Santa Clara, California (November 8, 2006) – arvell Technology Group, Ltd. (NASDAQ: MRVL), the leader in storage, communications and consumer silicon solutions, today announced that it has completed the acquisition of Intel’s cellular and applications processor business. On June 27, 2006, Marvell announced that it agreed to purchase Intel’s cellular communications and applications processor business for $600 million plus the assumption by Marvell of certain liabilities. Along with this purchase, Marvell also acquires a patent portfolio covering cellular and application processor technologies. This purchase will give Marvell a strong presence in the growing market segment for cellular baseband and applications processors used in cellular and smart handheld devices.
“Marvell’s mission is to be a long-term, leading supplier in the cellphone and consumer electronics markets”, said Dr. Sehat Sutardja, Marvell’s chairman, president and CEO. “By adding cellular baseband and applications processors to our broad, diverse product portfolio we continue to expand the reach of Marvell technology into an increasing number of consumer devices and end markets.”
In connection with the acquisition, Marvell made a cash payment of $600 million for the purchase price. Marvell also completed its previously announced senior term loan facility in an aggregate principal amount of $400 million which was used together with existing cash on hand to pay the purchase price for the acquisition. Marvell may record a one-time charge for purchased in-process research and development expenses during the fourth quarter of fiscal 2007. The amount of that charge, if any, has not yet been determined.
With this acquisition, Marvell will design and market a family of processors (codenamed Monahans) for wireless and embedded applications. These products are based on the third generation of Intel Xscale® technology. This family of processors, which is starting to ship in volume, offers a wide range of performance, power and integration levels to meet the needs of feature handsets, smartphones, handhelds and consumer electronic devices. The Monahans family will deliver improved performance and extended battery life, enabling advanced applications that offer end-users a richer experience, less power, and multitasking ability to increase both user satisfaction and overall usage. Marvell continues to increase its investment in development of highly integrated CPU families, like ‘Feroceon’ and ‘Monahans’, that push the limits of MIPS/mw capabilities of next generation mobile devices.
Marvell (NASDAQ: MRVL) is the leader in development of storage, communications, and consumer silicon solutions. The company’s diverse product portfolio includes switching, transceiver, communications controller, wireless and storage solutions that power the entire communications infrastructure including enterprise, metro, home and storage networking. As used in this release, the terms “company” and “Marvell” refer to Marvell Technology Group Ltd. And its subsidiaries, including Marvell Semiconductor Inc. (MSI), Marvell Asia Pte Ltd (MAPL), Marvell Japan K.K., Marvell Taiwan Ltd., Marvell International Ltd. (MIL), Marvell U.K. limited, Marvell Semiconductor Israel Ltd. (MSIL), RADLAN Computer Communications Ltd., and Marvell Semiconductor Germany GmbH. MSI is headquartered in Santa Clara, California and designs, develops and markets products on behalf of MIL and MAPL. MSI may be contacted at (408) 222-2500 or at www.marvell.com.
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