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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!!

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To: Linda Kaplan who wrote (6328)4/29/1999 2:03:00 PM
From: zbyslaw owczarczyk  Read Replies (1) of 6565
 
Mitsubishi Selects VLSI's OneC GSM Solution For
Its Recently Announced Trium Handsets

Order Totals $19 Million

SAN JOSE, Calif., April 29 /PRNewswire/ -- VLSI Technology, Inc. (Nasdaq: VLSI - news) today announced that it
received a major order from Mitsubishi Electric Corporation for its highly integrated GSM solution -- the OneCT
single-chip GSM baseband solution. The $19 million order is to be used in Mitsubishi's recently announced Trium future
generations of GSM phones and is scheduled to be delivered in the third quarter of this year.

According to Takashi Yamanaka, President of Mitsubishi Electric Europe Telecom, the supply contract could reach $40
million for the coming year.

VLSI and Mitsubishi have been cooperating in the development of market-leading GSM solutions since early 1998. More
recently, based on this technical collaboration, Mitsubishi has launched Trium, an exciting new product range from
Mitsubishi Electric's European mobile communications division.

''VLSI's OneCT GSM platform is a highly integrated, single-chip baseband silicon solution which gave us a powerful
framework to more quickly leverage Trium's innovations into a superior handset,'' said Kouji Kodera, Mitsubishi Electric's
marketing manager for Trium. ''And we anticipate that Trium will take a considerable share in the market by the end of 99.
Mitsubishi is expecting to produce more than 800,000 handsets per month by Q4 1999 in Europe,'' he added.

The latest order is the result of intense joint development activity involving VLSI's Communication Products Group in
Europe, VLSI engineers both in Sophia-Antipolis, at the heart of the French Telecom Valley, and Rennes, France and the
Mitsubishi development teams in Rennes.

''Time-to-market is ever more critical in today's cellular market, and this shows how the right relationship can deliver
volume in just over a year from design start. Moreover, the new Trium product line is a great combination of state-of-the-art
technology and innovative design. VLSI is very pleased to work together with Mitsubishi to generate such excellent
products,'' said Thierry Laurent, VLSI Communication Products Group Senior Vice President.

About Mitsubishi's GSM phones

Unveiled at CeBIT, the Trium range consists of six products: Cosmo, Mondo, Galaxy, Astral, Geo, and Aria. The first
products are expected to be available in June, 1999.

For more information, trium-gsm.com.

About VLSI Communication Products Group

VLSI Technology's Communication Products Group delivers decisive advantages for customers in GSM, CDMA and
DECT, as well as multi-mode and proprietary systems. Its wireless offerings are based on architectures such as the flexible
dual-processor Velocity(TM) Standard Communication Platform(TM). This approach gives handset manufacturers a single
platform solution for all major wireless standards as well as future third-generation standards.

About VLSI Technology

VLSI Technology, Inc. designs and manufactures System-Level Silicon integrated circuits based on its FSB(TM) functional
system blocks library. Targeting its offerings toward the wireless communications, networking, consumer digital
entertainment and computing markets, the company offers its customers advanced system-level integration capabilities. The
company is based in San Jose, California, with 1998 revenues from continuing operations of $547.8 million, and
approximately 2,200 employees worldwide. Visit VLSI's homepage at vlsi.com.

About Mitsubishi

Mitsubishi Electric Corporation is a world-class supplier of electronic products for computers, communications, industrial
and visual applications. Trium is the new product range from Mitsubishi Electric's European mobile communications division,
whose HQ is in Paris, France.

The information contained in this press release includes forward-looking statements. Although the Company believes that the
expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance
that its expectations will be achieved. Important factors that could cause actual results to differ materially from the
Company's expectations include weakness in the wireless communications and consumer entertainment markets; slowing
growth or decline in the demand for the company's semiconductors; product pricing pressures and the impact of competitive
forces; loss of one or more major customers, particularly in the communications market; failure to develop and introduce
new products in a timely manner; lower factory utilization and excess capacity; and unanticipated problems experienced in
ramping up production of a new process or facility. For a more detailed discussion of these and other risk factors, see the
company's SEC reports, including but not limited to the Annual Report on Form 10-K and Quarterly Reports on Form
10-Q. The Company disclaims any duty to update the forward-looking statements contained herein, except as may be
required by law.

Velocity, Standard Communication Platform, OneC, System-Level Silicon, FSB and Functional System Block are
trademarks or registered trademarks of VLSI Technology, Inc. All other names and marks are the property of their
respective holders.

SOURCE: VLSI Technology, Inc.

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