- 15 April 2005 -

TriQuint bows out of opto to focus on RF

TriQuint Semiconductor Inc and CyOptics Inc are agreed for TriQuint to sell its optoelectronics operation in Breinigsville, Pennsylvania, and Matamoros, Mexico, to CyOptics, headquartered in Lehigh Valley, Pennsylvania.

The sale is an asset sale including the products, manufacturing equipment, inventory, the Mexican entity, related intellectual property rights and other assets that constitute the operation that manufactures indium phosphide (InP) optical chips and components for the optical networking market.

TriQuint continuse to support current optical customers and products based on gallium arsenide, not associated with the operations in Pennsylvania and Mexico. CyOptics plans to employ the vast majority of TriQuint's approximately 100 employees in Pennsylvania and approximately 150 employees in Mexico.

Separately, TriQuint has entered into an agreement in March to sell its nearly 850,000sq.ft optoelectronics facility and surrounding property in Breinigsville, Pennsylvania, to Anthem Partners, LLC, an affiliate of MRA Group of Plymouth Meeting, Pennsylvania.

MRA intends to transform the existing facility into one of the Mid-Atlantic region's most advanced technology centers, featuring a combination of technology research and development, bio-medical engineering, high tech manufacturing, and a related education advancement and conference center.

CyOptics will lease approximately 90,000 sq.ft of space in this facility for its operations once it has completed its purchase of the business from TriQuint.

TriQuint anticipates the sale to CyOptics will close by the end of April 2005 and the sale to Anthem by the end of May 2005. Commenting on the sale, Ralph Quinsey, president and CEO, stated, "The optoelectronics market will only support a few right sized and nimble players that are positioned for further investment in this market. Merging

"TriQuint's optoelectronics business with the privately held CyOptics provides a more optimal operating environment and return on investment horizon for the business. These agreements with CyOptics and with Anthem Partners create a stronger business unit able to invest in the future of optoelectronics."

Quinsey added, "TriQuint's total consideration from the sale of the building and the business will be approximately $32m and will result in a one-time gain of between $7-$8m.

" We will also receive a minority ownership share in CyOptics. We now intend to turn our full attention to our growing businesses in the wireless handset, base station, defense and wireless broadband access markets building on our portfolio of successful semiconductor and filter products."

Ed J Coringrato, president and CEO of CyOptics, added, "Industry consolidation is much needed... The combination of CyOptics and TriQuint's optoelectronics business makes the new CyOptics a top five supplier of InP optical chips and components."

"Our number one priority will be to continue to serve the existing TriQuint and CyOptics customer base with no interruptions and work closely with our customers on new sales opportunities. The TriQuint optoelectronics business is one of the best in the industry, with a rich history dating back to Bell Labs and Lucent Technologies, and our intention is to continue this proud tradition of innovation and customer service."

Larry Stuardi, President of MRA Group and partner and founder of Anthem Partners, said, " We plan to springboard off the optoelectronics engineering and manufacturing performed by CyOptics to attract other high technology research and development and manufacturing companies, as well as potentially utilising the site to advance technology education and advanced learning. The property is a technological jewel and we are delighted to be able to lead its redevelopment for the benefit of the region."