Dec. 17, 2001 – Newport Beach, CA – Conexant Systems, Inc. a semiconductor system solutions provider for communications applications, has taken the next step in its strategic evolution toward the creation of three independent, publicly traded companies focused on growth opportunities in the mobile communications, broadband access and Internet infrastructure markets.
“Conexant began life as a publicly traded company three years ago,” said Dwight W. Decker, Conexant chairman and chief executive officer. “At that time, we were a broad-based supplier of semiconductor solutions for all important communications applications. As an independent public company, we recognized the value of focus, and we organized our efforts and investments around successful execution in three distinct growth markets — mobile communications, broadband access and Internet infrastructure. In September 2000, we took the first step to structure our business in alignment with this market-focused strategy by announcing our plan to separate our Internet infrastructure business in order to sharpen its unique customer focus, enhance its competitive position, and realize its full growth potential.
“Today we launch the next step in our strategy by announcing the separation of our mobile communications and broadband access businesses,” Decker continued. “We are convinced that these three planned pure-play semiconductor companies, focused on delivering integrated solutions for mobile communications, broadband access and Internet infrastructure applications, will address the highest growth opportunities and provide Conexant shareowners, employees and customers with the greatest value over time.”
In a separate announcement today, Conexant provided details on a definitive agreement under which it will merge its wireless business with Alpha Industries, Inc. to create the pure-play world leader in radio frequency (RF) and complete semiconductor system solutions for mobile communications applications. When this mobile communications transaction is complete, which is expected in the second calendar quarter of 2002, the new Conexant will consist of a broadband access business and an Internet infrastructure business.
Conexant intends to separate its Internet infrastructure business, Mindspeed Technologies(TM), into an independent, publicly traded company as soon as business and market conditions permit. When this second transaction is complete, the new Conexant will focus its efforts exclusively on broadband access applications. At that time, continuing Conexant shareowners will hold ownership positions in three independent, publicly traded companies.