Aug. 1, 2002 — MEMSCAP Inc. said it plans to acquire JDS Uniphase Corp.’s MEMS business unit in a stock deal worth at least $10 million.

France-based MEMSCAP, which offers MEMS products and services for telecommunications, biotechnology and other sectors, said it will issue 10.5 million shares to JDSU at closing, and possibly 6.5 million more over a 2 ½ year period. The acquisition, scheduled to close within 60 days, is subject to approvals by MEMSCAP shareholders and stock market regulatory authorities, as well as an independent French appraiser.

MEMSCAP officials said the unit, which makes MEMS devices for optical networks, gives them a heavy North American presence. JDSU has committed to buy products and services from MEMSCAP, and the deal provides the French firm several active contracts and customers.

JDSU’s MEMS unit, formerly Cronos Integrated Microsystems, was acquired by JDSU in 2000 from MCNC, a North Carolina research center that created it.

The unit has 80 employees, at least half of whom are expected to be laid off in the acquisition, said Jesko von Windheim, vice president and general manager of JDSU’s MEMS operation.

“If you’re looking at it from the perspective of people being laid off, of course that’s difficult, but the business entity continues to flourish,” he said. “A lot of our peers are shutting down, but there’s still value in this business unit.”