Global Communication Semiconductors, Inc. -- GCS-- and Global Communication Technology, Corp. -- GCTC -- Announce Merger Agreement.

Business Editors/High-Tech Writers

TORRANCE, Calif. & HSINCHU, Taiwan--(BUSINESS WIRE)--Dec. 8, 2003

Merged Company to be called Global Compound

Semiconductors Corporation (GCSC)

GCS, Inc. (Global Communications Semiconductor, Inc.) a US-based, pure-play III-V compound semiconductor wafer foundry and GCTC (Global Communication Technology, Corp.), also a pure-play III-V compound semiconductor wafer foundry located in Taiwan, announced today an agreement to combine operations, forming Global Compound Semiconductors Corporation.

The Board of Directors and shareholders of both companies have approved this agreement, which is expected to close in Q1 2004.

"This is a very exciting time in compound semiconductor foundry services and I am reminded of my previous experience in Taiwan during the formation of silicon foundry industry. Like silicon, in the early 90's, we are now seeing growth in III-V foundries fueled by the expanding telecommunications and wireless markets and the growth of fabless design companies," commented Don Brooks, recently elected Chairman of the Board of GCSC. "The combination of these two companies creates a high-volume, low-cost 6-inch manufacturing facility in Taiwan while maintaining the Torrance facility, known for cutting-edge technologies, meeting the needs for technology-driven, high-performance markets," continued Mr. Brooks.

Both companies have been leaders in offering pure-play III-V compound semiconductor foundry services for the wireless and telecommunications electronics market segments. Independently, they have been able to carve out successful market niches. The newly formed Global Compound Semiconductors Corporation becomes a clear industry leader as a III-V compound pure-play semiconductor foundry services provider."

"The ISO 9001 certified Hsinchu, Taiwan facility is a state-of-the-art, cassette-to-cassette, fully automated 6-inch wafer processing plant with a Class 1 clean room. The low cost of labor and overhead associated with Taiwan, the location in the Hsinchu Science-Based Industrial Park, known as 'Taiwan's Silicon Valley,' enables foundry customers to take advantage of the mature infrastructure of related testing and packaging companies, conveniently clustered around Hsinchu," stated Mr. Brooks.

Dr. Sam Lee, currently CEO of GCS, will become CEO of the newly formed GCSC when merger is competed in early 2004. Dr. Lee states, "The Torrance, California facility is ISO 9001-2000 certified and offers foundry services for InGaP HBT, InP HBT, SAW and PHEMT processes and provides optoelectronic foundry services for QWIP detectors, modulators & PIN diodes used in the surveillance, security and fiber optic communication markets. Several major compound semiconductor device manufacturers, on three continents, have qualified this facility for volume manufacturing programs. GCSC customers will have immediate access to the broadest process portfolio, latest technologies, a worldwide customer service organization, high-volume, low-cost 6-inch manufacturing and one-stop supply chain management."

For more information on Torrance contact:
Bill Vitez
Director of Sales
23155 Kashiwa Court
Torrance, CA 90505
Tel:  [phone] x 138
Fax:  [phone]
Email:  [e-mail]
Web site: http://www.gcsincorp.com

For more information on Hsinchu contact:
Jack Lu
Assistant VP, Sales & Marketing
4F No. 10 Prosperity Rd.  1
Hsinchu Science-Based Industrial Park, Taiwan
Tel:  [phone] x8809
Fax:  [phone]
Email:  [e-mail]
Web site: http://www.gct.com.tw