Broadcom Acquires Sunext Design for $48 Million in Cash

Broadcom Corporation has acquired Sunext
Design, Inc., a wholly-owned U.S. subsidiary of Sunext
Technology Company Limited, and has licensed certain
optical disk reader and writer technology from Sunext Technology. Sunext
Technology is a privately-held fabless semiconductor company that specializes
in optical storage technologies.

High definition optical disc players are emerging as a popular platform
for in-home entertainment worldwide by combining the benefits of a high
definition viewing experience with the convenience and familiarity of DVD
media. Sunext single-chip front-end technology is a strong complement to the
industry-leading Broadcom system-on-a-chip (SoC) back-end Blu-ray Disc
platform, and key to an integration roadmap that will drive the cost of these
devices down to levels that enable widespread consumer adoption of high
definition optical disc players and recorders.

With the increasing adoption of full high definition 1080p digital
televisions, and with the consumer electronics and media industries now united
behind the Blu-ray Disc high definition DVD standard, demand for these high
definition players and recorders is expected to increase significantly. As the
market grows, manufacturers will strive to reduce prices by adopting optimized
SoC solutions that integrate front-end and back-end functions. Broadcom, a
leader in integrating advanced functionality, is responding to this trend by
acquiring rights to the most highly integrated optical disc front-end
technology available. The addition of Sunext’s leading technology, along with
the experienced engineering team from Sunext Design that can continue to
enhance those technologies, will enable Broadcom to derive significant time to
market advantages in the development of these highly integrated solutions.

"To further the widespread adoption of high definition Blu-ray Disc media
players, it is imperative to have cost-effective, complete silicon solutions,
and the acquisition by Broadcom of Sunext Design and license of its associated
technology puts Broadcom firmly ahead in the race to offer a complete Blu-ray
solution," said Michelle Abraham, Principal Analyst at In-Stat. "The merging
of these technologies will help drive down the costs of next-generation
Blu-ray Disc players and enable OEMs to deliver products that meet the price
points required for mass adoption by consumers."

"The technology that will win the market share battle for Blu-ray Disc
players and recorders will be the one that provides the highest quality audio
and video processing while integrating the most advanced front-end and back-
end functions into a single low cost device," said Dan Marotta, Senior Vice
President and General Manager of Broadcom’s Broadband Communications Group.
"Sunext’s technology and strong engineering team will enable Broadcom to integrate optical reader/writer capability into our industry leading Blu-ray
Disc silicon solutions."

"Broadcom’s strong position in the Blu-ray Disc player and other home
digital multimedia market segments makes it an ideal partner for Sunext
Technology, making our optical technologies available to an existing customer
base that is demanding integrated, high performance yet low cost solutions,"
said Dr. Phil Mak, President of Sunext Technology. "Armed with our robust
solution, Broadcom will help drive the next evolution of these devices to the
digital home while Sunext continues to deliver products to our customers and
core markets."

In connection with the transaction, which closed on Friday, February 29th,
2008, Broadcom will pay up to $48 million in cash in exchange for all of the
outstanding shares of Sunext Design’s capital stock and for the license rights
granted by Sunext Technology. A portion of the consideration payable to the
stockholders of Sunext Design will be placed into escrow pursuant to the terms
of the acquisition agreement, and a substantial portion of the consideration
payable to Sunext Technology for the license rights is subject to the
achievement of certain deliverables post-closing. The boards of directors of
both companies have approved the transaction. Broadcom may record a one-time
charge for purchased in-process research and development expenses related to
the acquisition in its first quarter. The amount of that charge, if any, has
not yet been determined.

Sunext Technology Company Limited

Broadcom’s Broadband Communications Group