Mergers & acquisitions

Siemens Sells ONT Biz

RICHARDSON, Texas -- TXP Corporation (OTCBB: TXPO), a global provider of Pre-Manufacturing Services for the electronics industry, today announced that it has signed a Letter of Intent with Siemens AG (NYSE: SI) to acquire the assets and intellectual property for its Optical Network Terminal (ONT) technology, supporting both Broadband Passive Optical Network (BPON) and Gigabit Passive Optical Network (GPON) standards. The Letter of Intent (“LOI”) is non-binding and is subject to the completion of customary due diligence and the execution of definitive agreements. The transaction is expected to close in the fourth quarter of 2006.

Upon completion of the proposed acquisition, TXP will be responsible for overseeing all manufacturing of the technology and will have rights to market the ONT technology. Siemens’ ONT portfolio contains BPON ONTs for Single Family Units (SFUs), Multi Dwelling Units (MDU4), Small Business Units (SBU); and GPON ONTs for SFUs, Ethernet-only SFUs (ESFUs) and SBUs. Under the terms of the LOI, Siemens will retain an undisclosed licensing fee and rights to market the technology internationally. Other terms of the acquisition were not disclosed.

Separately, TXP announced that it hired Siemens’ former ONT development team effective immediately. As a result, TXP has added 35 full-time employees. In connection with the hiring, TXP announced that it has renamed its photonics group to iphotonics.

PON is a point-to-multipoint, fiber to the premises network architecture, in which unpowered or passive optical splitters are used to connect a single optical fiber to multiple premises. Siemens’ ONT terminates the PON at the home or business location, and enables integrated voice, video and high-speed internet access. The ONT is a critical component of the “triple-play” roll-outs which are currently being deployed by the major carriers nationwide.

Michael C. Shores, President and CEO, stated, “The acquisition of the ONT business from Siemens has the potential to dramatically expand our photonics business, and we expect it will position us at the forefront of the rapidly growing PON market. We are extremely excited about the prospects for this business, given the massive expenditures planned by the carriers as they role out new “triple-play” services nationwide.”

TXP Corp. (Nasdaq: TXPO)

Siemens AG (NYSE: SI; Frankfurt: SIE)

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