MIPS Technologies Agrees to Sale of Patent Properties to AST and Acquisition by Imagination Technologies

MIPS Technologies Agrees to Sale of Patent Properties to AST and Acquisition
by Imagination Technologies

SUNNYVALE, Calif., Nov. 6, 2012 (GLOBE NEWSWIRE) -- MIPS Technologies, Inc.
(Nasdaq:MIPS), a leading provider of industry-standard processor architectures
and cores for home entertainment, networking, mobile and embedded
applications, today announced it has entered into separate definitive
agreements with Bridge Crossing LLC ("Bridge Crossing"), an acquisition
vehicle of Allied Security Trust ("AST"), and Imagination Technologies Group
plc (LSE:IMG) ("Imagination") with net proceeds of approximately $7.31 per
share in cash to each holder of MIPS common stock. The total value of the
transaction represents a 40% premium to the closing price on April 11, 2012,
the day prior to the first public rumor of a potential sale of MIPS.

Bridge Crossing will acquire 498 of MIPS' total 580 patent assets for gross
proceeds of $350 million. MIPS will retain the remaining 82 patent properties
that are directly relevant and key to the MIPS architecture, and will also be
granted a royalty-free, perpetual license under all of the patent properties
sold to Bridge Crossing. MIPS will also provide a restricted license to Bridge
Crossing under the 82 retained patent properties. Subject to consummation of
the Bridge Crossing transaction, Imagination will acquire the operating
business of MIPS, the 82 aforementioned patent properties, and license rights
to all of the remaining patent properties of MIPS for $60 million.

Both transactions are subject to customary closing conditions, including the
approval of MIPS' shareholders, who will vote separately on each of the
transactions. Approval of the Bridge Crossing transaction is not subject to
shareholder approval of the Imagination acquisition. The proceeds of the
transactions, which are subject to a holdback of approximately $100 million to
cover tax and other liabilities, will be distributed to MIPS shareholders on a
pro-rata basis through a recapitalization of MIPS common stock.

"After a thorough review of a wide range of alternatives to enhance
shareholder value, our Board of Directors concluded that the best alternative
for the Company would be the sale of patent properties to a consortium formed
by AST, and a sale of the Company to Imagination. Importantly, as part of
Imagination, the MIPS architecture will continue to be supported, and
protected by MIPS patents. This highly successful outcome builds upon the rich
heritage of the MIPS processor architecture, while effectively monetizing the
Company's valuable patent portfolio," said Sandeep Vij, CEO of MIPS.

Mr. Vij continued, "By combining the technologies and skills of MIPS and
Imagination, a leading multimedia, communications and embedded processor
technology company, we believe that we can together create a powerful,
well-differentiated and highly influential alternative to existing CPUs in the
market. The move is highly strategic and presents clear benefits to MIPS'
customers, employees, and partners."

According to Hossein Yassaie, CEO, Imagination Technologies, "The MIPS
architecture is widely respected, and is complementary to Imagination's
existing CPU capabilities. I believe that this proposed transaction will be
welcomed by both companies' customers, including our mutual partners, and by
the electronics industry at large. Post deal closure, Imagination will
continue to support and expand the MIPS architecture and ecosystem, with the
combined effort aiming to create a new industry-leading force in CPU
development and licensing."

The sale of the MIPS patent properties has been unanimously approved by the
Board of Directors of MIPS and by the CEO of Bridge Crossing, and is subject
to customary closing conditions, including the approval of MIPS' shareholders,
voting separately from approval of the sale of the Company to Imagination, and
not conditioned on the approval or consummation of that sale. The subsequent
sale of the Company has been unanimously approved by the Boards of Directors
of MIPS and Imagination, and is subject to customary closing conditions,
including the separate approval of MIPS' shareholders and consummation of the
Bridge Crossing patent property sale. Neither transaction is subject to any
financing condition. Bridge Crossing has deposited the full amount of the
purchase price into an escrow account to fund the patent property sale
transaction. MIPS anticipates that the transactions will close within Q1
CY2013.

J.P. Morgan is acting as exclusive financial advisor; Skadden, Arps, Slate,
Meagher & Flom LLP is acting as legal advisor; and Ocean Tomo is acting as
intellectual property advisor to MIPS. Fenwick & West LLP and Morrison &
Foerster LLC are acting as legal advisors to AST. Jefferies is acting as
exclusive financial advisor, and DLA Piper LLP is acting as legal advisor to
Imagination.

To read Imagination's press announcement about the proposed acquisition,
issued separately today by Imagination, please visit
http://www.imgtec.com/corporate/newsdetail.asp?NewsID=700.

About Allied Security Trust

AST (www.alliedsecuritytrust.com) is a Delaware Statutory Trust that
identifies and analyzes high-technology patents being sold on the market,
circulates those to its 26 member companies (each with annual revenues >US$0.5
billion), and combines funds of interested member companies to purchase
patents. It then sells the patents subject to licenses granted to
participating members and interested third parties, with proceeds returned to
the members that funded the purchase. Since its inception in 2007 and prior to
this transaction, AST has completed 38 acquisitions of patent rights, sold 31
patent portfolios, and granted 148 licenses.

