Magnum Semiconductor, Inc.

Magnum Semiconductor, Inc.

August 18, 2005 02:00 ET

Magnum Semiconductor Commences Operations and Obtains Funds for Company Expansion

FREMONT, Calif.--(CCNMatthews - Aug 18, 2005) -

Magnum Semiconductor, Inc., a recent spin-off of Cirrus Logic's video group, announced today that it commenced operations on July 1st, 2005. As a private company, Magnum Semiconductor will continue to be a premier supplier of ICs, software and reference platforms for recording, viewing and managing high quality audio/video content.

Magnum Semiconductor is well capitalized with funding from Investcorp Technology Venture and August Capital. These funds will be used for expanding research and development, as well as working capital requirements. Raj Singh, Partner at Investcorp, stated, "Magnum Semiconductor presented a unique investment opportunity in the fast growing DVD recorder market with a solid tier-1 customer base and ramping revenue streams exceeding $9 million in the June 2005 quarter." Andy Rappaport, General Partner at August Capital, said, "Magnum Semiconductor's team combines a wealth of digital audio/video processing expertise and is gifted with top-caliber engineering talent. It will enable the company to expand its leadership position in DVD recorders to new, related digital media market segments."

Magnum Semiconductor has over 150 employees worldwide. The company is headquartered in Fremont, California, with sales and engineering offices in Korea, Taiwan and China. Prior to the spin-off, Magnum Semiconductor pioneered MPEG-2 recording with its single chip MPEG-2 video codec introduced in 1998 and high-volume DVD Recorder chip set and platforms in 2003. Magnum has a strong IP portfolio of 28 patents (granted and pending).

"This venture investment from both Investcorp and August Capital is a solid endorsement of our leadership position in DVD Recorders, our marquis customer base and our strong engineering and business development teams," commented Dr. Jack Guedj, the company's Executive Vice President and acting CEO. "With our core expertise in digital media processing ICs, software and system platforms, Magnum Semiconductor will use the investment proceeds to expand its leadership position in DVD recorders and other growing digital media platforms," he added.

Magnum Semiconductor ICs and software are integrated in the video recorder systems of leading CE manufacturers whose products can be found in leading retail chains such as Best Buy, Circuit City, Target, Carrefour, Dixons, and Aldi. Raj Singh and Andy Rappaport are joining Jack Guedj as Directors of the company, as well as Terry Leeder, Senior Vice President of Cirrus Logic Inc., which holds a minority equity position in the company.

Magnum Semiconductor

Magnum Semiconductor is a premier provider of chips, software, reference platforms and engineering support for recording, viewing, and managing high-quality audio/video content. Magnum Semiconductor is headquartered in Fremont, California and has sales and engineering offices in Korea, Taiwan, and China. Further information is available at www.magnumsemi.com.

About Investcorp

Investcorp is a global investment group with more than a 23-year history of investing in alternative assets in the U.S. and Europe. In addition to technology investment, the firm has three other lines of business: corporate investment, real estate investment and asset management. Investcorp was established in 1982 and has since completed transactions with a total acquisition value of more than $25 billion. The firm now manages total investments in alternative assets of approximately $8.6 billion. Further information is available at www.investcorp.com.

About August Capital

Founded in 1995, August Capital is a leading venture capital firm that invests in innovative technology companies. With more than 100 years of combined venture, industry, and operational experience, August Capital focuses on helping outstanding entrepreneurs build large sustainable companies. August Capital has $1.3 billion under management, and has invested in more than 60 companies including Atheros, Cobalt Networks, Iridigm, Seagate, Shopping.com, Silicon Image, and Tickle. Recent investments ranged from $500,000 to $130 million in information technology businesses from semiconductors to ecommerce. The firm's partners have previously invested in a number of groundbreaking technology companies, including Actel, Adaptec, Cirrus Logic, Compaq, Grand Junction, Intuit, Linear Technology, Microsoft, MMC Networks, Sun Microsystems, Sybase, Symantec, and Visio. August Capital is located in Menlo Park, California. For more information, please visit: www.augustcap.com.

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