Micronas announces capital increase (0210)

Embargoed / not for release in the United States, Canada, Japan or Australia

In the light of continued positive market conditions and operating performance, Micronas announces today that it will proceed with an equity offering at the prevailing market price, which will be used to reduce acquisition related debt and increase financial flexibility. The offering comprises up to 5.35 million registered shares (including an over-allotment-option of up to 0.7 million registered shares). The shares are being offered by way of a public offering in Switzerland and private placements to institutional investors outside Switzerland and the United States.

The net proceeds of the offering will be used to repay part of the term-loan indebtedness incurred in connection with the acquisition of the Image and Video consumer electronics business from Infineon in October 2000. The offering will significantly strengthen Micronas' balance sheet and reduce interest expense.

The 5.35 million registered shares will be offered out of the existing authorised share capital. Bookbuilding will commence on March 11, 2002 and the company expects to announce the offer price on March 13, 2002. Listing of the new shares on the SWX Swiss Exchange and in the Neuer Markt segment of the Frankfurt Stock Exchange is envisaged to take place on March 14 and 18, 2002, respectively. The subscription rights of existing shareholders will be excluded. Credit Suisse First Boston acts as sole lead manager of the offering.

The Board of Directors will propose to the Annual General Meeting of April 12, 2002 to cancel the conditional capital of CHF 5.35 million, which was created for the issuance of an equity-linked bond in case equity markets would not allow for an equity offering.

The Micronas Group is a leading independent supplier of innovative application-specific semiconductor solutions for consumer and automotive electronics. Its shares are already listed on the SWX Swiss Exchange and the Neuer Markt in Frankfurt.

Zurich, March 7, 2002 Micronas Semiconductor Holding AG
Susy Krucker
Investor Relations
phone: +41 1 445 39 60
e-mail: investor@micronas.com