HUNTINGTON, N.Y. December 11, 2000 -- Telephonics Corp., a wholly owned subsidiary of the Griffon Corporation (NYSE: GFF), announced today that its integrated circuit ("IC") design subsidiary, TLSI, received a contract award from Knowles Electronics to design and develop a high performance amplifier to be incorporated in miniature microphones manufactured by Knowles for use in telephone handsets and automotive applications. TLSI is a broad-based, mixed signal fabless semiconductor manufacturer providing silicon IC solutions for a wide range of applications. Knowles Electronics is one of the world’s leading manufactures of subminiature microphones.

Previously, telephones used larger and more expensive solutions to achieve precision audio amplification. The unique, synergistic combination of TLSI’s silicon capabilities coupled with Knowles’ microphone expertise, will enable telephone manufacturers to improve performance and reliability while simultaneously reducing cost. TLSI’s miniature silicon amplifier will be produced on a proven low-noise CMOS process technology that the company is using for other wireless applications. In addition to improving audio clarity, the microphone will enable telephone manufacturers to produce smaller and more reliable telephones at lower cost.

"This new IC will significantly advance the state-of-the-art in miniature microphone technology, and thereby enable it to be used in new and expanding telecommunication applications," explained Barry Eckstein, TLSI’s President. "By developing a superior product that provides enhanced telephone communications, TLSI is positioning itself as a leading-edge innovator for the wireless telecommunications industry."

With the addition of this integrated circuit into its product family, TLSI expects a significant increase in revenue. It is currently anticipated that initial shipments will commence in the latter part of 2001 with annual sales estimated to grow to in excess of $20 million in 2003. Winning this significant program was the result of TLSI’s long-standing relationship with Knowles, one of the world’s premier producers of miniature microphone electronics.

Although the initial application will be primarily for telephone handsets, this product can be applied to laptops, PCs and automobiles, which are beginning to incorporate audio technology into their products. Other applications for the miniature microphones may be available in the future as voice activated products continue to become more prevalent in the marketplace.

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