Global Communication Semiconductors Inc. Announces Strategic Supplier Contract With Celeritek

Business Wire, March 12, 2001

Business Editors/Technology Writers

TORRANCE, Calif.--(BUSINESS WIRE)--March 12, 2001

New Contract Adds Greater Responsiveness to the Wireless Market

and Solidifies Key Outsource Relationship

Global Communication Semiconductors Inc. (GCS Inc.), a pure-play wafer foundry, today announced that it has signed a 3-year contract with Celeritek Inc. (Nasdaq:CLTK).

This contract allows Celeritek greater flexibility in responding to the dynamic wireless telecommunications market, which addresses the CDMA and WCDMA cellular phone standards, by outsourcing a significant percentage of wafer manufacture to GCS.

"We are very pleased with the new commitment that Celeritek has made in GCS and the level of confidence that this demonstrates in our ability to deliver high-quality and cost-effective products," remarked Owen K. Wu, president and chief executive officer of GCS.

"GCS has great respect for the Celeritek organization and its enviable position in the wireless telecommunications industry. We are looking forward to a long and fruitful relationship for the next three years and beyond."

Under this contract, GCS will provide 4-inch GaAs HBT and PHEMT wafers for various Celeritek products which run concurrently in the Celeritek manufacturing line.

"Our stated manufacturing strategy is to outsource a portion of our fabrication work. We have been working closely with GCS for over one year now and have been extremely pleased with their quality of work, ability to match our internal process, cycle time and service," said Perry A. Denning, vice president and general manager of Celeritek's Semiconductor Division.

"It, therefore, was a natural progression to enter into a contractual relationship."

Global Communication Semiconductors, based in Torrance, is an ISO 9002 certified company. GCS provides compound semiconductor foundry services to the wireless telecommunication and high-speed networking industries. It currently offers HBT and PHEMT foundry service for both InGaP and InP processes.

Additionally, GCS is delivering optoelectronic devices such as VCSEL and PIN diodes for fiber communication market and is providing SAW filter foundry service for handset applications.