Exhibit 99.1
Press Release
Contact: Bob McMullan
Chief Financial Officer
GlobeSpan, Inc.
1-732-345-7558
GlobeSpan Completes Acquisition of iCompression, Inc.
Red Bank, New Jersey - July 5, 2000 - GlobeSpan, Inc. (NASDAQ:GSPN) a leading
provider of integrated circuit, software, and system designs for digital
subscriber line (DSL) applications, today announced that it has completed the
acquisition of iCompression, Inc. The transaction was originally announced on
May 16, 2000.
Through the acquisition of iCompression, GlobeSpan is able to accelerate its
development with a fully integrated system-on-a-chip product offering for the
VoDSL and VoIP markets. iCompression's resources and capabilities are a
strategic addition to GlobeSpan's recently enhanced core competencies from its
three previous acquisitions completed this year; Ficon Technologies, Inc.,
PairGain Microelectronics Group, and T.sqware, Inc. All of iCompression's
employees will join GlobeSpan.
GlobeSpan issued approximately 3,470,985 shares of its common stock and assumed
the equivalent of 528,918 stock options in exchange for all the issued and
outstanding shares, and stock options of iCompression. The transaction will be
accounted for as a purchase.
About GlobeSpan
GlobeSpan, Inc. is a leading provider of integrated circuit, software and system
designs for digital subscriber line (DSL) applications which enable high-speed
data transmission over the existing copper telephone lines at rates over 100
times faster than today's 56 Kilobit modems. GlobeSpan is leveraging seven years
of field experience implementing DSL technology to deliver high performance,
cost effective DSL chipset, and software solutions to DSL equipment
manufacturers worldwide. The company's core engineering team includes
individuals who were early developers of DSL technology at AT&T Bell Labs, in
addition to experts in VLSI design, communications algorithms, IP routing and
switching, ATM protocols and Voice over DSL system software. These core
competencies enable GlobeSpan to deliver complete DSL system integrated
circuits. GlobeSpan offers a broad suite of standard based integrated DSL
chipset solutions for ADSL, SDSL, SHDSL, HDSL, and HDSL2 applications utilizing
DMT, 2B1Q, PAM and CAP line codes. To date, the company has shipped millions of
DSL chipsets to a customer base of more than 100 DSL equipment manufacturers
worldwide, representing a considerable share of this emerging market.
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GlobeSpan, Inc. is based at 100 Schulz Drive, Red Bank, New Jersey 07701 and can
be reached by phone at + 1-732-345-7500 or at www.globespan.net.
This press release contains forward-looking information within the meaning of
Section 21E of the Securities Exchange Act of 1934, and is subject to the safe
harbors created by this section. These forward-looking statements concern, among
other things, the future market of DSL chipsets. The matters discussed in this
news release involve risks and uncertainties described from time to time in the
company's filings with the Securities and Exchange Commission, particularly in
the Risk Factors section relating to the rapid changes in the DSL market,
competition and limited protection of the company's intellectual property set
forth in the company's most recent Annual Report on Form 10-K. The Company
assumes no obligation to update the forward-looking information contained in
this press release.
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