About Imagination Technologies

Imagination Technologies Group plc (LSE:IMG) – a global leader in multimedia
and communication technologies – creates and licenses market-leading
multimedia IP cores for graphics, video, and display processing,
multi-threaded embedded processing/DSP cores and multi-standard communications
and connectivity processors. These silicon intellectual property (IP)
solutions for systems-on-chip (SoC) are complemented by platform level IP and
services, a strong array of software tools and drivers and extensive developer
and middleware ecosystems. Target markets include mobile phone, handheld
multimedia, home consumer entertainment, mobile and low-power computing, and
in-car electronics. Its licensees include many of the leading semiconductor
and consumer electronics companies. Imagination has corporate headquarters in
the United Kingdom, with sales and R&D offices worldwide. See: www.imgtec.com.

About MIPS Technologies, Inc.

MIPS Technologies, Inc. (Nasdaq:MIPS) is a leading provider of
industry-standard processor architectures and cores for home entertainment,
networking, mobile and embedded applications. The MIPS architecture powers
some of the world's most popular products including over 700 million units in
our most recent fiscal year. Our technology is broadly used in products such
as digital televisions, set-top boxes, Blu-ray players, broadband customer
premises equipment (CPE), WiFi access points and routers, networking
infrastructure and portable/mobile communications and entertainment products.
Founded in 1998, MIPS Technologies is headquartered in Sunnyvale, California,
with offices worldwide. For more information, contact (408) 530-5000 or visit
www.mips.com.

The MIPS Technologies, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11351

Cautions Regarding Forward-Looking Statements

All statements included in this press release, other than statements or
characterizations of historical fact, are forward-looking statements within
the meaning of the federal securities laws, including the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are based on
our current expectations, estimates and projections about our industry and
business, management's beliefs, and certain assumptions made by us, all of
which are subject to change. Forward-looking statements can often be
identified by words such as "anticipates," "expects," "intends," "plans,"
"predicts," "believes," "seeks," "estimates," "may," "will," "should,"
"would," "could," "potential," "continue," "ongoing," similar expressions, and
variations or negatives of these words. Such statements are made in reliance
upon the safe harbor provisions of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Examples of
forward-looking statements include, but are not limited to, the expected date
of closing of the transactions, the ability to complete the transactions
considering the various closing conditions, the potential benefits of the
transactions, any statements of plans, strategies, objectives and any
statements of expectation or belief. These forward-looking statements are not
guarantees of future results and are subject to risks, uncertainties and
assumptions that could cause our actual results to differ materially and
adversely from those expressed in any forward-looking statement.

Important risk factors that may cause such a difference for MIPS in connection
with the transactions include, but are not limited to the following: the
possibility that the acquisition may not be completed, the possibility of
litigation (including related to the proposed transaction), the parties'
ability to meet expectations regarding the timing and completion of the
transactions, as well as other factors concerning MIPS (which may be
applicable to the company following the transactions) discussed in "Risk
Factors" under Item 1A. of MIPS' Annual Report on Form 10-K for the most
recently ended fiscal year and its other filings from time to time with the
SEC, which are available at http://www.sec.gov. All forward-looking statements
in this release are qualified in their entirety by this cautionary statement,
and no person undertakes any obligation to update publicly any forward-looking
statement for any reason, except as required by law, even as new information
becomes available or other events occur in the future. Readers are cautioned
not to place undue reliance on these forward-looking statements that speak
only as of the date hereof.

Additional information about the Proposed Transactions and Where to Find It

In connection with the proposed transactions, MIPS intends to file a
definitive proxy statement and other relevant materials with the SEC. Before
making any voting decision with respect to the proposed transaction,
stockholders of MIPS are urged to read the proxy statement and other relevant
materials because these materials will contain important information about the
proposed transactions. The proxy statement and other relevant materials, and
any other documents to be filed by MIPS with the SEC, may be obtained free of
charge at the SEC's website at www.sec.gov or from MIPS' website at
www.mips.com or by contacting MIPS Investor Relations at: ir@mips.com.
Investors and security holders of MIPS are urged to read the proxy statement
and the other relevant materials when they become available before making any
voting or investment decision with respect to the proposed transactions
because they will contain important information about the transactions and the
parties to the transactions.

MIPS and its executive officers, directors and other members of their
management and employees, under SEC rules, may be deemed to be participants in
the solicitation of proxies from MIPS' stockholders in favor of the proposed
transactions. A list of the names of MIPS' executive officers and directors
and a description of their respective interests in MIPS are set forth in the
proxy statement for MIPS' 2011 Annual Meeting of Stockholders, MIPS' 2012
Annual Report on Form 10-K and Amendment No. 1 thereto, in any documents
subsequently filed by its directors and executive officers under the
Securities Exchange Act of 1934, as amended, and the proxy statement and other
relevant materials filed with the SEC in connection with the transactions when
they become available. Certain executive officers and directors of MIPS have
interests in the proposed transactions that may differ from the interests of
stockholders generally, including benefits conferred under retention,
severance and change in control arrangements and continuation of director and
officer insurance and indemnification. These interests and any additional
benefits in connection with the proposed transactions will be described in the
proxy statement relating to the transactions when it becomes available.

MIPS and MIPS-Based are trademarks or registered trademark of MIPS
Technologies, Inc. in the United States and other countries. All other
trademarks referred to herein are the property of their respective owners.

CONTACT: Media Contact:
         Jen Bernier-Santarini
         MIPS Technologies, Inc.
         +1 408-530-5178
         jenb@mips.com
        
         Investor Contact:
         Bill Slater
         MIPS Technologies, Inc.
         +1 408-530-5200
         ir@mips.com

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