(December 1, 2010 – GLOBE NEWSWIRE) — Alpha and Omega Semiconductor Limited, or AOS (Nasdaq:AOSL), a designer, developer and global supplier of a broad range of power semiconductors, today announced that it has entered into definitive share purchase agreements for the acquisition of all of the outstanding shares of Agape Package Manufacturing Ltd., or APM, that are not already owned by AOS. APM is a provider of semiconductor packaging and testing services. The consideration for the acquisition is approximately $38 million, comprising of approximately $17 million in cash and 1.8 million AOS’s common shares.

Prior to this acquisition, AOS held 43% equity stake in APM, which was accounted for under the equity method of accounting. Upon closing of this acquisition, APM will become a wholly-owned subsidiary of AOS and its financial results will be fully consolidated in the financial statements of AOS.

AOS currently accounts for approximately 75% of APM’s production output. AOS do not anticipate any substantive change after this acquisition, and APM will continue to provide capacity and services to APM’s existing customers without interruption.

"This acquisition represents a successful execution of our long-term strategy to expand manufacturing capacity as our business grows. We believe that this will have a positive impact on our gross margin and profitability," said Dr. Mike Chang, CEO and chairman of AOS. "We expect a smooth transition and integration after the acquisition since we already have an excellent working relationship with APM."

The transaction has been approved by the board of directors. The transaction is subject to customary closing conditions and expected to be closed in early December 2010.

Alpha and Omega Semiconductor Limited, or AOS, is a designer, developer and global supplier of a broad range of power semiconductors, including a wide portfolio of Power MOSFET and Power IC products. For more information, visit www.aosmd.com.