ARRS Arris International Plc - Ordinary Shares

ARRIS Discusses Recent Events DULUTH, Ga., Dec. 11 /PRNewswire-FirstCall/ -- ARRIS , a global telecommunications technology leader, today announced that due to the Company's strengthening cash position and balance sheet, the Company has determined that it is terminating its bank credit facility. This action will save approximately $900,000 annually in fees and other costs. The termination will require that the Company write off approximately $2.3 million in non-cash unamortized fees related to the establishment of the facility. The Company noted that it had not used the bank facility for almost two years. In addition, the Company noted that a Wisconsin District Court had recently ruled in favor of Mezzalingua Associates, Inc., d/b/a PPC, Inc. in its previously disclosed patent infringement suit relating to certain models of ARRIS's Digicon "S" series and Digicon "T" Series model connectors. As a result of the decision, the Company will no longer sell these particular connectors. ARRIS is reviewing its options with respect to post trial motions and appeals. The calculation of damages in the suit will be the subject of a future hearing, but because of the recentness of the issuance of the patent, damages are expected to be limited. Sales of the Digicon "S" and "T" connectors accounted for approximately $13 million of annual revenues which the Company believes will be readily replaced by the sale of other products. ARRIS is already moving rapidly to find alternate sources or products to meet its customer's needs. Excluding unusual items, including the above, the Company continues to believe that it will be within previously announced financial guidance for the fourth quarter of 2003. "Although disappointed in the outcome of the proceeding, we believe that the decision will have no material effect on our overall financial results for the current quarter or future periods," said Bob Stanzione, ARRIS Chairman & CEO. "We continue to be very pleased by the growing market acceptance of our new high speed data and VoIP telephony products as our customers use our products to generate new sources of revenue and responses to competition in their markets." 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 Duluth, Georgia, USA, ARRIS has design, engineering, distribution, service and sales office locations throughout the world. Information about ARRIS's products and services is found at http://www.arrisi.com/ . Forward-looking statements: Certain information and statements contained in this press release constitute forward-looking statements with respect to the financial condition, results of operations, and business of ARRIS. Statements that are based on current expectations, estimates, forecasts, and projections about the markets in which the Company operates and management's beliefs and assumptions regarding these markets are forward-looking statements. The Company cautions that any forward-looking statements made are not guarantees of future performance. Statements made in this press release, including those related to: - the impact of the current court decision; - market acceptance of certain replacement products; - the financial results for the current quarter - the results of any future hearings and appeals, and industry conditions are forward-looking statements. These statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. In addition to the factors set forth elsewhere in this release, other factors that could cause results to differ from current expectations include: further determinations by the court in the litigation and ARRIS's ability to supply an alternate product; the impact of rapidly changing technologies; the impact of competition on product development and pricing; the ability of ARRIS to react to changes in general industry and market conditions including regulatory developments; rights to intellectual property, market trends and the adoption of industry standards; and consolidations within the telecommunications industry of both the customer and supplier base. These factors are not intended to be an all-encompassing list of risks and uncertainties that may affect the Company's business. Additional information regarding these and other factors can be found in ARRIS's reports filed with the Securities and Exchange Commission. In providing forward-looking statements, the Company expressly disclaims any obligation to update these statements, whether as a result of new information, future events or otherwise. DATASOURCE: ARRIS CONTACT: Jim Bauer, Investor Relations of ARRIS, +1-678-473-2647, or Web site: http://www.arrisi.com/

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