SUNNYVALE, Calif., Sept. 26, 2011 (GLOBE NEWSWIRE) -- Trident
Microsystems, Inc. (Nasdaq:TRID), a leading provider of set-top box and
TV semiconductor solutions, today announced a key step in its
turnaround efforts that will lower its breakeven point through a
realignment of its workforce, from approximately 1,275 employees
worldwide today to approximately 1,000 employees by early 2012.
Headcount will be reduced strategically in all functional areas. As a
result of the reductions in labor and other cost saving initiatives, by
the first quarter of 2012 the company expects to realize annual
operating expense savings of approximately $40 million to $48 million
compared with the annualized run rate as of the second quarter of 2011
and to reduce its EBITDA breakeven level (excluding stock-based
compensation, restructuring and other non-cash charges) to
approximately $340 million to $360 million in annual revenues. The
company expects to incur total cash restructuring charges of
approximately $8 million to $10 million, including approximately $2
million to $3 million in the current quarter ending Sept. 30, 2011.

"We are taking decisive actions to better position Trident for success
as we enter 2012, given the current mass production timing of our new
design wins and the soft economic environment," said Trident's chief
executive officer and president, Dr. Bami Bastani. "Trident has always
had very strong technology and good access to customers, both of which
are translating into new design wins for our latest TV and Set-Top Box
products. By focusing on our core strengths, including connectivity for
Smart TV and Smart Box, and our customer centric engagements with a
select list of leading OEMs, ODMs, and operators, we intend to position
ourselves for stronger financial results and improved returns for our
shareholders."


  Investor Conference Call             
  Date:  Monday, Sept. 26, 2011        
  Time: 1:30 p.m. Pacific Time (4:30   
   p.m. Eastern Time)                  
  Domestic Dial-In:  866.825.1709      
  International Dial-In: 617.213.8060  
  Passcode: 22944875                   



A replay of the conference call will be available for two weeks,
beginning on Sept. 27, 2011 and will be accessible by calling
888-286-8010 (domestic) or +1-617-801-6888 (international) using access
code 17931077.

This call is being webcast by Thomson/CCBN and can be accessed at
Trident's web site at: http://www.tridentmicro.com. The webcast is also
being distributed through the Thomson StreetEvents Network to both
institutional and individual investors. Individual investors can listen
to the call at www.fulldisclosure.com, Thomson/CCBN's individual
investor portal, powered by StreetEvents. Institutional investors can
access the call via Thomson's password-protected event management site,
StreetEvents (www.streetevents.com).

About Trident Microsystems, Inc.

Trident Microsystems, Inc., with headquarters in Sunnyvale, California,
is a leading force in the digital home entertainment market, delivering
an extensive range of platform solutions that enhance the consumer
experience in the Connected Home and select Consumer Electronics (CE)
products. As one of the top-three semiconductor providers to both the
TV and set-top box markets, Trident's solutions can be found in the
products of leading OEMs and channel partners worldwide. The company's
extensive IP portfolio has been driving key innovations in image
quality, 3D TV, audio, low power, and 45nm designs. For further
information about Trident and its products, please consult the
Company's web site: www.tridentmicro.com.

Forward-Looking Information

This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, and is subject to the safe harbor
created by those sections. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance and
involve risks and uncertainties, and there are important factors that
could cause Trident's actual results to differ materially from those in
the forward looking statements. These risks include Trident's ability
to implement the workforce reductions in various geographies, possible
changes in the size and components of the expected costs and charges
associated with the restructuring plan, Trident's ability to reduce
costs on a timely basis, Trident's ability to reduce expenses to a
sustainable level when future revenues are uncertain, and Trident's
ability to obtain design wins and realize revenue from such wins. The
forward-looking statements included in this press release are made only
as of the date of this press release; Trident does not undertake any
obligation to publicly revise or update any such forward-looking
statement to reflect events or circumstances that may arise after the
statement was made. Investors are cautioned not to place undue reliance
on forward-looking statements. Additional information concerning
factors that could cause results to differ can be found in the
Company's filings with the Securities and Exchange Commission,
including the Company's most recently filed Reports on Form 8-K, Form
10-K and Form 10-Q, which are available at http://www.sec.gov.

Non-GAAP Financial Information

Trident Microsystems, Inc. reports its financial results in accordance
with generally accepted accounting principles (GAAP). To provide
management and investors with additional insight into its operations,
the trends affecting the company and marketplace performance, the
company also supplements this information with non-GAAP information
that excludes certain costs, expenses and gains. Non-GAAP net income
(loss), non-GAAP gross margin, non-GAAP EBITDA and non-GAAP expenses
give an indication of the company's baseline performance before gains,
losses or other charges that are considered by management to be outside
the company's core operating results. In addition, these non-GAAP
measures as a percentage of net revenues are used to identify key
trends in performance and measure key results against objectives. These
non-GAAP measures are among the primary indicators management uses as a
basis for planning and forecasting future periods. These measures are
not in accordance with, or an alternative for, GAAP and may be
materially different from non-GAAP measures used by other companies.
The company computes non-GAAP net income (loss) by adjusting GAAP net
income (loss) for acquisition-related expenses, stock-based
compensation expense, expenses related to the stock option
investigation and related matters, legal settlements, restructuring
charges, expenses related to software license fees, amortization and
impairment of intangible assets from acquisitions, impairment loss,
backlog amortization, capital gains and losses and dividend income.

NOTE: Trident, Trident logo are either trademarks or registered
trademarks of Trident Microsystems in the United States and /or other
countries. NOTE: Trident and the Trident logo are either registered
trademarks or trademarks of Trident Microsystems, Inc in the United
States and/or other countries. All other names, brands, products or
trademarks may be claimed as the property of their respective owners.


CONTACT: Trident Public and Investor Relations:
         John Swenson
         Trident Microsystems
         408-764-8899
         John.swenson@tridentmicro.com