CNXTD Conexant Systems (MM)

Conexant Systems, Inc. (NASDAQ: CNXTD) today announced that it signed a definitive agreement with Freescale Semiconductor to acquire its �SigmaTel� multi-function printer (MFP) imaging product lines. The single-chip solutions were developed by SigmaTel, Inc., which was a leading provider of broad-based MFP imaging solutions prior to its acquisition by Freescale. Multi-function printers feature copy, fax, and scan capabilities. When the transaction is completed, Conexant will be a leading provider of semiconductor solutions for MFP and facsimile imaging applications. The transaction is subject to customary closing conditions, and is expected to close within the next 30 days. Terms of the agreement were not disclosed. �When we complete the acquisition of Freescale�s SigmaTel MFP imaging product lines, Conexant will be a leading supplier of innovative solutions to the high-growth MFP market segment,� said Bernd Lienhard, senior vice president and general manager of Conexant�s Imaging and PC Media business. �We will also strengthen our imaging product and technology portfolio, and broaden our customer base. In addition, we gain a dedicated and experienced design team that will enable us to accelerate the introduction of advanced imaging solutions.� More than 50 Freescale employees, primarily based in Waltham, Massachusetts, are expected to join Conexant�s Imaging and PC Media (IPM) group when the transaction closes. The design team has extensive expertise in printer and imaging technologies, and has developed and delivered solutions with industry-leading processing speeds to major printer manufacturers worldwide. According to industry estimates, shipments of MFPs are expected to increase from approximately 73 million units in 2007 to more than 115 million units in 2011, an increase of nearly 60 percent. Conexant will also acquire Freescale�s SigmaTel digital photo frame product lines, which allow users to view and share photos from traditional digital cameras, camera phones, and photo-sharing Web sites on high-resolution LCD displays. SigmaTel�s multimedia applications processor technology will be excluded from the acquisition. Conexant is currently the No.1 provider of semiconductor solutions for facsimile applications. When the transaction is completed, the company�s comprehensive imaging product offering will include fax system-on-chip (SoC) and datapump solutions, highly integrated MFP SoCs for inkjet, laser, and photo printers, and high-performance system solutions for digital photo frames. About Conexant Conexant�s comprehensive portfolio of innovative semiconductor solutions includes products for Internet connectivity, digital imaging, and media processing applications. Conexant is a fabless semiconductor company that recorded revenues of $809 million in fiscal year 2007. The company is headquartered in Newport Beach, Calif. To learn more, please visit www.conexant.com. Safe Harbor Statement �Safe Harbor� Statement under the Private Securities Litigation Reform Act of 1995: This release includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by phrases such as Conexant or its management �believes,� �expects,� �anticipates,� �foresees,� �forecasts,� �estimates� or other words or phrases of similar import. Similarly, statements in this release that describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties include, but are not limited to: pricing pressures and other competitive factors; our ability to timely develop and implement new technologies and to obtain protection for the related intellectual property; the cyclical nature of the semiconductor industry and the markets addressed by our products and our customers� products; volatility in the technology sector and the semiconductor industry; our successful development of new products; the timing of our new product introductions and our product quality; demand for and market acceptance of our new and existing products; our ability to anticipate trends and develop products for which there will be market demand; the availability of manufacturing capacity; changes in our product mix; product obsolescence; the ability of our customers to manage inventory; the risk that capital needed for our business and to repay our indebtedness will not be available when needed; the risk that the value of our common stock may be adversely affected by market volatility; the substantial losses we have incurred; the uncertainties of litigation, including claims of infringement of third-party intellectual property rights or demands that we license third-party technology, and the demands it may place on the time and attention of our management and the expense it may place on our company; general economic and political conditions and conditions in the markets we address; and possible disruptions in commerce related to terrorist activity or armed conflict, as well as other risks and uncertainties, including those detailed from time to time in our Securities and Exchange Commission filings. The forward-looking statements are made only as of the date hereof. We undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Conexant is a registered trademark of Conexant Systems, Inc. Other brands and names contained in this release are the property of their respective owners.