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Exhibit 99.1
[ERICCSON LOGO] PRESS RELEASE
OCTOBER 13, 2000
ERICSSON TO ACQUIRE NASDAQ-LISTED MICROWAVE POWER DEVICES (MPD)
- A step to further strengthen Ericsson's position as the leading Wireless
Systems supplier for 3G
ERICSSON (NASDAQ: ERICY) AND MICROWAVE POWER DEVICES, INC. (NASDAQ: MPDI) TODAY
ANNOUNCED THAT THEY HAD SIGNED A FINAL AGREEMENT WHEREBY ERICSSON WILL ACQUIRE
MPD AT A PRICE OF USD 8.70 PER MPD SHARE FOR A TOTAL AMOUNT OF APPROXIMATELY 100
MILLION USD.
Within ten business days, Ericsson will commence a cash tender offer for all of
the outstanding MPD shares. The Board of Directors of MPD has unanimously
approved the agreement. The transaction is conditioned upon termination of the
antitrust waiting periods in the US and other countries, as well as on other
customary conditions. The holders of over 50 percent of MPD's shares have agreed
to tender their shares into the Ericsson tender offer.
MPD is a market leader in the design and manufacture of radio frequency and
microwave linear high power amplifier products. Its strong competence in this
area is important for the development of products for 3G.
"MPD's technical expertise, volume production experience and commitment to
quality will further strengthen Ericsson's position as the leading
infrastructure supplier to the variety of needs from wireless operators," said
Mats Dahlin, Executive Vice President of Ericsson, head of Division Mobile
Systems.
"We are pleased to join forces with Ericsson. In addition to the opportunity
this offers to our customers and employees, we are convinced that this
transaction is in the best interest of our shareholders. Ericsson is a world
leader in wireless technology, and we look forward to serving our customers with
our enhanced capabilities," said Al Weber, CEO of MPD.
Radio base stations in mobile systems are going through a continuous
development.
One of the major technology steps is the introduction of Multi Carrier Power
Amplifiers (MCPA), as opposed to traditional combiners. These amplifiers are
vital building blocks in the third generation mobile radio systems.
MPD designs, manufactures and supplies linear power amplifiers and related
subsystems to the worldwide wireless telecommunication market. These amplifiers,
which are key components in base stations and other wireless telecommunication
networks, increase the power of radio frequency microwave signals with low
distortion. In addition, MPD designs and manufactures high-power, solid-state
amplifiers for satellite communications, radio, radar and medical applications.
Founded in 1967, MPD is based on Hauppauge, Long Island, and has 370 employees.
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Ericsson is the leading communications supplier, combining innovation in
mobility and Internet in creating the new era of mobile Internet. Ericsson
provides total solutions covering everything from systems and applications to
mobile phones and other communications tools. With more than 100,000 employees
in 140 countries, Ericsson simplifies communications for customers all over the
world.
Read more at http://www.ericsson.com/pressroom
FOR FURTHER INFORMATION, PLEASE CONTACT
Pia Gideon, Vice President, External Relations
Phone: + 46 8 719 2864, E-mail: [email protected]
Mikael Widell, Director Media Relations, Corporate Communications
Phone: +46 8 719 5889, E-mail: [email protected]
Kathy Egan, Vice president communications, Ericsson Inc.
Phone: +1 212 685 4030, E-mail: [email protected]
IMPORTANT LEGAL INFORMATION
The foregoing communications contain forward-looking statements within the
meaning of the Safe Harbor Provisions of the US Private Securities Litigation
Reform Act of 1995 (the "Safe Harbor Provisions"). Ericsson and MPD are under no
obligation to (and expressly disclaim any such obligation to) update or alter
their forward-looking statements as a result of new information, future events
or otherwise. The Safe Harbor Provisions are not applicable to the foregoing
communication to the extent that they constitute tender offer materials and have
not been judicially determined to be applicable to such communication to the
extent that they constitute soliciting materials.
Investors and security holders are strongly advised to read both the tender
offer statement and the solicitation/recommendation statement regarding the
tender offer referred to in this press release, when they become available,
because they will contain important information. The tender offer statement will
be filed by Ericsson with the Securities and Exchange Commission (SEC) and the
solicitation/recommendation statement will be filed by MPD with the SEC.
Investors and security holders may obtain a free copy of these statements (when
available) and other documents filed by Ericsson and MPD at the SEC's web site
at http://www.sec.gov
