- 07 April 2006 -

Mimix Broadband sells ex-Celeritek GaAs fab to USTI

Mimix Broadband, Inc., the supplier of microwave and mm-wave GaAs
MMICs has confirmed the sale of its GaAs foundry to investment company
Universal Semiconductor Technology, Inc. (USTI). The agreement
includes a supply deal whereby Mimix and USTI will conduct a
multi-year GaAs wafer supply and 'non-compete' agreement, guaranteeing
Mimix customers of continuous supply.

In June 2005 Mimix completed the purchase of substantially all of the
assets of Celeritek Inc., including the Santa Clara, GaAs foundry that
Mimix has sold to USTI. USTI will provide Mimix with foundry services
for multiple processes including active GaAs MESFET, pHEMT and HBT, as
well as thin film silicon and ceramic circuit components and
substrates.

"This agreement is ideal, since it allows Mimix to be 100% fabless,
while continuing to provide our customers with a continuous supply of
the unique device intellectual property developed at Celeritek and now
owned by Mimix," stated Rick Montgomery, CEO, Mimix Broadband, Inc.
"Our customers benefit greatly from this deal. No foundry disruption
will occur in manufacturing our semiconductor products, and they can
expect the same quality and reliability from the products."

"We are enthusiastic about this agreement," stated Mr. Bao Hua Zheng,
Chairman of Universal Semiconductor Technology, Inc. "USTI will have
the opportunity to manufacture GaAs semiconductors, using proven and
industry-leading processes, and the foundry will serve as a platform
to develop new, cutting-edge processes to serve customers targeting
the compound semiconductor industry."

Montgomery added, "We are extremely pleased to have executed an
agreement with USTI, because its financial resources, experience and
expertise position them to be a successful partner and supplier for
the long term."

Web: http://www.mimixbroadband.com

EDITORIAL COMMENT: An unexpected move by Mimix Broadband and it is not
clear whether it was the arbiter of the deal or if USTI was looking
for GaAs technology. A couple of things are clearer, Celeritek's
legacy is going to continue under another banner plus USTI has GaAs to
complement its proprietary high voltage technologies and mixed signal
capabilities. It might be unknown in III-V circles but USTI has been
around since 1978. It also has a lot of experience in chip making and
running a fab from front- to back-end. Its customers "represent some
of the best names in aerospace and medical technologies" according to
its website including the "biggest names in consumer and automotive
products". On this basis it looks like Mimix Broadband has got itself
a good partner. USTI will also be able to offer the foundry to other
interested parties outside its present client roster so in effect the
business now has a new name to contend the market.