CAMD California Micro Devices Corp. (MM)

New Lines Expected to Become Qualified and Operational During Next Two Quarters MILPITAS, Calif., Jan. 24 /PRNewswire-FirstCall/ -- California Micro Devices (NASDAQ:CAMD) today announced it has completed a joint agreement with SPEL Semiconductor to expand the capacity of SPEL's Leadless Molded Package (LMP) lines and add support for two new additional small profile packages. California Micro Devices will contribute approximately $2.2 million of the total estimated $7.75 million joint investment required for the capacity expansion to support the additional lines. With the growing popularity of thin profile mobile handsets and other small portable devices such as portable media players, MP3 players and digital cameras and camcorders, demand for the company's mobile protection products in small profile, leadless packages has increased dramatically. The agreement with SPEL provides California Micro Devices an important, cost effective expansion of its assembly capacity as it increases its penetration into this growing segment of the mobile protection market. The two new lines will provide assembly capacity for the company's products utilizing TLMP and uTLMP packages. "SPEL's technology and manufacturing capabilities are complementary with our strategy to package our mobile handset protection products in the smallest footprints and lowest profiles," said Robert V. Dickinson, CMD president and CEO. "We look forward to expanding upon our relationship with SPEL as we collaborate to bring up the new LMP lines this year." About SPEL Semiconductor Limited SPEL Semiconductor Limited is the leading one-stop turnkey Wafer Sort, IC Assembly & Test subcontractor facility in India. Established in 1988 and headquartered in Chennai, SPEL had been serving the local market from 1988 to 1994. Having established a track record at home, SPEL turned its attention to the more demanding global market in 1995. It has since been serving the Silicon Valley and other parts of the world for over 10 years now. For further information, visit http://www.spel.com/. About California Micro Devices Corporation California Micro Devices Corporation is a leading supplier of application specific analog and mixed signal semiconductor products for the mobile handset, digital consumer electronics and personal computer markets. Key products include protection devices for mobile handsets, digital consumer electronics products such as digital TVs and personal computers as well as analog and mixed signal ICs for mobile handset displays. Detailed corporate and product information may be accessed at http://www.cmd.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 the cost of the SPEL capacity expansion will be approximately $7.75 million; that the Company will increase the penetration of its mobile protection devices in the markets for thin profile mobile handsets and other small portable devices; that SPEL will successfully complete its two assembly lines and they will be qualified and operational during the next two quarters; that SPEL will be a cost-effective producer of TLMP and uTLMP packages; and the Company's strategy to package its mobile handset protection products in the smallest footprints and lowest profiles. 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 whether SPEL's LMP assembly lines will involve more expensive equipment than estimated or will incur other cost over-runs to construct; whether the designed performance of our mobile protection devices satisfies our customers' requirements so that they continue to design our devices into their products; whether our devices perform to their design specification; whether competitors introduce devices at lower prices than our devices causing us to lose market share; whether SPEL runs into labor, government approval, or financing difficulties that delay or prevent completion of its assembly lines; whether SPEL encounters unexpected costs or expenses or technical difficulties so that it is not a cost-effective package producer; and whether we encounter design issues or SPEL encounters technical issues in packaging our products in small footprints and lowest profiles 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. DATASOURCE: California Micro Devices Corporation CONTACT: Kevin Berry, Chief Financial Officer of California Micro Devices, +1-408-934-3144, or Web site: http://www.calmicro.com/ http://www.spel.com/

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