SAN JOSE, CALIFORNIA, - (May 4, 2001)

Micrel, Incorporated (NASDAQ: MCRL) today announced that it has reached an agreement to acquire Kendin Communications Inc. Kendin is a fabless semiconductor company that designs, develops and markets high performance integrated circuits for the communications and networking markets. Kendin has developed industry-leading mixed-signal technology, which it is applying to the Fast Ethernet, Gigabit Ethernet and 10 Gigabit Ethernet physical layer and switching chip markets. Kendin Communications’ patented algorithmic signal processing architecture offers numerous advantages over DSP-based design including lower power consumption, reduced die size and greater integration.

In connection with the acquisition, Micrel will issue approximately 6.2 million shares of its common stock and options in exchange for all outstanding Kendin securities and options to purchase Kendin securities. Based on the closing price of Micrel, Inc. stock on May 3, 2001, the implied transaction value is approximately $215 million. The transaction is expected to be completed in the quarter ending June 30, 2001, subject to customary regulatory approvals, and is intended to be accounted for as a pooling-of-interests.

The transaction is expected to be modestly accretive to Micrel’s earnings per share beginning in the third calendar quarter of 2001. Micrel expects to record one-time acquisition-related charges in the June 30, 2001 quarter of between $8 million to $10 million.

"The acquisition of Kendin creates additional growth opportunities for Micrel and accelerates our new product momentum in the communications marketplace," said Ray Zinn, President and Chief Executive Officer of Micrel. "The integrated PHY, MAC and switch products in production and under development at Kendin Communications are a perfect complement to Micrel’s existing product offerings, especially with regard to our high-speed logic products for use in Ethernet and Gigabit Ethernet applications. The design and engineering team at Kendin is top-notch, and we believe that the cultures of the two companies are closely aligned with regard to design innovation and operational efficiency."

"We are very excited to join forces with Micrel," said Dr. Tian Liou, founder and Chief Executive Officer of Kendin. "Not only is Micrel a very high caliber company, but our two organizations also share a common vision and commitment to delivering high-performance analog and mixed-signal communications solutions that provide true value to our customers. This synergistic combination of our two Silicon Valley-based companies creates exciting opportunities for our engineers to create high performance ICs and leverage the Micrel sales and operations organizations to further penetrate our markets. This is a highly strategic step for both of our companies."

Kendin, founded in 1995, is based in Sunnyvale, California. The company has 72 employees, including approximately 40 engineers. Kendin generated revenues of $24 million in 2000 and approximately $10 million in the first quarter of 2001.

Telephone Conference Call

The company will host a conference call at 5:30 AM PST (8:30 AM EST) Monday, May 7, 2001. Chief Executive Officer of Micrel, Raymond Zinn; Chief Executive Officer of Kendin, Dr. Tian Liou; and Chief Financial Officer of Micrel, Richard Crowley, will discuss the acquisition and then respond to questions from the financial community. The call is available to any interested party on a listen only basis by dialing (703) 871-3022 at least 10 minutes before the scheduled start time, and by asking to be connected to the Micrel conference call. A recorded replay will be available until May 15, 2001. The replay will be available by dialing (703) 925-2435. Pass code 5216011. A replay of the conference call will also be available on Micrel’s website, www.micrel.com.

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Except for the historical information presented, certain matters discussed in this press release are forward looking statements under the Private Securities Reform Act of 1995 and are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Forward looking statements in this release include statements regarding the numerous advantages over DSP-based design that are offered by Kendin’s patented algorithmic signal processing architecture; the expectation that the transaction will be accretive to Micrel’s earnings; the expectation that the acquisition will be completed in the June 30, 2001 quarter; the expectation to account for the transaction as a pooling-of-interests; Micrel’s expectations regarding one-time acquisition charges; the acquisition of Kendin creating additional growth opportunities for Micrel and accelerating Micrel’s new product momentum in the communications marketplace; Kendin’s products being a perfect compliment to Micrel’s existing product offerings, especially with regard to Micrel’s high-speed logic products; the belief that the cultures of Micrel and Kendin are closely aligned with regard to design innovation and operational efficiency; the creation of exciting opportunities for Micrel and Kendin through the synergistic combination of Micrel and Kendin; the ability of Kendin engineers to create high performance ICs and leverage Micrel sales and operations organizations to further penetrate markets. Factors that could cause actual results to differ materially include risks and uncertainties such as the failure of Kendin’s technology to complement and/or broaden Micrel’s current technologies, the ability of the combined company to create anticipated synergies and increased product sales as a result of the acquisition, possible difficulties in combining the operating plans and cultures of Micrel and Kendin, continued softness in demand for Micrel and Kendin products, a continuation of customer decisions to cancel, reschedule or delay orders for Micrel and Kendin products; economic or financial difficulties experienced by Micrel and Kendin customers; and the effect of business conditions in the computer, telecommunications and industrial markets. For further discussion of these risks and uncertainties, we refer you to the documents Micrel files with the SEC from time to time, including Micrel’s Annual Report on Form 10-K for the year ended December 31, 2000. Copies of Micrel’s public disclosure filings with the SEC are available from its investor relations department. All forward-looking statements are made as of the date of this press release, and Micrel disclaims any duty to update such statements.

About Micrel, Incorporated

Micrel is a leading manufacturer of advanced high-performance analog, mixed-signal and digital ICs. These products include low drop-out and switching voltage regulators, PCMCIA and USB power controllers, high speed communications interfaces, operational amplifiers, comparators, voltage references, power drivers, RF devices, high speed logic and clock management ICs. Applications for these products include palm, notebook and desktop computers, computer peripherals, cellular phones, high speed communications systems, fiber optic communications modules, automatic test equipment, consumer electronics, industrial and process control products and avionics systems.

For further information, contact Richard Crowley at Micrel, Incorporated, 1849 Fortune Drive, San Jose, California 95131, (408) 944-0800 or visit our Website at www.micrel.com