IT Mergers & Acquisitions

Marvell Technology Group, Ltd., the leader in storage, communications and consumer silicon solutions, today announced that it has completed the acquisition of Intel’s cellular and applications processor business. On June 27, 2006, Marvell announced that it agreed to purchase it for $600 million plus the assumption by Marvell of certain liabilities. With this acquisition, Marvell will design and market a family of processors (codenamed Monahans) for wireless and embedded applications.

In connection with the acquisition, Marvell made a cash payment of $600 million for the purchase price. Marvell also completed its previously announced senior term loan facility in an aggregate principal amount of $400 million which was used together with existing cash on hand to pay the purchase price for the acquisition. Marvell may record a one-time charge for purchased in-process research and development expenses during the fourth quarter of fiscal 2007. The amount of that charge, if any, has not yet been determined.

Monahans processors are based on the third generation of Intel Xscale technology. This family of processors, which is starting to ship in volume, offers a wide range of performance, power and integration levels to meet the needs of feature handsets, smartphones, handhelds and consumer electronic devices. The Monahans family will deliver improved performance and extended battery life, enabling advanced applications that offer end-users a richer experience, less power, and multitasking ability to increase both user satisfaction and overall usage. Marvell continues to increase its investment in development of highly integrated CPU families, like Feroceon and Monahans, that push the limits of MIPS/mw capabilities of next generation mobile devices.