Jazz Technologies, Inc. Announces Securities Repurchases Intended To Simplify Capital Structure and Reduce Debt

Business Wire, Sept 6, 2007

NEWPORT BEACH, Calif. -- Jazz Technologies (Amex:JAZ) today announced several recent repurchases of securities, both in the open market and in privately negotiated transactions, as part of Jazz's continuing effort to simplify its capital structure and reduce its cost of capital. The recent repurchases reduce the number of outstanding common shares, warrants, options and convertible securities that are dilutive or potentially dilutive to common stockholders, and reduce the company's debt obligations. These actions include the following, among others:

* Between August 13 and September 4, 2007, Jazz repurchased $20,550,000 in original principal amount of its 8% convertible senior notes issued in December 2006 at a total purchase price of $17,233,125. The purchase price Jazz paid for these convertible senior notes ranged between 79.75% and 87.50% of the principal amount of such notes. After these repurchases, approximately $146.2 million in principal amount of convertible senior notes remains outstanding.

* On August 17, 2007, Jazz repurchased from Conexant Systems, Inc. at that day's closing price of $2.43 per share, 1.71 million shares of Jazz's common stock at a total purchase price of $4,155,300.

* In June and September of 2007, Jazz repurchased for a total purchase price of $2,360,000 all 1,250,000 unit purchase options issued to the underwriters of Jazz's initial public offering, leaving no unit purchase options outstanding. This takes into account the repurchase, on September 6, 2007, of 812,500 unit purchase options at $2.00 each, including 375,000 unit purchase options from CRT Capital Group and CRT Associates, 250,000 unit purchase options from Paul A. Pittman, Jazz's Executive Vice President and Chief Financial and Administrative Officer, and 187,500 unit purchase options from Wedbush Morgan Securities. Mr. Pittman acquired his unit purchase options as a result of his former position as a partner at ThinkEquity Partners LLC, one of the underwriters of Jazz's initial public offering.

* Jazz repurchased on September 4, 2007, 208,333 units at $3.90 per unit and 62,920 shares of common stock at $2.98 per share from Acquicor Management LLC, an entity owned in part and controlled by Gilbert F. Amelio, Jazz's Chairman and Chief Executive Officer. The price paid by Jazz for these securities was at a slight discount to the most recent closing price prior to the repurchase. The repurchase from Acquicor Management LLC was conditioned on the entire $1,000,000 sales proceeds being applied by Acquicor Management LLC to pay interest, principal and associated fees on loans made to Acquicor Management LLC on February 14, 2007 by Context Opportunistic Master Fund, LP and Context Advantage Master Fund, LP. Acquicor Management LLC used these loans in February of 2007 to fund the purchase of Jazz common stock shortly before Jazz's acquisition of Jazz Semiconductor.

Senior management and directors of Jazz, including Gilbert Amelio, Paul Pittman, Allen Grogan, Liad Meidar, Harold Clark, Jon Madonna and John Kensey remain significant shareholders and, as of September 6, 2007, beneficially own in the aggregate approximately 23.3% of Jazz's outstanding common stock.

Jazz has spent approximately $43.9 million to date under its previously announced stock and warrant repurchase program that is currently scheduled to expire on October 15, 2007, including repurchases made in the open market as well as the privately negotiated repurchases (but not including the repurchases of its convertible senior notes described above). All the repurchases were made using cash on the balance sheet. As of September 6, 2007, Jazz had repurchased 5,601,306 shares of common stock, 25,133,655 warrants, and 1,250,000 unit purchase options under this program. As of September 6, 2007, the number of outstanding shares of Jazz's common stock (JAZ) was 21,313,912 and the number of outstanding warrants (JAZ-WS) was 33,033,013.

About Jazz Technologies and Jazz Semiconductor

Jazz Technologies[TM] (AMEX:JAZ) is the parent company of Jazz Semiconductor, Inc. Jazz Semiconductor[R] is the leading independent wafer foundry focused on analog-intensive mixed-signal (AIMS) CMOS process technologies. The company's broad product portfolio includes RFCMOS and specialty CMOS technologies, such as SiGe, BiCMOS, and High Voltage CMOS. These technologies are designed for customers who seek to produce analog and mixed-signal semiconductor devices that are smaller and more highly integrated, power-efficient, feature-rich and cost-effective than those produced using standard process technologies. Jazz customers target the wireless and high-speed wireline communications, consumer electronics, automotive and industrial end markets. Jazz executive offices and its U.S. wafer fabrication facilities are located in Newport Beach, CA. Jazz Semiconductor also has engineering, manufacturing, and sales support in Shanghai, China. For more information, please visit http://www.jazztechnologies.com and http://www.jazzsemi.com.