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euro adhoc: Micronas Semiconductor Holding AG
Micronas to acquire WISchip International, a leader in video compression and streaming technology

  Communiqué Adhoc transmis par euro adhoc. L'émetteur est tenu responsable
  du contenu.
Combination of Micronas and WISchip technologies enables a broad
range of HDTV solutions
Zurich, Switzerland, October 26, 2005 - Micronas Semiconductor
Holding AG (SWX Swiss Exchange: MASN, Frankfurt: MNSN, Prime Standard
Segment, TecDAX) today announced the signing of a definitive
agreement to acquire all shares of privately held fabless
semiconductor company WISchip International Ltd. with operational
headquarters in Santa Clara, CA. WISchip is focused on the
development of advanced audio and video system-on-chip IC and
software solutions, implementing the latest generation MPEG1/2/4,
H.264 and VC-1 HDTV standards. These are the key technologies for a
variety of emerging markets utilizing broadband networks and mass
storage for next generation entertainment and communications
applications. Founded in 1998, WISchip will complement Micronas’ team
by adding the in-depth expertise of 104 additional staff members,
including 78 experienced video and computer engineers, 32 of which
are based in the company’s Shanghai R&D facility. Micronas will pay
around USD 80 million in cash for the entire share capital of
WISchip. The transaction is expected to close prior to the end of
this year. WISchip’s technology supports not only the existing
MPEG-1/2/4 compression standards, but also the most advanced new
compression standards such as H.264 and Microsoft's Windows Media®
9/VC-1 at full high definition resolutions. This is crucial to
support all the latest HDTV standards and related consumer
applications like BluRay/HD DVD devices, Internet Protocol (IP)
set-top boxes and DVB (Digital Video Broadcasting). The next
generation of TV signals regardless if being distributed via
satellite, cable, terrestrial or Internet, will all be based on
advanced codecs, such as the H.264 standard (also known as MPEG-4
part 10/AVC (Advanced Video Coding)) and/or Microsoft's WM9/VC-1.
These new codecs dramatically reduce the required bandwidth for the
transmission of audio and video content. EICTA, the European Industry
Association for Information Systems, Communication Technologies and
Consumer Electronics recently adopted H.264/MPEG-4 AVC as the
European DVB HDTV standard. WISchip’s latest decoder is already fully
compliant with H.264 HD and Microsoft’s WM9/VC-1 HD. "WISchip’s
exciting portfolio of products and important IP for HDTV from
whatever source, be it broadcast, IPTV or delivered from storage
media, makes the company the perfect complement for Micronas’
state-of-the-art HD display products," said Wolfgang Kalsbach, CEO of
the Micronas Group. "WISchip has assembled a great team of industry
experts in the field of advanced algorithms and SOC architectures.
Its activities significantly strengthen our worldwide R&D efforts."
"The combination of technologies and products from Micronas and
WISchip will enable Micronas' customers to quickly bring to market
next-generation audio/video solutions for a broad range of products,
including Integrated Digital HDTVs, enhanced cable, satellite and
terrestrial TV set-top boxes, personal video recorders (PVRs), next
generation high definition DVD recorders (HD DVD and BluRay) and
players, Internet Protocol (IP) set-top boxes, IP AV streaming
systems as well as IP surveillance cameras", said Hans-Jürgen Désor,
VP Consumer Products of Micronas. "Together with WISchip’s
world-leading multi-standard compression IC products, Micronas will
be uniquely positioned to provide these emerging markets with
complete cost- and time efficient turn-key solutions." "Micronas’
comprehensive, complementary TV product portfolio, strong market
penetration and broad installed customer base make the company a
perfect partner to leverage our innovative digital media technologies
into exciting new markets," said James L. Mannos, CEO of WISchip.
"Micronas offers unmatched IC design expertise and global reach.
WISchip delivers leading encode and decode engineering capabilities.
The combined company will be excellently positioned to successfully
bring the most innovative video and consumer electronic products to
customers worldwide. Our team is eager to join with the leader in the
