Renesas Electronics Reaches a Definitive Agreement to Transfer Certain Assets and Shares of Subsidiaries Related to its LTE

  Renesas Electronics Reaches a Definitive Agreement to Transfer Certain
  Assets and Shares of Subsidiaries Related to its LTE Modem Technology

Business Wire

TOKYO -- September 4, 2013

Renesas Electronics Corporation (Representative Director, Chairman and CEO,
Hisao Sakuta, hereafter "Renesas") and its wholly-owned subsidiary Renesas
Mobile Corporation (Chief Executive Officer: Hideaki Chaki, hereafter "RMC")
today announced that it decided to transfer all the shares of Renesas Mobile
Europe Oy, RMC's subsidiary (hereafter "RME"), and Renesas Mobile India
Private Limited, RME's subsidiary (hereafter "RMI") to Broadcom Corporation
(hereafter "Broadcom") (together with certain assets related to its LTE modem
technology hereafter "Transfer"), and executed a definitive agreement
(hereafter "Definitive Agreement") with Broadcom to effect such transfer, upon
the terms and subject to the conditions of the agreement.

1. Reason for Transfer

Renesas and RMC announced on June 27 that they would stop development
activities and sales expansion of the 4th ^ generation wireless modem
developed by RME and RMI (hereafter "LTE Modem"), and work towards the
termination of this business. After the announcement, Renesas and RMC had
started performing the steps necessary to end these activities. During the
process, however, Broadcom proposed Renesas and RMC to acquire the LTE Modem
technology. Reviewing this proposal, Renesas and RMC reached a conclusion that
it would be desirable for all the stakeholders to effect the Transfer to
Broadcom, a prominent technology innovator and global leader in semiconductors
for wired and wireless communications.

This transaction enables Renesas and RMC to quickly exit from the LTE Modem
business and focus more on their core business, while enabling Broadcom to
strengthen its semiconductor business for communications. Therefore, this
transaction is highly expected to improve corporate values of both parties.

2. Outline of Subsidiaries Transferred


(1) Renesas Mobile Europe Oy
(a) Company Name       Renesas Mobile Europe Oy
(b) Headquarter        Helsinki, Finland
(c) Title, Name of     Managing Director, Juha Heikki Tenhunen
Representative
(d) Business           Development of LTE Modem, etc.
(e) Capital            35 million Euro
(f) Founded            September 1, 2010
(g) Major
Shareholders and       RMC (100.00%)

Percentage Held
                       Capital     RME is a wholly owned subsidiary of RMC,
                                     a wholly owned subsidiary of Renesas.
                        Human       Three employees of Renesas concurrently
(h) Relationship                     serve as Members of the Board.
with Renesas                         Renesas provides RME with short-term
                       Business    loans, while a subsidiary of Renesas
                                     contract out the design and development
                                     of LTE Modem, etc. to RME.
(i) Financial Situation in the past three years
                             FY2010            FY2011           FY2012
Shareholders' Equity          36                41               47
(Millions of Euro)
Total Assets (Millions of     75                71               75
Euro)
Shareholders' Equity per      3,581             4,070            4,708
Share (Euro)
Net Revenue (Millions of      49                164              166
Euro)
Operating Income (Millions    1                 7                7
of Euro)
Net Income (Millions of       1                 5                6
Euro)
Net Income per Share (Euro)   71                489              638
Dividends per Share (Euro)    0                 0                0


(2) Renesas Mobile India Private Limited
(a) Company Name       Renesas Mobile India Private Limited
(b) Headquarter        Bangalore, India
(c) Title, Name of     Managing Director, Ilkka Savimäki
Representative
(d) Business           Development of LTE Modem, etc.
(e) Capital            340 million Rupee
(f) Founded            October 13, 2010
(g) Major
Shareholders and       RME (99.9974%)
                        RMC (0.0026%)
Percentage Held
                       Capital     RMI is a subsidiary of RME, a wholly
                                     owned subsidiary of RMC.
                                     One employee of Renesas concurrently
                                     serves as a Member of the Board. One
(h) Relationship        Human       Member of the Board of Renesas'
with Renesas                         subsidiary concurrently serves as a
                                     Member of the Board
                                     A sub-subsidiary of Renesas contract out
                       Business    the design and development of LTE Modem,
                                     etc. to RMI.
(i) Financial Situation in the past three years
                             FY2010            FY2011           FY2012
Shareholders' Equity          365               448              545
(Millions of Rupee)
Total Assets (Millions of     507               549              656
Rupee)
Shareholders' Equity per      94                116              141
Share (Rupee)
Net Revenue (Millions of      279               900              1,005
Rupee)
Operating Income (Millions    61                212              251
of Rupee)
Net Income (Millions of       25                83               97
Rupee)
Net Income per Share          7                 21               25
(Rupee)
Dividends per Share (Rupee)   0                 0                0

3. Outline of Buyer


(a) Company Name               Broadcom Corporation
(b) Headquarter                Irvine, California, U.S.A.
                                President, CEO and Member of the Board of
(c) Title, Name of             Directors
Representative
                                Scott A. McGregor
(d) Business                   Communications semiconductors
(e) Shareholders' Equity       (*1)
(f) Consolidated Net Assets    (*1)
(g) Consolidated Total Assets  (*1)
(h) Founded                    1991
                                           There is no important capital
                               Capital   relationship between Broadcom and
                                           Renesas.
(i) Relationship with the                  There is no important human
Seller                          Human     relationship between Broadcom and
                                           Renesas.
                                           There is no important business
                               Business  relationship between Broadcom and
                                           Renesas.

(*1) Please refer to Broadcom's investor site at http://investor.broadcom.com

4. Subjects to be Transferred and Purchase Price

(1) Subjects to be Transferred
All the shares of RME and RMI as well as certain assets related to the LTE
Modem technology shall be transferred.

(2) Purchase Price
Expected purchase price is approximately USD 164 million including all the
shares of RME and RMI as well as certain assets related to the LTE Modem
technology. The final purchase price is subject to adjustment under the
Definitive Agreement.

5. Number of Shares Transferred, and Number of Shares Before and After
Transfer

(1) RME
a) Number of Shares Before Transfer  10,000 shares (% held: 100%)
b) Number of Shares Transferred      10,000 shares (% held: 100%)
c) Number of Shares After Transfer   0 shares (% held: 0%)


(2) RMI
                                      3,872,500 shares (% held: 100%)
a) Number of Shares Before Transfer  *) 100% held by RME and RMC combined
                                      with
                                      RMC holding one hundred shares
                                      3,872,500 shares (% held: 100%)
b) Number of Shares Transferred      *) 100% held by RME and RMC combined
                                      with
                                      RMC holding one hundred share
c) Number of Shares After Transfer   0 shares (% held: 0%)

6. Schedule of Transfer


(1) Board Resolution and Execution of           September 4, 2013
Definitive Agreement
(2) Execution Date of Transfer                  October 1, 2013 (Target Date)

7. Outlook

It is uncertain at this time what impact this decision will have on the
Renesas Group’s consolidated financial performance in the 2nd quarter of this
fiscal year and after, but we would make an immediate announcement should any
impact be identified.

                                                                           End

Contact:

Renesas Electronics Corporation
Corporate Communications Department
Kyoko Okamoto, 03-6756-5555 (direct)
pr@renesas.com