EXHIBIT 99.1
EDITORIAL CONTACT: COMPANY CONTACT:
Tamara Polahar Mike Wodopian
Public Relations Manager VP Business Development
(916) 854-4336 (916) 854-1113
email: tpolahar@level1.com mwodopian@level1.com
-------------------
LEVEL ONE COMMUNICATIONS TO ACQUIRE
ACCLAIM COMMUNICATIONS
Acquisition of integrated LAN/WAN switching and routing strengthens leadership
------------------------------------------------------------------------------
in 10/100 transceivers and repeaters
------------------------------------
SACRAMENTO, CALIF. -- June 25, 1998 -- Level One Communications, Inc. [Nasdaq:
LEVL], announced today that it has signed a definitive agreement to acquire
Acclaim Communications, Inc. located in San Jose, California. Acclaim is a
provider of Layer 2/3/4 Fast Ethernet and Gigabit Ethernet switches and
Integrated Multi Service Access Products. Under the terms of the agreement,
which will be recognized as a pooling of interests transaction, Level One will
issue five million shares of common stock in exchange for all outstanding shares
of Acclaim. The transaction is expected to close in early July and be accretive
to 1999 financial results.
This acquisition provides Level One with high performance multi-layer switching
and routing silicon technology that will be integrated with Level One's silicon
portfolio for networking solutions. In addition, Acclaim's LAN/WAN routing and
switching ASIC's, which enable transmission of voice, data, and video over the
Internet or over data networks such as Frame Relay and ATM, complement Level
One's existing telecom product portfolio. Level One will continue to work with
and support Acclaim's customers for existing products with a focus towards
becoming the first vendor to provide advanced Networking Systems-on-Silicon for
the Intranet and Internet infrastructures.
The explosive growth of Internet and Intranet traffic and applications is
expected to continue to stress the WAN infrastructure. "The traditional big box
routers connecting various backbone segments will have to be replaced by a new
generation of Layer 3 switches," according to Dataquest. Non-local traffic is
increasing beyond the capacity of traditional routers, creating a need for a
more seamless integration of the LAN/WAN interface.
Vish Akella, president and CEO of Acclaim stated, "Acclaim's multi-dimensional
architecture allows for seamless integration of voice and data, wire speed
switching and routing, within the LAN and WAN. Acclaim has embedded application
intelligence and bandwidth management into its silicon for the next generation
of integrated voice and data networks."
1
"The combination of Level One's Optimal Signal Processing (OSP) transceiver
technology and Acclaim's high performance layer 2/3/4 switching and routing
technology will set new standards for integration and performance as the LAN and
WAN continue to converge," commented Dr. Robert S. Pepper, president and CEO of
Level One. "Acclaim's technologies in both the wide area and the local area
provide exceptional synergies with our existing market focus in the telecom and
network segments. Vish Akella was recently named to Red Herring's Top 10
Entrepreneurs which we believe is a testament to Acclaim's innovation and
technology," concluded Dr. Pepper
LEVEL ONE COMMUNICATIONS, INC.
Level One Communications (Nasdaq: LEVL) a leader in communications IC
technology, provides silicon connectivity solutions for high-speed telecom and
networking applications. These components are critical connecting links in
today's telecommunication and data communication (LAN/WAN) networks and are the
key building blocks for the Intranets and Internets of the future. Level One
combines its strengths in analog and digital circuit design with its
communications systems expertise to produce mixed-signal solutions with
increased functionality and greater reliability, resulting in lower total system
cost. Level One Communications, Inc. is ISO 9001 registered, illustrating the
company's commitment to world-class standards and providing high quality
products.
Company headquarters are located at 9750 Goethe Road, Sacramento, CA 95827. For
information on the company and its products, visit its site on the World Wide
Web at HTTP://WWW.LEVEL1.COM
(C) 1998 Level One Communications, Inc., Level One, the Level One logo are
- --------------------------------------------------------------------------
registered trademarks of Level One Communications. Any other product names
- --------------------------------------------------------------------------
mentioned herein are the property of their respective owners
- ------------------------------------------------------------
2