TV industry."   WISchip products The company’s latest product, the
DeCypher™ 8100, is a breakthrough multi-stream, high-definition,
audio/video system-on-chip (SoC) decoder with integrated digital
rights management and networking support, compliant with the H.264 HD
standard and Microsoft's WM9/VC-1.The DeCypher 8100 is a flexible and
scalable single-chip solution that will enable OEM consumer
electronics customers to develop next-generation IP set-top boxes,
high-definition television sets and BluRay (BD)/HD-DVD products.
WISchip’s Cypher™ 7108 system-on-chip (SoC) is a highly integrated
video/audio encoding solution designed to address the increasingly
demanding multimedia data storage and transmission requirements of
next-generation home entertainment systems, PC and Mac "media
centers" and commercial/home surveillance systems. Based on advanced
hardware compression technology, the Cypher 7108 supports a broad
range of audio and video encoding formats including MPEG-4 Advanced
Simple Profile (without GMC), MPEG-2/1, Motion JPEG, and H.263.
WISchip’s GO7007SB is a broadly applicable video encoder chip that
provides superior image quality. The WISchip GO7007SB is designed for
devices, such as DVRs, PVRs, or STBs, and for streaming IP solutions
over Ethernet, such as video conferencing or surveillance.
WISchip’s System-on-Chip products include processors based on the
MIPS32® architecture offering customers a wide breadth of industry
standard tools and applications including support for both the Linux
and MS Windows™ CE operating systems. About Micronas  Micronas (SWX
Swiss Exchange: MASN, Frankfurt: MNSN, Prime Standard Segment,
TecDAX), a semiconductor designer and manufacturer with worldwide
operations, is a leading supplier of cutting-edge IC and sensor
system solutions for consumer and automotive electronics. As a market
leader in innovative, global TV system solutions, Micronas leverages
its expertise into new markets emerging through the digitization of
audio and video content. Micronas serves all major consumer brands
worldwide, many of them in continuous partnerships seeking joint
success. While the holding company is headquartered in Zurich
(Switzerland), operational headquarters are based in Freiburg
(Germany). Currently, the Micronas Group employs about 2000 people.
In 2004, it generated CHF 963 million in sales. For more information
on Micronas and its products, please visit
About WISchip Wischip International is a privately held,
venture-backed global provider of digital video and audio
semiconductor solutions that enable new classes of powerful
multimedia products. The company’s portfolio of high-performance,
low-power stand-alone and system-on-chip integrated circuits
incorporates next-generation standards that enable system developers
to quickly bring leading-edge products to market. Patented WISchip
technology maximizes digital video and audio quality in a wide range
of end-user computing, surveillance, and electronic entertainment
products. WISchip International offices are located in Santa Clara,
California, with operations, distribution partners, and strategic
alliance partners in Asia, Europe, and the Middle East. For more
information, visit
WISchip™, Cypher™, DeCypher™ are trademarks of WISchip International
Ltd. in the United States, certain other countries and/or the EU.
MIPS32®  is a trademark of MIPS Technologies, Inc. Any other
trademarks or trade names mentioned are the property of their
respective owners.
Safe Harbor Statement: This press release contains forward-looking
statements based on current expectations or beliefs, as well as a
number of assumptions about future events. These statements and all
other statements that are not historical facts are subject to factors
and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
The reader is cautioned not to put undue reliance on these
forward-looking statements, which are not a guarantee of future
performance and are subject to a number of uncertainties and other
factors, many of which are outside the control of WISchip and
Fin du communiqué                                 euro adhoc 26.10.2005 17:45:00


Investor Relations/Corporate Contact:
Susy Krucker
Phone: +41 44 445 39 60

Branche: Technologie
ISIN: CH0012337421
WKN: 910354
Börsen: SWX Swiss Exchange / Marché officiel

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