ARRS Arris International Plc - Ordinary Shares

ARRIS Completes Redemption of 2008 Convertible Notes Company Becomes Completely Debt Free SUWANEE, Ga., June 29 /PRNewswire-FirstCall/ -- ARRIS (NASDAQ:ARRS), a global telecommunications technology leader, announced today that it had completed the redemption of the remaining outstanding $75 million principle amount of its 4-1/2% Convertible Subordinated Notes due 2008. The Notes were originally issued on March 18, 2003. As explained in the company's May 31, 2005 press release, holders of the Notes had until the close of business on June 28, 2005 to convert the Notes into shares of ARRIS common stock at a price of $5.00 per share (200 shares per $1,000 principle amount of the Notes). The Company noted that 100% of the Note holders elected to convert their Notes into stock resulting in the issuance of 15 million new shares of stock and the elimination of the ongoing interest expense related to the Notes of approximately $1 million per quarter. In addition to the redemption of the Notes, ARRIS will also make an interest "make whole" payment to Note holders in shares of its common stock of approximately $2.4 million which will be recorded as an expense in the second quarter of 2005. As a result of the 15 million shares and the approximately 284 thousand shares related to the "make whole" payment, going forward, the new number of total shares outstanding will be approximately 103.5 million shares on a non-diluted basis. "We are extremely proud of our financial accomplishments and strong market performance over the past several years," said David Potts, ARRIS EVP & CFO. "With the completion today of the redemption of our outstanding Notes, ARRIS becomes completely debt free and, coupled with our current cash position and new product offerings, is very well positioned for the future." ARRIS provides broadband local access networks with innovative next generation high-speed data and telephony systems for the delivery of voice, video and data to the home and business. ARRIS' complete solutions enhance the reliability and value of converged services from the network to the subscriber. Headquartered in Suwanee, Georgia, USA, ARRIS has design, engineering, distribution, service and sales office locations throughout the world. Information about ARRIS' products and services can be found at http://www.arrisi.com/. DATASOURCE: ARRIS CONTACT: Jim Bauer, Investor Relations of ARRIS, +1-678-473-2647, or Web site: http://www.arrisi.com/

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