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Exhibit 99.2
FOR IMMEDIATE RELEASE MAY 29, 2001
Media Contact: Kevin Brett Investor Contact: Diana Matley
408-433-7150 408-433-4365
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kbrett@lsil.com
CC01-54
LSI LOGIC TO PURCHASE AMI's RAID BUSINESS, ENGINEERING TEAMS AND
TECHNOLOGY IN ACCRETIVE ACQUISITION
LSI Logic to gain RAID software and hardware expertise to broaden
storage solutions offerings.
MILPITAS, CA - LSI LOGIC CORPORATION (NYSE: LSI) AND AMERICAN MEGATRENDS,
INC. (AMI) TODAY ANNOUNCED AN AGREEMENT IN WHICH LSI LOGIC WILL ACQUIRE THE
ASSETS OF AMI'S MARKET-LEADING RAID (REDUNDANT ARRAY OF INDEPENDENT DISKS)
BUSINESS.
AS A RESULT OF THIS TRANSACTION, LSI LOGIC WILL GAIN THE EXPERTISE OF AMI'S
MORE THAN 200 RAID EMPLOYEES, INCLUDING 120 HARDWARE AND SOFTWARE ENGINEERS
BASED IN NORCROSS, GA, FREMONT, CA AND OTHER SALES SERVICE LOCATIONS. LSI LOGIC
WILL ALSO ACQUIRE AMI'S MEGARAID SOFTWARE INTELLECTUAL PROPERTY AND HOST ADAPTER
BOARD PRODUCT FAMILY. THESE BOARDS SUPPORT FIBRE CHANNEL, SCSI AND OTHER LEADING
STORAGE I/O STANDARDS.
"We are very proud that the AMI MegaRAID controller has been the number one RAID
host adapter for three years in a row," said Subramonian Shankar, AMI president,
chairman and co-founder. "This transaction will allow our work to be taken to
even greater heights with LSI Logic's leadership and marketing capabilities. AMI
will continue to focus on the development of new products, consistent with the
entrepreneurial spirit that defines our company."
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"This strategic acquisition will strengthen LSI Logic's product offerings for
our customers in the storage components space," said John D'Errico, LSI Logic
executive vice president for Storage and Internet Computing Components. "The
addition of AMI's market-leading MegaRAID technology and products to LSI Logic's
Fibre Channel and SCSI expertise will result in next-generation products that
meet the requirements of our customer base."
The rapid growth of data, voice and video transmitted through the
Internet has triggered a complementary expansion of the storage components
market. This trend is expected to continue as Internet usage becomes even more
prevalent. RAID technology has now become ubiquitous, penetrating every segment
of the fast-growing worldwide server market.
The market research firm, IDC projects that the SCSI and Fibre
Channel Host Adaptor Board market will grow from about $1.7 billion in 2000 to
approximately $2.8 billion by 2003. The acquisition of AMI's leadership RAID
technology and products, along with LSI Logic's proven silicon components and
software, will enable LSI Logic to provide customers with complete storage
interface solutions in this market.
LSI Logic will use the purchase method of accounting for the
acquisition of AMI's RAID business. The cash transaction is anticipated to close
during LSI Logic's second quarter ending June 30 and is expected to be
immediately accretive to LSI Logic's earnings. The agreement is subject to the
satisfaction of customary closing conditions and regulatory approvals including
the Hart-Scott-Rodino Antitrust Improvements Act.
LSI Logic will not hold a conference call in connection with this
transaction.
Safe Harbor Statement: This news release contains forward-looking
statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities and Exchange Act of 1934, as amended.
These forward-looking statements, which include, but are not limited to, the
financial condition, results of operations and businesses of LSI Logic and AMI
and the benefits expected to result from the contemplated transaction, involve
risks and uncertainties that could cause actual results or outcomes to differ
materially from those contemplated by the forward-looking statements. Factors
that could cause or contribute to such differences include, but are not limited
to, the risk that the conditions relating to regulatory clearances might not be
satisfied in a timely manner or at all, risks relating to integration of the
acquired technologies and business with the company's technologies and business,
the successful completion of technology and product development efforts, the
retention of acquired employees, and unforeseen market changes in technical
directions and demand. In the context of forward-looking information provided in
this news release, reference is made to the discussion of risk factors detailed
in the company's filings with the Securities and Exchange Commission during the
past 12 months.
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About LSI Logic
LSI Logic Corporation (NYSE: LSI) is a leading designer and manufacturer of
communications and storage semiconductors for applications that access,
interconnect and store data, voice and video. In addition, the company supplies
storage network solutions for the enterprise. LSI Logic is headquartered at 1551
McCarthy Boulevard, Milpitas, CA 95035, 866-574-5741 (within U.S.), 719-533-7679
(outside U.S.), http://www.lsilogic.com.
About AMI
Founded in 1985, American Megatrends Inc. (AMI) has dedicated its resources to
providing OEMs, resellers and systems integrators with leading edge computer
technologies. This privately held company, best known for its Basic Input/Output
Systems or BIOS, also supplies its state-of-the-art hardware, software,
utilities and RAID controllers to over 55 percent of today's high-tech
manufacturers. Headquartered in Atlanta, AMI has locations in the U.S. and
throughout the world including London, Madras, Munich, Seoul, Taipei and Tokyo
to better serve our customers. AMI is a voting member of the Storage Networking
Industry Association (SNIA). For more information on AMI, its products or
services, call 1-800-U-BUY-AMI or visit www.ami.com.
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1. All LSI Logic news releases (financial, acquisitions, manufacturing,
products, technology etc.) are issued exclusively by PR Newswire and are
immediately thereafter posted on the company's external website,
http://www.lsilogic.com.
2. The LSI Logic logo design is a registered trademark of LSI Logic
Corporation.
3. All other brand or product names may be trademarks or registered trademarks
of their respective companies.