Xilinx to Recognize $400 Million One-time Gain in Fiscal Q4 - Company Financial Information

Edge: Work-Group Computing Report, Jan 10, 2000

Xilinx, Inc. Tuesday announced that it will recognize an approximate $400 million after-tax gain in its fiscal fourth quarter ending April 1, 2000, as a result of the merger of United Silicon Inc. (USIC) with United Microelectronics Corporation (UMC).

The gain, to be reported as Other Income, represents the appreciation of Xilinx's investment in USIC. As a result of this merger, Xilinx will own 222 million UMC shares, or approximately 2% of the combined UMC Group.

Due to restrictions imposed by UMC and the Taiwan Stock Exchange, Xilinx will be subject to a certain holding period during which it will not be able to sell its UMC shares. When these restrictions are removed and Xilinx has the ability to sell the UMC shares, it is possible the amount of any potential gain may have changed. At this time, Xilinx does not have any plans regarding the disposition of UMC shares it receives.

"Our wafer capacity arrangement with UMC Group is unchanged," stated Kris Chellam, senior vice president and chief financial officer at Xilinx. "In addition to creating liquidity for Xilinx's ownership position in UMC, this new structure will enable Xilinx to access foundry capacity within the entire UMC Group." FMI: http://www.xilinx.com.