Mergers & acquisitions

Vitesse Buys Exbit

CAMARILLO, Calif. - Vitesse Semiconductor Corporation (NASDAQ:VTSS) announced announced today that it has agreed to acquire Exbit Technology A/S ("Exbit"). Exbit, headquartered in Herlev, Denmark, is a fabless semiconductor company that develops high-speed chip-sets and Intellectual Property ("IP") Cores for the communications and networking industry. The company is developing industry leading technology in Gigabit and 10 Gigabit Ethernet switching and routing technology with focus on providing complete systems solutions for the networking equipment manufacturers. Exbit has 62 employees, including over 40 engineers.

In connection with the acquisition, Vitesse will issue approximately 4.4 million shares of its common stock in exchange for all outstanding Exbit common stock and upon exercise of outstanding Exbit employee warrants. Additionally, up to approximately 2.5 million shares of Vitesse common stock will be reserved for future issuance to the stockholders and warrant holders of Exbit upon achievement of certain performance goals. The transaction is expected to be completed in the quarter ending June 30, 2001, subject to customary regulatory approvals.

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