Broadcom completes acquisition of Mobilink - News Flash - Mobilink Telecom - Brief Article

Electronic News, June 3, 2002

BROADCOM CORP. HAS COMPLETED ITS ACQUISITION OF Mobilink Telecom Inc., a mobile phone chipset supplier. When the stock deal was first announced last month, it was valued at about $190 million, but stock market declines have pushed down the value to about $126 million. Mobilink shareholders, which received 5.6 million shares in the merger, stand to receive a further 2 million shares of Broadcom common stock if certain performance goals are reached.

Santa Clara, Calif.-based Mobilink currently has a series of GSM chipsets in production. It also is completing field testing and certification of its GPRS products. This market is expected to deliver Internet protocol packet services to more than 650 million GSM subscribers, the company said.

The acquisition signifies Broadcom's entry into the cellular chip, design and software markets. Broadcom has indicated it plans to combine Mobilink's 2G and 2.5G technologies with its own 802.11, Bluetooth and DSP products. Irvine, Calif.-based Broadcom expects to record a one-time charge for purchased in-process R&D expenses related to the acquisition in fiscal Q2, which ends June 30. The amount of that charge has not yet been determined.