California Micro Devices Announces Foundry Agreement; Advanced Wafer Production To Be Performed by ASMC of Shanghai.

Business Editors/High-Tech Writers

MILPITAS, Calif.--(BUSINESS WIRE)--March 7, 2002

California Micro Devices (Nasdaq:CAMD) today announced it has entered into a wafer supply agreement with Advanced Semiconductor Manufacturing Corporation (ASMC) of Shanghai. This agreement establishes ASMC as a manufacturing site for California Micro Devices' Application Specific Integrated Passive (ASIP(TM)) devices and analog semiconductors. This move towards a `fab-lite' model will enable CAMD greater flexibility to respond to high volume demands for the company's products designed for the PC, and mobile markets.

ASMC, located in the heart of China's "Silicon Plains" in Shanghai is one of the largest wafer foundries in China. The company operates two fab lines: a 5-inch, class 10 bipolar line and a 6-inch, class 1 CMOS line which combine for a capacity of 480,000 high quality wafers per month. ASMC has earned industry leading quality certifications including ISO 9002, QS-9000 and ISO 14001.

The two companies have worked closely in transferring California Micro Devices thin film processes to ASMC to support production of its ASIP product line. Additionally, California Micro Devices will utilize ASMC's CMOS process to produce its line of analog semiconductors. The expanded manufacturing capability will enable California Micro Devices to expand its markets and strengthen its leadership position by focusing on providing high volume, application specific designs to PC, wireless handset, and PDA customers.

"ASMC's focused business strategy is well aligned our own," said Robert V. Dickinson, CEO of California Micro Devices. "Their robust process technology and commitment to quality make them a good partner for California Micro Devices."

CAMD has begun transferring manufacturing processes to ASMC and expects the transition to be completed by Q3, 2002. This allows California Micro to restructure its manufacturing facilities and focus product needs between the Tempe, Arizona facility and the ASMC foundry in Shanghai.

"The markets and products that California Micro Devices participates in are an excellent fit with ASMC's wafer foundry business model," says Tony Liu, president of ASMC. "The wafer supply agreement we are announcing today will allow both companies to focus on their strengths while positioning themselves for future growth."

About California Micro Devices Corporation

California Micro Devices Corporation is a leading supplier of Application Specific Integrated Passive (ASIP(TM)) networks and related analog semiconductors. Within the company's broad product line are highly integrated solutions that ensure signal integrity, EMI (electromagnetic interference) filtering, ESD (electrostatic discharge) protection and smart power management for a broad spectrum of computing, communications, consumer, medical and lighting applications. Detailed corporate and product information may be accessed at www.calmicro.com.

About ASMC

Advanced Semiconductor Manufacturing Corporation of Shanghai (ASMC) previously known as Philips Semiconductor Corporation of Shanghai, was established in March 1995. ASMC is a hi-tech company based in the heart of China's Silicon Plain, Shanghai and has been dedicated to providing wafer foundry manufacturing services for semiconductor companies. ASMC is the largest wafer fabrication company in China and operates one 5 inch wafer fab and one 6 inch wafer fab with annual output of 360K top-quality, high-yield wafers. ASMC focuses on manufacturing excellence and is dedicated to demonstrating integrity in business to the worldwide semiconductor industry. ASMC is an ISO9002, QS9000 and ISO14001 certified company. Detailed information may be accessed at www.asmcs.com.