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Exhibit 99.1
Monday July 17, 2000 8:03 am Eastern Time
LSI Logic Corporation Press Release
LSI Logic Completes $420 Million Purchase of Communications Chip Company,
DataPath Systems
LSI Logic Offers Complete ADSL Solution to Customers
MILPITAS, Calif., July 17 -- LSI Logic (NYSE: LSI) today announced the
completion of its strategic acquisition of DataPath Systems, Inc., a leading
provider of standard product solutions in the rapidly growing broadband
communications market.
DataPath's product offerings include ADSL (Asynchronous Digital Subscriber Line)
systems, cable modems and high-performance transceivers. The San Jose-based
DataPath has approximately 130 employees, including about 115 design engineers.
The $420 million stock transaction follows the necessary regulatory reviews. The
acquisition is expected to be accretive to LSI Logic's earnings before goodwill
amortization (EBG) during 2001. "The DataPath purchase illustrates LSI Logic's
strategy of using targeted acquisitions to amass critical intellectual property
and products to accelerate our growth in high-volume communications markets,
such as broadband, networking and wireless," said John Daane, LSI Logic
executive vice president of the Communications Products Group. "DataPath
provides LSI Logic with key analog building blocks for ADSL, cable modems, and
high-speed transceivers that complement existing LSI Logic products for
customers competing in the broadband space."
Earlier, LSI Logic announced the licensing of discrete multitone (DMT)
technology from Alcatel's Carrier Data Division. By combining DataPath's Analog
Front End (AFE) and the DMT engine from Alcatel, LSI Logic now offers a complete
ADSL solution to customers.
Safe Harbor for Forward Looking Statements:
Statements made in this news release include forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended and Section
21E of the Securities and Exchange Act of 1934, as amended. The company's actual
results in future periods may be materially different from any performance
suggested in this news release. Risks and uncertainties to which the company is
subject by virtue of the announced transaction may include, but may not
necessarily be limited to factors associated, integration of DataPath products
and technologies with the company's and unforeseen market reactions. In
addition, expected financial benefits from the transaction reflect growth
assumptions in broadband market applications, which may not necessarily occur as
anticipated. The company operates in an industry sector where securities values
are highly volatile and may be influenced by economic and other factors beyond
the company's control. In the context of forward-looking information provided in
this news release, reference is made to the
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discussion of risk factors detailed in the company's filings with the Securities
and Exchange Commission during the past 12 months.
About LSI Logic
LSI Logic Corporation is a leading supplier of communications chips for
broadband, data networking, wireless and set-top box applications. In addition,
the company provides chips and boards for network computing and supplies storage
network solutions for the enterprise. LSI Logic is headquartered at 1551
McCarthy Blvd., Milpitas, CA 95035, www.lsilogic.com.
About DataPath Systems
DataPath Systems, Inc. founded in 1994, designs, develops and manufactures
complex mixed analog/digital ICs for the communications and storage industries.
Headquartered in San Jose, DataPath Systems' team of world-class engineers has
developed leading edge, 'best-of-class' performance solutions for the ADSL and
mass storage markets.
