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Micronas Expands Into Digital Broadcast Market with Acquisition of Microtune's Holland Design Center (0310)

- Ad hoc news | 0310

Acquisition Includes Advanced Digital Integrated Circuits for Emerging Audio and Video Broadband Applications

Zurich, SWITZERLAND, April 24, 2003 - Micronas today announced that it has acquired the Microtune (Holland) B.V. Design Center located in Nijmegen; a design center focused on digital integrated circuits (ICs) and solutions, such as demodulators, for digital television applications (DTV). This transaction enables Micronas, a leading supplier of innovative application-specific semiconductor solutions for multimedia, consumer and automotive electronics, to further expand its comprehensive TV system solutions portfolio, while permitting Microtune to concentrate on its core radio frequency (RF) technologies.

The Nijmegen Design Center employs about 20 engineers and represents an investment in related and complementary technology for Micronas. The purchase includes all development, marketing and application activities related to the center.

"With this acquisition we have taken a decisive step forward in our digital TV business, strengthening our position in the TV market and providing increased value for our customers," said Dr. Wolfgang Kalsbach, CEO of the Micronas Group. "Our strength in digital, audio and video processing, combined with the expertise acquired with this purchase, puts us in the
perfect position to benefit from the continuing global migration from analog to digital TV."

"Our core competence is developing and marketing highly integrated RF-based solutions for the broadband communications markets, and this transaction is a key element in reinforcing our strategy," explained Douglas J. Bartek, chairman and CEO of Microtune. "We are looking forward to working with Micronas in leveraging advanced digital ICs and complete solutions into our joint customer base."

Already established in several European and Asian markets, digital broadcasting is set to replace conventional current analog broadcasting within the next 5 to 10 years. In line with this, the Nijmegen Design Center has previously developed ICs, such as demodulators for digital video broadcasting (DVB-T) for digital TV receivers. Typical applications include consumer electronics devices ranging from stationary and portable TV sets, set-top boxes and PC tuner cards to automotive receivers or tuner modules for such devices. The Design Center has a solid background for addressing new digital TV broadcasting formats that are in accordance with Digital Video Broadcasting Project, a consortium dedicated to creating global standards for the worldwide delivery of digital television and data services.

Micronas will showcase these demodulators during the Mediacast 2003 in its stand H32, May 20-22 at the Excel Convention Center in London.

About Digital Video Broadcasting
The Digital Video Broadcasting Project (DVB, see www.dvb.org)is an industry-led consortium of over 300 broadcasters, manufacturers, network operators, software developers, regulatory bodies and others in more than 35 countries committed to designing global standards for the global delivery of digital television and data services. DVB standards cover digital satellite (DVB-S), cable (DVB-C) and terrestrial (DVB-T) TV transmissions. Allowing good reception even under difficult geographical conditions and in a mobile environment, DVB-T has already been chosen over alternative standards by the majority of countries who plan to introduce digital terrestrial television. Prominent examples are the UK, which has recently relaunched a nationwide DVB-T-based free-to-air channel bouquet, and Germany, where the capital Berlin has started switching off analog terrestrial TV broadcasts in favor of more than 20 DVB-T-based TV programs launched earlier this year. Singapore is successfully using DVB-T for mobile reception by the public transport system network buses and many Asian countries are expected to decide about DVB-T introduction soon.

About Microtune
Microtune, Inc. is a leading silicon and systems company that designs, manufactures and markets radio frequency (RF)-based solutions for the global broadband communications, automotive electronics and wireless connectivity markets. Inventors of the MicroTuner single-chip broadband tuner, the Company offers a portfolio of advanced tuner, amplifier, transceiver and wireless products that enable the delivery of information and entertainment across new classes of consumer electronics devices. The Company currently holds 24 U.S. patents for its technology, with more than 50 applications pending approval that span its RF and wireless products, containing more than 2,000 supporting claims. Founded in 1996, Microtune is headquartered in Plano, Texas, with key design, manufacturing and sales centers located around the world. The web site is www.microtune.com.

Microtune is traded on the NASDAQ Stock Exchange under the symbol TUNE.

Editors Note: Microtune is a registered trademark and MicroTuner a trademark of Microtune, Inc. DVB is a registered trademark of the DVB Project.

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