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Analog Devices to Sell Microphone Product Line to InvenSense

  Analog Devices to Sell Microphone Product Line to InvenSense

Business Wire

NORWOOD, Mass. -- October 14, 2013

Analog Devices, Inc. (NASDAQ: ADI) today announced that it has signed a
definitive agreement to sell the assets of its microphone product line to
InvenSense, Inc. (NYSE: INVN). InvenSense will acquire the assets related to
analog and digital output microphones, as well as certain support operations,
for $100 million in cash. These microphones were primarily used in consumer
applications and are expected to represent less than one percent of ADI’s
total revenue in the fourth quarter of fiscal year 2013, which ends November
2, 2013.

“This agreement will allow ADI to focus on combining precision sensing
technology and signal processing systems expertise to deliver the highest
value to customers in our highest priority markets while driving sustainable
growth and profitability for ADI,” said Mark Martin, vice president of ADI’s
Sensor Products and Technology Group. “The impact of high performance inertial
sensing innovation is increasing across automotive, industrial, and healthcare
applications and we are focusing our resources accordingly.”

Pursuant to the agreement potential additional amounts will be payable to ADI
upon achievement over twelve months of certain revenue milestones by
InvenSense.

The boards of directors of both companies have approved the transaction, which
is expected to close by the end of October 2013, following the satisfaction of
customary closing conditions. Tax assessments and any additional closing costs
will reduce the net amount of proceeds received by ADI from the transaction.

About Analog Devices

Innovation, performance, and excellence are the cultural pillars on which
Analog Devices has built one of the longest standing, highest growth companies
within the technology sector. Acknowledged industry-wide as the world leader
in data conversion and signal conditioning technology, Analog Devices serves
over 60,000 customers, representing virtually all types of electronic
equipment. Analog Devices is headquartered in Norwood, Massachusetts, with
design and manufacturing facilities throughout the world. Analog Devices'
common stock is included in the S&P 500 Index.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements address a variety of subjects including, for example: the expected
closing of the transaction between ADI and InvenSense; the potential payment
to ADI of earnout consideration based on revenue from sales by InvenSense of
microphones; the expected benefits of the transaction to ADI, InvenSense and
customers; and ADI’s future business strategy. Statements that are not
historical facts, including statements about beliefs and expectations, are
forward-looking statements. Such statements are based on current expectations
and are subject to a number of factors and uncertainties which could cause
actual results to differ materially from those described in the
forward-looking statements. The following important factors and uncertainties,
among others, could cause actual results to differ materially from those
described in these forward-looking statements: the closing of the transaction
is subject to certain closing conditions, the failure of any of which may
delay or prevent the closing of the transaction; ADI may not receive all or
any part of the earnout consideration; the transaction may involve unexpected
costs, thereby reducing the net proceeds to ADI; the expected benefits of the
transaction may not be achieved in a timely manner, or at all; and disruption
from the transaction may adversely affect relationships with customers,
suppliers or employees. For detailed information about factors that could
cause ADI’s actual results to differ materially from those described in the
forward-looking statements, please refer to ADI’s filings with the Securities
and Exchange Commission, including ADI’s most recent Quarterly Report on Form
10-Q. Forward-looking statements represent management’s current expectations
and are inherently uncertain. We do not undertake any obligation to update
forward-looking statements made by us.

Contact:

Analog Devices, Inc.
Investors Contact:
Ali Husain, 781-461-3796
ali.husain@analog.com
or
All Other Inquiries Contact:
Maria Tagliaferro, 781-461-3282
maria.tagliaferro@analog.com
 
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