CAMD California Micro Devices Corp. (MM)

Acquisition Will Strengthen Analog Product Line for Core Markets MILPITAS, Calif., March 16 /PRNewswire-FirstCall/ -- California Micro Devices (NASDAQ:CAMD) announced today that it has entered into a definitive agreement to acquire privately held Arques Technology, a fabless manufacturer of innovative analog semiconductor devices. The acquisition of the Santa Clara, California firm adds white LED drivers for mobile handsets and DDR memory voltage regulators for digital consumer electronics products to the CMD product portfolio. "The acquisition of Arques Technology marks an important milestone in the evolution of California Micro Devices," said Robert V. Dickinson, president and chief executive officer. "In addition to strengthening our analog design team and our portfolio of active analog devices, it also expands our presence in Asia." Under the terms of the agreement, the acquisition will be a cash transaction consisting of an initial payment of approximately $8.0 million and an earn out based on performance of the Arques product line during the eighteen months after the acquisition is completed. The transaction is expected to close in early April, 2006. Founded in 2001, Arques currently has 25 employees at its Santa Clara headquarters and its Taipei and Beijing locations, most of whom, according to Dickinson, will be offered the opportunity to continue working in their present positions. "We look forward to Arques employees joining our team and playing key roles in driving our company's future growth," he added. Commenting on the acquisition, Gerome Tseng, Arques president and CEO, said, "We have great respect for California Micro Devices and the strong position it has established in the markets we have been targeting. We believe the combination of the two companies will lead to greater success than either would achieve alone." About California Micro Devices Corporation California Micro Devices Corporation is a leading supplier of application specific analog semiconductor products for the mobile handset, personal computer and digital consumer electronics markets. Key products include Application Specific Integrated Passive(TM) (ASIP(TM)) devices and selected high value mixed signal ICs. Detailed corporate and product information may be accessed at http://www.calmicro.com/. All statements contained in this press release that are not historical facts are forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. They are not guarantees of future performance or events. Rather, they are based on current expectations, estimates, beliefs, assumptions, and goals and objectives and are subject to uncertainties that are difficult to predict. As a result, our actual results may differ materially from the statements made. Often such statements can be identified by their use of words such as will, intends, expects, plans, believes, anticipates, and estimates. Forward-looking statements made in this release include that we expect our acquisition of Arques Technology to close in early April and strengthen our analog design team and LED driver portfolio. These forward- looking statements are based upon our assumptions about and assessment of the future, which may or may not prove true, and involve a number of risks and uncertainties including, but not limited to our acquisition of Arques not closing due to a failure of either party to satisfy a closing condition or due to either party breaching our agreement; key members of the Arques analog design teams deciding not to join or to shortly thereafter quit our employment; and the Arques product portfolio not being as robust as we expect when readied for production as well as the risk factors detailed in the company's Form 8K, 10K, and 10Q filings with the Securities and Exchange Commission. Due to these and other risks, the company's future actual results could differ materially from those discussed above. These forward-looking statements speak only as to the date of this release, and, except as required by law, we undertake no obligation to publicly release updates or revisions to these statements whether as a result of new information, future events, or otherwise. NOTE: ASIP(TM) and Application Specific Integrated Passive(TM) are trademarks of California Micro Devices. All other trademarks are property of their respective owners DATASOURCE: California Micro Devices Corporation CONTACT: Robert Dickinson of California Micro Devices, +1-408-934-3144, or Web site: http://www.calmicro.com/

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