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Avago Technologies Begins Operations As World's Largest Privately Held Independent Semiconductor Company

Posted on: Thursday, 1 December 2005, 12:00 CST

Avago Technologies today announced it has started operations as the world's largest privately held independent semiconductor company. Avago was created as a result of the acquisition of Agilent Technologies Inc.'s (NYSE:A) Semiconductor Products Group by Kohlberg Kravis Roberts & Co. (KKR) and Silver Lake Partners in a $2.66 billion transaction announced Aug. 15, 2005, and completed today.

"Our strategy is to leverage our substantial intellectual property, design expertise and system-level knowledge to win in our markets," said Dick Chang, president and CEO of Avago Technologies. "We'll continue to provide the innovative products that enable our customers and that have established our market leadership positions. We'll also continue to drive profitability through a highly variable, low-cost operating model, and we'll capitalize on our new independence by developing an efficient, stand-alone cost structure."

James H. Greene Jr., a partner at KKR and an Avago board member, said, "This is a momentous day for Avago Technologies. We believe its strong history of innovation, many leadership positions, world-class global supply chain and excellent reputation for outstanding customer service to the world's leading OEMs will produce solid revenue growth and returns."

John R. Joyce, a managing director of Silver Lake and an Avago board member, said, "Avago Technologies is a customer-focused semiconductor company with great potential for growth. Given its strong intellectual property foundation of more than 2,000 patents, global scale, talented management team, dedicated employees and cost efficient operating structure, Avago is already well on its way to becoming a true semiconductor powerhouse. We look forward to continuing to work closely with the Avago team to further enhance and extend Avago's leadership in the semiconductor arena."

Avago Technologies (pronounced, a-va'-go) has an extensive portfolio of more than 5,500 products, which are sold into a broad set of applications and end markets, including wireless and wired communications, industrial, automotive, consumer electronics and storage and computing. The company maintains "top three" market leadership positions in optocouplers, infrared transceivers, optical communications, printer ASICs, optical mouse sensors, and motion control encoders. Avago products are sold to more than 40,000 customers through both a worldwide distributor network and direct sales force.

Avago Technologies is co-headquartered in San Jose, Calif., and Singapore, and begins operations with 6,500 employees of which 1,000 are analog design engineers. Avago differentiates its business through effective supply chain management, strong worldwide distribution channels and a highly variable, low-cost operating model. The company has over 35 years of operating history in Asia, where approximately three-quarters of Avago employees are located and where a significant portion of its products are produced. Avago's presence in Asia places it in close proximity to many of its customers and to the center of the worldwide electronics supply chain. Avago maintains highly collaborative design and product development engineering resources around the world, including five design centers in Asia, four in the United States and two in Europe.

About Avago Technologies

Avago Technologies is the world's largest privately held independent semiconductor company, with 6,500 employees and net revenue of $1.8 billion in fiscal 2005. Avago provides an extensive range of analog, mixed-signal and optoelectronic components and subsystems to more than 40,000 customers worldwide. The company serves three primary product categories comprising optoelectronics, RF/microwave components and enterprise ASICs, and is recognized for providing innovative, high-quality products along with strong customer service and the industry's best on-time delivery. Avago's heritage of technical innovation dates back 40 years to its Agilent/Hewlett-Packard roots. Information about Avago is available on the Web at www.avagotech.com.

Avago, Avago Technologies, and the A logo are trademarks of Avago Technologies, Pte. in the United States and other countries.

Source: Business Wire

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