Celeritek to Acquire Tavanza

SANTA CLARA, Calif. -- Celeritek, Inc. (NASDAQ: CLTK) , a manufacturer of GaAs semiconductor components and GaAs-based subsystems for the wireless communications market, today announced that it has signed a definitive agreement to acquire Tavanza Inc. Terms of the agreement were not disclosed. Celeritek noted that the acquisition will not have a material impact on the Company's cash position.Tavanza is a privately held, fabless designer of power amplifier modules and components for cellular and wireless LAN products. Tavanza's innovative technology will enable Celeritek to better respond to the growing demand for high performance, power efficient, small volume, cost effective power amplifiers for handsets and WLAN products. Already, Tavanza has sampled CDMA power amplifiers to several Korean cell phone makers. As previously announced in September, Celeritek has opened an office in Korea to better serve this growing market."This acquisition brings together complementary strengths and technologies to support our strategy of broadening our product offering, expanding our customer base and continuing to invest in research and development," said Tamer Husseini, president and chief executive officer of Celeritek. "In addition to Tavanza's innovative chip design, which should begin contributing to Celeritek's revenue in the second half of fiscal 2004, Tavanza has developed cost effective packaging techniques that will allow Celeritek to achieve its goal of lowest cost producer of power amplifier modules. The Tavanza acquisition will leverage Celeritek's 802.11a WLAN product development strategy by providing the CMOS design expertise necessary to develop integrated multi-band 802.11 a/b/g front end modules. We welcome Tavanza's talented and experienced RF semiconductor engineers to the Celeritek team." Celeritek Inc.