LSI Logic acquires C-Cube

March 26, 2001- Milpitas, CA – LSI Logic Corp., and C-Cube Microsystems announced a definitive merger agreement in which LSI Logic will acquire C-Cube in a stock-for-stock transaction. Valued at $878 million, LSI Logic will commence an exchange offer that will offer 0.79 of a share of LSI Logic common stock for each outstanding share of C-Cube common stock. Following the exchange, LSI Logic will acquire, at the same exchange ratio, the remaining shares of C-Cube common stock.

With an anticipated completion date of 2Q01, the transaction should be accretive to LSI Logic’s earnings before goodwill amortization (EBG) in 2001. According to the companies, the combination of C-Cube and LSI Logic provides a complete portfolio of technologies for high-growth cable, terrestrial, satellite and DSL set-top box markets.

C-Cube reported $265 million in revenues in 2000, with nearly 600 employees worldwide.

Wilfred Corrigan, LSI Logic chairman and CEO said, “The acquisition of C-Cube will enhance LSI Logic’s technology strengths in designing and manufacturing complete solutions for customers in rapidly growing communications and broadband entertainment markets.”


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