<PAGE> 1
EXHIBIT 99.3
CYPRESS ACQUIRES RF SPECIALIST ALATION SYSTEMS;
MOVE GEARED TO ACHIEVE CRITICAL MASS IN WIRELESS BUSINESS
ALATION'S ANALOG, BASEBAND IP EXPECTED TO ENABLE $7 BLUETOOTH CONNECTION;
INTERFACE PRODUCTS DIVISION FORMED TO ADDRESS OPPORTUNITIES IN WIRELESS, USB
SAN JOSE, California...May 3, 2000 -- Cypress Semiconductor Corporation
(NYSE:CY) today announced its second acquisition in a week, signing a definitive
agreement to acquire Alation Systems Inc., a privately held wireless systems
company based in Mountain View, CA. Alation brings to the Cypress fold a deep
portfolio of intellectual property in analog, DSP, and RF baseband technology,
along with software and systems expertise in the fast-growing wireless arena.
The announcement follows on the heels of Cypress's acquisition last week of
RadioCom Corp., a privately held company specializing in the architecture and
design of semiconductor radio frequency (RF) circuits. Cypress aims to combine
RadioCom and Alation with its highly successful USB business to form the
Interface Products Division. IPD will focus on providing integrated,
cost-effective solutions for Bluetooth, wireless LAN and other wireless
protocols, along with microcontroller solutions for current and future
iterations of USB.
The acquisitions are geared to accelerate Cypress's ongoing penetration of
wireless markets, including that for wireless handsets, a segment where the
company already enjoys success with its ultra-low-power SRAMs and its low-noise
RF Phase-Locked Loop (RF PLL) products.
"The acquisition of RadioCom and Alation opens a range of new application
possibilities for Cypress in the wireless business," said Cathal Phelan, newly
named IPD vice president, who will report directly to Cypress president and CEO
T.J. Rodgers. "Cypress now has the software, hardware, analog and manufacturing
process expertise to create integrated solutions for multiple segments of the
wireless business. For example, we aim to produce integrated, cost-effective
silicon for Bluetooth for less than $7 per connection."
"Bluetooth will be the personal area network (PAN) wireless standard of the
future," Phelan said. "USB, based on its modest cost, will be the physical-layer
connection of choice, linking users of mobile computers, mobile phones, and
other portable devices with wireless local networks."
"Alation has a lot of relevant expertise in the area of wireless LAN for the
home and has already created a Bluetooth solution," said Dan McCranie, Cypress
executive vice president, sales and marketing. "Their solution for Bluetooth was
defined using many Cypress component building blocks. Now we can integrate these
components as a combined company. The acquisition of Alation, along with
RadioCom, positions Cypress for success in this emerging, mobile computing
environment."
"There is a near perfect synergy among Alation, RadioCom, and existing Cypress
product and technology expertise," said Alation president and chief executive
officer Geoff Zawolkow. "The new business will take advantage of Cypress's
existing customer base and its broad, global sales and marketing organization.
"Over time, Cypress's manufacturing capabilities will lower Alation's costs and
improve its profitability," Zawolkow said. "Cypress now holds a strong position
in all the key areas needed to provide a successful Bluetooth solution. Their
technologies are world class, their manufacturing capabilities are low-cost
enough to dominate USB, and now their technical know-how in RF, baseband, and
stack/protocol software is comparable with any Bluetooth player."
ABOUT CYPRESS
Cypress Semiconductor provides high-performance integrated circuit solutions "By
Engineers. For Engineers.?" for fast-growing companies in fast-growing markets,
including data communications, telecommunications, computation, consumer
products, and industrial-control. With a focus on emerging communications
applications, Cypress's product
<PAGE> 2
lines include networking-optimized and micropower static RAMs; high-bandwidth
multiport and FIFO memories; high-density programmable logic devices; timing
technology for PCs and other digital systems; and controllers for Universal
Serial Bus (USB). Cypress is No. 1 in the USB and clock chip markets.
More than two-thirds of Cypress's sales come from fast-growing datacom/telecom
markets and dynamic companies such as Alcatel, Cisco, Ericsson, Lucent,
Motorola, Nortel Networks, and 3Com. Cypress's ability to mix and match its
broad portfolio of intellectual property enables targeted, integrated solutions
for high-speed systems that feed bandwidth-hungry Internet applications. Cypress
aims to become the preferred silicon supplier for Internet switching systems and
for every Internet data stream to pass through at least one Cypress IC.
Cypress employs more than 3,900 people worldwide with international headquarters
in San Jose, California. Its shares are listed on the New York Stock Exchange
under the symbol CY. More information about Cypress is accessible electronically
on the company's worldwide web site at http://www.cypress.com or by CD-ROM (call
1-800-858-1810). An electronic investor forum, and other investor information,
is located at http://www.cypress.com/investor/index.html.
ABOUT ALATION
Alation Systems Inc. is a privately held company formed to turn the vision of
low-cost wireless networking into a reality. Alation is actively leveraging its
expertise and technologies in the development of Bluetooth solutions. Alation
has experience in baseband, analog, software development and RF system design
through the delivery of its the HomeCast(TM) Open Protocol (HOP(TM))-based
products to the networking market. Alation can be found on the Web at
www.alation.com.
SAFE HARBOR PROVISIONS
The above news release contains forward-looking statements regarding the
acquisition of RadioCom and Alation, Cypress's Bluetooth venture, and the impact
of these initiatives on Cypress's operations. Cypress's actual results may vary
materially from the results discussed in these forward-looking statements.
Factors that may cause such a difference include: those risks surrounding the
timely development, production, and continued market acceptance of the combined
company's products; Cypress's ability to successfully integrate the operations
of the acquired companies; the ability of the combined company to compete in the
highly competitive and rapidly changing marketplace; and other risks detailed
from time to time in Cypress's filings with the Securities and Exchange
Commission.
-2-
