Broadcom Acquires Mobilink

IRVINE, Calif. and SANTA CLARA, Calif. -- Broadcom Corporation (Nasdaq: BRCM), the leading provider of integrated circuits enabling broadband communications, today announced that it has completed the acquisition of Santa Clara-based Mobilink Telecom, Inc. Mobilink is a leading supplier of chipsets and reference designs for use in cellular phones, cellular modem cards and wireless PDAs. Its products are currently in production and being used by major manufacturers of devices designed for the Global System for Mobile Communications (GSM), the world's most prevalent mobile phone standard. In addition, Mobilink is completing field-testing and certification of its General Packet Radio Service (GPRS) products, targeted to a market that will deliver Internet Protocol packet services to over 650 million GSM subscribers. In connection with the acquisition, Broadcom issued or reserved for future issuance an aggregate of 5,608,662 shares of its Class A common stock in exchange for all outstanding shares of Mobilink's preferred and common stock and upon exercise of outstanding employee stock options and other rights of Mobilink. If certain internal performance goals are satisfied, certain shareholders and option holders of Mobilink will receive up to 2,045,569 additional shares of Broadcom Class A common stock. The share issuances were exempt from registration pursuant to section 3(a)(10) of the Securities Act of 1933, as amended. A portion of the shares issued will be held in escrow pursuant to the terms of the acquisition agreement. Broadcom Corp.