverly, Mass. – July 27, 2001 – Clare, Inc., a global leader in the design and manufacture of high-voltage integrated circuits, today announced it has entered into agreement with Analog Devices, Inc. to develop high-voltage integrated circuit technology for its Optical iMEMS® (integrated Micro Electro Mechanical Systems) product line used in fiberoptic networking applications.

Under the terms of the agreement, Clare and Analog Devices will jointly develop a new process to integrate optimized high-voltage devices with CMOS logic and MEMS structures using Clare's proprietary SOI based high-voltage integrated circuit technology. Clare, Inc. is a leader in the design and manufacture of high-voltage integrated circuits and Analog Devices is the leading supplier of integrated MEMS devices such as its family of iMEMS accelerometers. The project is expected to last two years.

"Clare's expertise in high-voltage design and processing makes them the ideal choice," said Franklin Weigold, Vice President and General Manager of Analog Devices' Micromachined Products Division. "Their unique SOI process is very complimentary with our optical iMEMS processes."

"This partnership with an industry leader such as Analog Devices represents a significant opportunity for Clare to enhance our process technology and gain entry into new markets," said Larry Mihalchik, President and CEO of Clare, Inc.

About Clare
Clare, Inc. designs, manufactures and markets high-voltage integrated circuits (ICs), optically isolated solid state relays (OptoMOS®), mixed-signal custom ASICs and ASSP ICs, such as flat panel OLED display drivers, for the telecommunications market. Clare's products ensure reliable connectivity throughout the global public telecommunications network. The Company's deep heritage in analog/mixed-signal and high-voltage designs enables us to pioneer highly integrated semiconductor solutions that both replace magnetics and enhance performance in wireline interface applications. Additional information about Clare can be found at www.clare.com.

About ADI's Leadership in MEMS Technology
As a pioneer in the micromachined IC industry, Analog Devices shipped the first fully-integrated, single chip accelerometers in 1991. Since then, ADI has maintained its leadership position and remains the industry's only high-volume producer of single-chip MEMS accelerometers. ADI's iMEMS accelerometers are used in a wide range of consumer, industrial and automotive applications. In 2000, Analog Devices acquired BCO Technologies a pioneer in developing and manufacturing bonded wafers based on single-crystal SOI technology (silicon on insulator) that are used for fabricating silicon-based MEMS optical switches. ADI recently acquired Integrated Micro-Instruments (IMI) of Berkeley, CA further extending ADI's integrated MEMS design expertise and establishing a West Coast MEMS design center. Analog Devices now leverages over ten years of MEMS experience by integrating advanced signal processing circuits to the optical MEMS structures, thereby adding significant functionality to the devices.

About Analog Devices
With revenues of $772 million for the first quarter of fiscal 2001, Analog Devices is a leading manufacturer of precision high-performance integrated circuits used in analog and digital signal processing applications. The company is headquartered in Norwood, Massachusetts and employs approximately 9,800 people worldwide. It has manufacturing facilities in Massachusetts, California, North Carolina, Ireland, the Philippines, Taiwan and the United Kingdom. Analog Devices' stock is listed on the New York Stock Exchange and the company is included in the S&P 500 Index.

Clare Contact:
Clare, Inc.
info@clare.com

Analog Devices Contact:
Howard Wisniowski
Analog Devices, Inc.
(617) 761-7313
howard.wisniowski@analog.com

iMEMS is a registered trademark of Analog Devices, Inc.
OptoMOS is a registered trademark of Clare, Inc.