BRCM: Broadcom to Acquire LVL7 Systems, Inc., a Developer of Networking Software

Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has signed a definitive agreement to acquire LVL7 Systems, Inc., a privately-held developer of production-ready networking software that enables networking original equipment manufacturers (OEMs) and original design manufacturers (ODMs) to reduce development expenses and compress development timelines.

"By combining LVL7's software expertise with Broadcom® networking products, we are addressing our customers' growing demand for integrated hardware and software solutions," said Ford Tamer, Senior Vice President and General Manager of Broadcom's Enterprise Networking Group. "Additionally, the software offerings will enable Broadcom customers to address new and emerging markets -- such as wireless LAN switching or voice over IP -- more quickly, increasing the value of their current platforms."

LVL7's FASTPATH® family of software will enable Broadcom to enhance its existing product offering in the small-to-medium-sized business (SMB) market segment. OEMs targeting the SMB market will benefit from the additional software capability that Broadcom is adding to its existing platforms because a complete software solution enables those customers to get new systems to market quickly and cost effectively.

"Broadcom has been a premier partner of LVL7 for several years, and the company's established presence in the network silicon market makes a long-term partnership ideal," said Erik Dixon, CEO of LVL7 Systems. "Our software integrated with Broadcom's industry-leading Ethernet silicon will enable customers to accelerate time to market and reduce system cost."

At closing of the acquisition, Broadcom expects to pay approximately $62 million in cash to acquire outstanding shares of capital stock and vested stock options of LVL7 and liquidate outstanding LVL7 debt. A portion of the cash consideration payable to the stockholders will be placed into escrow pursuant to the terms of the acquisition agreement. The boards of directors of the two companies and the stockholders of LVL7 have approved the merger. The closing, which is expected to occur during Broadcom's fourth quarter ending December 31, remains subject to customary closing conditions. Broadcom may record a one-time charge for purchased in-process research and development expenses related to the acquisition in its fourth quarter. The amount of that charge, if any, has not yet been determined.

About LVL7 Systems

LVL7 creates production-ready networking software that enables communication system manufacturers to reduce development costs and deliver IP/Ethernet products to market faster. Integrated with the industry's leading silicon and embedded operating systems, the company's FASTPATH® software portfolio spans the small-medium-sized business, enterprise, wireless LAN, and telecom access marketplaces. LVL7 is a privately-held company located near Research Triangle Park, North Carolina. For more information, visit www.LVL7.com