austriamicrosystems acquires US-based Texas Advanced Optoelectronic Solutions, Inc.

Date Announced: 20 Jun 2011

Unterpremstaetten, Austria — austriamicrosystems AG (SIX:AMS), a leading global designer and manufacturer of high performance analog ICs (integrated circuits) for the consumer, communications, industrial, medical and automotive markets, has entered into an agreement with Texas Advanced Optoelectronic Solutions, Inc., headquartered in Plano, Texas (USA), to acquire 100% of the shares in TAOS. The transaction is expected to close within the next eight weeks subject to certain regulatory approvals and the occurrence of certain conditions defined in the agreements with the sellers of the TAOS shares.

TAOS is recognized globally as an established innovator in light sensing technology and is a leading worldwide supplier of light sensing solutions to the consumer electronics, computer, industrial, medical and automotive markets. TAOS’ industry-leading display management solutions including ambient light sensors, proximity sensors and color sensors have established the company as the sensor supplier of choice to many Fortune 100 global manufacturers of smartphones, tablet PCs, HDTVs, laptops/notebooks and desktop/all-in-one (AIO) computers. In each of these markets, TAOS has established a strong market position and attractive customer relationships including major smartphone vendors. For fiscal year 2010, TAOS recorded audited revenues of USD 81 million (2009: USD 40 million) and an operating profit margin exceeding 30%. For 2011, TAOS expects further significant revenue growth based on currently available information. TAOS has had a close relationship with austriamicrosystems for several years as a customer of austriamicrosystems’ foundry business.

The consideration for the shares to be acquired will amount to approximately USD 320 million, or approximately EUR 220 million, and is payable as follows: approximately 50% of the consideration in new austriamicrosystems shares against contribution in kind of TAOS shares including customary lock up clauses, i.e. a selling prohibition for the first six months and selling restrictions for up to 24 months after closing of the transaction, and approximately 50% of the consideration in cash. Depending on the achievement of certain revenue criteria by TAOS in 2011, an increase of the purchase consideration for the sellers of the TAOS shares of up to a maximum of USD 10 million, or approximately EUR 7 million, may occur. austriamicrosystems expects the transaction to be accretive to austriamicrosystems’ EPS (earnings per share) from the third quarter 2011 onwards.

In accordance with a framework resolution to be taken by austriamicrosystems' Management Board approximately 2.7 million new austriamicrosystems no-par value bearer shares shall be issued against a contribution in kind of up to 5.9 million TAOS shares for an issue price of USD 55.39 which is approximately CHF 46.60 (approx. EUR 37.98) per new share (one new austriamicrosystems share for every 2.17 TAOS shares) by way of a capital increase out of existing authorized capital. The subscription rights of austriamicrosystems' shareholders are excluded. All new austriamicrosystems shares will be privately placed with an entity owned by certain TAOS shareholders pursuant to the acquisition agreements. The new shares will not and may not be publicly offered. Application has been made for the new austriamicrosystems shares to be listed and admitted to trading on the SIX Swiss Exchange according to the Main Standard. The exact number of austriamicrosystems' shares to be newly issued will be determined prior to the closing of the transaction. austriamicrosystems will inform the public of further developments with regard to the transaction in-line with the requirements of the SIX Swiss Exchange publicity rules.

"Acquiring TAOS results in a complementary expansion of our existing innovative sensor portfolio for mobile devices and considerable growth of our Consumer & Communications business. TAOS holds a
strong market position as a leading, high-volume provider to many major makers of mobile consumer electronics worldwide. The strategic combination of austriamicrosystems and TAOS creates a significant
provider of advanced sensor technologies for the attractive smartphone and tablet PC markets", emphasizes John Heugle, CEO of austriamicrosystems.

"Our display management and proximity detection solutions bring important advantages to increasingly sophisticated devices like the latest generation of mobile devices. Intelligent, integrated sensor devices are quickly becoming core elements of mainstream consumer and communications devices and offer new opportunities in emerging applications. We are excited to join forces with austriamicrosystems leveraging the combined expertise of austriamicrosystems and TAOS as a leader in advanced mobile device sensor technologies", adds Kirk Laney, CEO of TAOS.

About austriamicrosystems

austriamicrosystems is a leading designer and manufacturer of high performance analog ICs (integrated circuits), combining over 25 years of analog design capabilities and system know-how with its own stateof-the-art manufacturing and test facilities. austriamicrosystems leverages its expertise in low power and high accuracy to provide industry-leading standard and customized analog products. Operating worldwide with more than 1,100 employees, austriamicrosystems focuses on the areas of power management, sensors & sensor interfaces and mobile infotainment in its markets Consumer & Communications, Industry & Medical and Automotive. austriamicrosystems is listed on the SIX Swiss Exchange in Zurich (ticker: AMS). For more information, please visit www.austriamicrosystems.com

About TAOS

With more than a decade of analog mixed-signal technology innovation and market leadership, Texas Advanced Optoelectronic Solutions (TAOS), Inc. designs and manufacturers digital and analog light-sensing solutions that deliver increased system integration, design flexibility and functionality to a wide range of products in the consumer, computer, industrial, medical and automotive markets. Integrated ambient light sensing and proximity detection solutions enable “Green” displays by reducing system power consumption. An expanding portfolio of programmable analog and digital RGB color sensors provides accurate color discrimination, determination and measurement. More information can be found at www.taosinc.com

Contact
Lucy Brearley Consultant TKO Marketing Consultants Ltd Telephone: +44 (0)1444 473555 Mobile: +44 (0)792 112 5304

E-mail:lucy@tko.co.uk

Web Site:www.austriamicrosystems.com

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