AMI Semiconductor to consolidate its European fabs

August 22, 2005 – AMI Semiconductor Inc. has announced its intention to consolidate its European wafer fabrication operations to enhance operating efficiencies. The company intends to close its 4-inch wafer fabrication facility in Oudenaarde, Belgium, and consolidate operations into its existing 6-inch wafer fab, also located in Oudenaarde. The consolidation and closure of the 4-inch facility is expected to be completed by 1Q07.

“We are taking these actions at our European facilities as part of our ongoing drive to consolidate operations and enhance efficiencies,” said Christine King, president and CEO. “These actions along with our previously announced, on-schedule wafer sort consolidation efforts into our Manila, Philippines facility, are examples of our ongoing commitment to improving efficiencies.”

AMI anticipates these actions, when fully implemented, will result in net pre-tax cost savings of approximately $1.0 million to $1.5 million per quarter, starting in the first quarter of 2007. The total pre-tax restructuring charge for these actions is expected to be in the range of $20.0 million to $25.0 million, which will be predominately cash.

Restructuring charges to be incurred in the 3Q05 will depend on the nature and timing of an agreement with the local workers’ council. The remaining charges are expected to be taken on a quarterly basis through the 1Q07, as incurred.


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