Centillium Communications Announces Program for Stock Option Exchange or Supplemental Grants.Business Editors FREMONT, Calif.--(BUSINESS WIRE)--Oct. 22, 2001 Centillium Communications, Inc. (Nasdaq:CTLM CTLM Imaging Computed tomography laser mammography A diagnostic technique using lasers to produce a 3-D cross-sectional image of the breast without x-rays. See Mammography. ), innovator of broadband communications technology Noun 1. communications technology - the activity of designing and constructing and maintaining communication systems engineering, technology - the practical application of science to commerce or industry , today announced a program offering voluntary stock option exchange or supplemental stock option grants for its employees. Under the program, participants will be able to tender their stock options that have an exercise price equal to or greater than $10 per share. In return, participants will receive replacement stock options to be issued on a date that is at least six months plus one day from the date of cancellation of the tendered options. The exercise price of the replacement options will be equal to the last reported trading price Trading price The price at which a security is currently selling. of Centillium stock on the grant date of those options. The terms and conditions of the replacement options, including the vesting schedules Vesting Schedule Schedule setting forth when, and to what extent, options become exercisable or restricted stock or stock units are no longer subject to forfeiture (for example, 20% per year over five years). , will be substantially the same as the terms and conditions of the cancelled options. Centillium employees who do not tender certain eligible options under the program will receive a supplemental grant of Centillium options. The amount of the supplemental option grant will depend on the exercise price of the holder's existing out-of-the-money options Out-of-the-money option A call option is "out of the money" if the strike price is greater than the market price of the underlying security. That is, you have the right to purchase a security at a price higher than the market price, which is not valuable. , with larger grants going to those holding higher-priced options. The exercise price of the supplemental options will be equal to the last reported trading price of Centillium stock on the grant date of those options. As of October 17, 2001, options to purchase approximately 10.4 million shares of CTLM common stock were outstanding under the Company's stock option plans. Options to purchase approximately 7.5 million of these shares are expected to be eligible for the option exchange program. Upon the commencement of the offer to exchange, Centillium will file with the Securities and Exchange Commission a completed Schedule TO and related exhibits and documents, including the offer to exchange. All Centillium option holders eligible to participate in the offer to exchange are strongly encouraged to read the Schedule TO and related exhibits and documents, including the offer to exchange, when these become available. These documents will contain important information about the offer to exchange. The Schedule TO and related exhibits and documents will be available without charge at the Securities and Exchange Commission website at www.sec.gov and will be available without charge from Centillium to all Centillium option holders eligible to participate in the offer to exchange. About Centillium Communications Centillium Communications, Inc. is combining technical innovation and customer commitment to make broadband communications a market reality. Centillium consistently delivers value to its customers by providing broadband networking systems for applications across all market segments. The company designs and markets communications chipset solutions for central office equipment, digital loop carrier In telephone communications, a technology that increases the number of channels in the local loop by converting analog signals to digital and multiplexing them back to the end office. (DLC (1) (Data Link Control) See data link and OSI. (2) (Data Link Control) The data link layer protocol (layer 2) that is used in IBM's SNA networking. See SNA, data link protocol and Microsoft DLC. ) line cards, and customer premise equipment for Digital Subscriber Line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary ), Voice over Packet (VoP) and Premise Networking. The Centillium Communications headquarters are located at 47211 Lakeview Blvd., Fremont, CA 94538. Additional information is available at www.centillium.com. Forward Looking Statements The foregoing contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , including statements regarding the stock option exchange program, that are subject to certain risks and uncertainties, including, but not limited to, those associated with unpredictability and volatility of the market price of the Centillium's common stock between the cancellation of existing options and the grant of replacement options under the program, delays in the anticipated commencement date of the program, changes in the accounting treatment of the program, and corporate developments affecting the Company between the cancellation of existing options and the grant of replacement options under the program, as well as the "Risk Factors" set forth in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000 and the most recent Quarterly Report on Form 10-Q Form 10-Q See 10-Q. , and the Company's other filings with the Securities and Exchange Commission, available for viewing on the SEC's website at www.sec.gov. Actual results could differ materially, as a result of such factors, from those set forth. Centillium Communications and the Centillium logo are trademarks of Centillium Communications. Copyright 2001 Centillium Communications, Inc. All rights reserved. All other products or service names mentioned herein are the property of their respective owners. |
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