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Avago Technologies to Acquire CyOptics, a Leading Optical Chip and Component Supplier to the Datacom and Telecom Markets



Avago Technologies to Acquire CyOptics, a Leading Optical Chip and Component
Supplier to the Datacom and Telecom Markets

  * Single-mode InP laser and receiver capability will strengthen Avago's
    portfolio for next-generation 40G and 100G Enterprise and Data Center
    markets
  * Conference call to discuss the transaction is scheduled for Thursday,
    April 11, 2013 at 5pm EDT

SAN JOSE, Calif., SINGAPORE, and LEHIGH VALLEY, Pa., April 11, 2013 (GLOBE
NEWSWIRE) -- Avago Technologies Limited (Nasdaq:AVGO), a leading supplier of
analog interface components for communications, industrial and consumer
applications, today announced the execution of a definitive agreement to
acquire CyOptics, Inc., a leader in Indium Phosphide (InP) optical chip and
component technologies for the data communications and telecommunications
markets, for an aggregate acquisition price of approximately US$400 million in
cash.

Avago believes the acquisition of CyOptics will strengthen Avago's fiber
optics product portfolio for emerging 40G and 100G enterprise and data center
applications. CyOptics' single-mode InP laser, receiver and photonics
integration capability will help extend Avago's technology leadership position
in these applications. Avago's optical transceiver products primarily leverage
VCSEL-based technology today. In addition, the acquisition of CyOptics will
facilitate Avago's establishment of a complementary optical components
business, not only to serve growing segments of the access, metro and
long-haul markets, but also for enterprise and data center segments.

CyOptics designs, fabricates and packages a broad portfolio of optical
component products across enterprise, data center, access, metro and long-haul
market segments. CyOptics' optical components are integrated into optical
transceivers, transponders and line cards. Leveraging its Bell Labs and Lucent
heritage, CyOptics has built a broad product portfolio and a customer base
that includes the leading module and system OEMs. CyOptics revenue has more
than tripled over the past three years. During calendar year 2012, CyOptics
net sales were approximately $210 million, up 21% from 2011.

"We believe CyOptics' leading InP technology and optical manufacturing
capability will strengthen Avago's fiber optics portfolio and accelerate our
ability to capture next generation 40G and 100G enterprise and data center
sockets," stated Hock Tan, President and CEO of Avago. "With CyOptics, we also
see interesting revenue growth opportunities in delivering a broad range of
proprietary components to the market."

"We are delighted to join Avago Technologies, a company with a long history of
innovation and a strong position in the wired infrastructure market. We
believe this transaction presents tremendous opportunities for our customers
and our employees," said Ed Coringrato, President and CEO of CyOptics. "I
would also like to take this opportunity to thank our long standing investors,
JVP and especially their founder, Dr. Erel Margalit, for their support and
guidance over the past decade in building CyOptics into the significant
industry participant it is today. My gratitude as well to our recent partners,
TA Associates, for their vote of confidence and support."

Avago intends to fund the transaction with cash on-hand. The transaction is
subject to customary closing conditions, including the receipt of regulatory
approvals in the United States, and is expected to close during Avago's third
fiscal quarter of 2013.

Cowen and Company LLC provided a fairness opinion to Avago Technologies and
Latham & Watkins LLP is serving as the company's legal counsel. Raymond James
& Associates, Inc. is serving as CyOptics' financial advisor and Goodwin
Procter LLP is serving as the company's legal counsel.

Conference Call

Avago Technologies Limited will host a conference call, solely to discuss
details of the transaction. A live webcast and the accompanying presentation
relating to the transaction will be available in the "Investors" section of
Avago's website at www.avagotech.com in advance of the conference call.

Conference call date: April 11, 2013

Time: 2:00pm Pacific (5:00pm Eastern)

Dial in #:  US (866) 515-2907, International +1 (617) 399-5121.

Passcode is 10968094

A replay of the call will be available for one week by dialing 888-286-8010
(US) or 617-801-6888 (International) and the passcode is 87133275. A webcast
of the conference call will also be available in the "Investors" section of
Avago's website at www.avagotech.com.  

About Avago Technologies Limited

Avago Technologies Limited is a leading designer, developer and global
supplier of a broad range of analog semiconductor devices with a focus on
III-V based products. Avago's product portfolio is extensive and includes
thousands of products in three primary target markets: wireless
communications, wired infrastructure and industrial & other.

About CyOptics, Inc.

Leveraging its Bell Laboratories heritage, CyOptics is a global technology
leader in Indium Phosphide based optical components. CyOptics' products enable
applications primarily in the Fiber-To-The-Home, Enterprise/Data Center and
Long Haul/Metro segments of the communications network. CyOptics is a
privately held company with major shareholders JVP and TA Associates. 

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements, including statements by
management, within the meaning of the safe harbor provisions of the United
States Private Securities Litigation Reform Act of 1995. Forward-looking
statements include, but are not limited to (i) statements about the expected
benefits of the planned acquisition of CyOptics, (ii) future financial and
operating results following the closing of the transaction, (iii) the combined
organization's plans, objectives, expectations and intentions with respect to
future operations and products, (iv) the combined organization's competitive
position and opportunities, (v) the impact of the transaction on the market
for the combined organization's products, (vi) the timing of the completion of
the transaction and (vii) other statements identified by words such as "will",
"expect", "intends", "believe", "anticipate", "estimate", "plan" and similar
expressions. These forward-looking statements are based on current
expectations, estimates, forecasts and projections of future company or
industry performance, based on management's judgment, beliefs, current trends
and market conditions, and involve risks and uncertainties that may cause
actual results to differ materially from those contained in the
forward-looking statements. Accordingly, we caution you not to place undue
reliance on these statements. For Avago, particular uncertainties that could
materially affect future results include, but are not limited to the failure
of the transaction to close for any reason; the failure of the combined
organization to achieve the expected growth prospects, synergies and cost
savings expected from the transaction or any delay in the realization thereof;
delays, challenges and expenses associated with integrating CyOptics and its
business and employees with Avago's existing businesses and employees; the
competitive position and opportunities for the combined organization, loss of
significant customers of the combined organization, including as a result of
the transaction; the ability to improve the CyOptics business operating margin
and maintain Avago's gross margin; global economic conditions and concerns;
cyclicality in the semiconductor industry or in the combined organization's
target markets; quarterly and annual fluctuations in operating results;
increased dependence on the volatile, wireless handset market; the combined
organization's competitive performance and its ability to continue achieving
design wins with customers; dependence on contract manufacturing and
outsourced supply chain and the ability to improve cost structure through
manufacturing outsourcing; prolonged disruptions of proprietary or contract
manufacturers' manufacturing facilities or other significant operations;
dependence on outsourced service providers for certain key business services
and their ability to execute to requirements; the ability to maintain tax
concessions in certain jurisdictions; the ability to protect the combined
organization's intellectual property and any associated increases in
litigation expenses; dependence on and risks associated with product
distributors; any expenses associated with resolving customer product and
warranty and indemnification claims; and other events and trends on a
national, regional and global scale, including those of a political, economic,
business, competitive and regulatory nature. Avago's filings with the
Securities and Exchange Commission, or "SEC" (which you may obtain for free at
the SEC's website at http://www.sec.gov) discuss some of the important risk
factors that may affect its business, results of operations and financial
condition. Avago undertakes no intent or obligation to publicly update or
revise any of these forward looking statements, whether as a result of new
information, future events or otherwise, except as required by law.

CONTACT: Avago
         Thomas Krause
         VP Corporate Development
         +1 408 435 7400
         investor.relations@avagotech.com

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