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To: William Chaney who wrote (18504)	5/19/1999 7:05:00 AM
From: Paul Lee	Read Replies (1) \| Respond to of 25814

LSI Logic and Silterra(TM) Announce $120 Million Technology Licensing Agreement MILPITAS, Calif., May 19 /PRNewswire/ -- LSI Logic Corporation (NYSE: LSI) and Silterra(TM) (Malaysia) Sdn. Bhd., a wholly-owned subsidiary of Wafer Technology (Malaysia) Sdn. Bhd., announced today a technology licensing and manufacturing agreement valued at $120 million to LSI Logic. Under terms of the five-year agreement, LSI Logic will license its deep sub-micron G11+(TM) and G12(TM) process technologies to Silterra for use in its Kulim, Malaysia factory, which will be operational in Q4 2000. LSI Logic will receive $120 million in licensing fees, cost-sharing benefits and an undisclosed equity position in Wafer Technology (Malaysia). As a result of this agreement, LSI Logic will share development costs with Silterra and will have access to Silterra's foundry services to respond to customer demand. "The global semiconductor industry is in a growth mode, driven by the rapid increase in Internet acceptance," said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer. "This agreement will give us additional flexibility to quickly respond to additional capacity demands, and it allows us to share process development costs with Wafer Technology." "The licensing agreement is good for both companies," said Cy Hannon, Silterra president and CEO. "Access to this technology positions Silterra as a serious competitor in the semiconductor manufacturing services industry. We will aggressively pursue all opportunities to develop a share in the market segment covered by the licensed technologies." LSI Logic's G12(TM) system-on-a-chip process (0.18 micron drawn, 0.13 effective) technology enables customers to combine radio frequency, mixed-signal, logic and embedded memory on one chip. The process technology offers 26 million usable logic gates on a tiny 20-by-20 millimeter (3/4 x 3/4-inch) silicon chip. The LSI Logic-Wafer Technology (Malaysia) technology licensing and manufacturing agreement is subject to regulatory approval by the Malaysian government and completion of certain closing conditions.