March 7, 2006 – LSI Logic Corp. is reorganizing its business to focus on storage and consumer technologies, and will drop work on its RapidChip ASIC development and sell its digital-signal processor (DSP) business. LSI is also canceling its previously postponed plans for an IPO for its storage systems subsidiary, Engenio Information Technologies Inc.

“By focusing our resources on fewer markets, where our deep insight and unique silicon-to-systems capabilities can be fully leveraged, we anticipate delivering greater value to customers,” stated LSI Logic president and CEO Abhi Talwalkar.

Ongoing investments for LSI’s RapidChip platform ASIC technology will be redirected into new R&D, although designs currently in production or under development will not be affected. The company also plans to sell off its ZSP DSP unit, which licenses ASIC technology for broadband and wireless communications, but gave no timeline or possible purchase price.

“RapidChip technology targets a broad-based set of requirements across a wide range of industry segments and applications, while our DSP technology has been primarily deployed in areas outside of our focus markets,” said Jeff Richardson, EVP for LSI Logic’s custom solutions group. “Further pursuit of broad-based ASIC opportunities in non-focus areas is inconsistent with our strategy. Going forward, our custom silicon resources will be concentrated to serve customers more fully within our chosen markets.”