Cypress Announces First-Ever Cash Dividend

The Board declared the first quarterly cash dividend of $0.09 per share payable to holders of record of the Company's common stock at the close of business on June 24, 2011. This dividend will be paid on July 21, 2011. The declared dividend will be paid from U.S. domestic sources other than the Company's retained earnings and is expected to be treated as an untaxed return of capital for U.S. tax purposes for the 2011 fiscal year, although the final determination of the tax treatment of the dividend will be made after the Company’s 2011 fiscal year end. The Company will provide direction annually on the potential tax treatment of the dividend for U.S. tax purposes.

Cypress is executing very well on its long-term business model and is delivering increasing value to its stockholders, said Brad Buss, Cypress's executive vice president and chief financial officer. We continue to invest heavily in our main business units, including our family of rapidly growing PSoC® products, and our Emerging Technology Division, and we are enjoying the strongest product cycles in the company’s history. We are pleased to be able to return excess cash to our stockholders through our stock repurchase program and now through the adoption of a dividend policy. We also look forward to adding new stockholders who desire to invest in a growing company with a very competitive dividend.

The dividend policy and the payment of cash dividends under that policy are subject to the Board's continuing determination that the dividend policy and the declaration of dividends are in the best interests of Cypress’s stockholders and are in compliance with all laws and agreements of Cypress applicable to the declaration and payment of cash dividends. The dividend may be changed or cancelled at the Company’s discretion at any time.