Legerity Restructures To Focus On Three Core Businesses; Company Right-Sizes for Sustained Profitability.

Business Editors and High-Tech Writers

AUSTIN, Texas--(BUSINESS WIRE)--Nov. 14, 2002

Legerity Inc., a leading provider of analog/mixed-signal integrated circuits (ICs) for voice and data networks, today announced that the company has reorganized and streamlined its structure to focus on three primary areas of business critical to the company's future: High Performance Analog (HPA), Voice over Broadband (VoB) and Voiceband Network Access (VNA). These changes will allow the company to be profitable and cash flow positive for 2003.

"We took a hard look at every aspect of our business: future demand in the telecom industry, the global aspect of Legerity's product offerings, our proprietary high-speed analog processes, the economy and, most importantly, what we do better than any other company," explained Ron Van Dell, president and CEO of Legerity. "Based on those factors, we will concentrate our efforts on VNA, VoB and HPA going forward and have restructured the organization accordingly."

As a result, 80 Legerity employees were part of a reduction in force that is effective immediately. "We are now staffed appropriately to move into 2003 in solid financial condition and with an outstanding pipeline of new products for growth and diversification," Van Dell stated.

Hank Perret, chief financial officer, will assume the added responsibility for Legerity's Voice Network Access (VNA) business, which includes Legerity's family of SLICs, DSP-based codec/filters and line card access switch devices for a broad range of medium and long-loop applications such as central office switches, digital loop carriers, broadband loop carriers, integrated voice-data line cards and private branch exchanges. In addition, Dr. John Gammel has been named as the site director for the Pennsylvania Products Center, formerly Agere Systems' Voice Interface Solutions division, reporting to Mr. Perret. Perret, who has more than 25 years of semiconductor industry experience, joined Legerity after spending five years as CFO for Actel Corporation.

Legerity's Voice over Broadband (VoB) business will be directed by Eric Broockman, who will also continue in his role as vice president of marketing for the company. VoB includes Legerity's VoiceChip(tm) family of voice interface solutions for a wide range of short and medium loop applications such as cable telephony, voice over DSL (VoDSL) and voice over IP (VoIP). Broockman, a fabless semiconductor and communication IC veteran, previously served as CEO and president of Alchemy Semiconductor and also as vice president and general manager at Cirrus Logic and IBM, where he spent 17 years in progressively responsible positions working with DSP and analog/mixed-signal technologies.

Michael Paquette will serve as general manager for Legerity's recently formed high-performance analog (HPA) business, which focuses on delivering IC solutions and technologies that leverage the company's extensive analog/mixed-signal design expertise and high-voltage process technologies. Legerity's first offering, the exclusive BatteryDirect(tm) architecture, was introduced earlier this month. Paquette has more than 17 years of semiconductor industry experience and previously worked at Vectris Communications, Cirrus Logic/Crystal Semiconductor, Analog Devices and Allegro Microsystems.

"Hank, Eric and Mike are well qualified to lead our three businesses," Van Dell continued. "Their leadership along with our dedicated employees will give us the corporate focus required to achieve not only growth but profitability, despite the economy and the continuing sluggishness in the semiconductor industry."

About Legerity, Inc.

Legerity is a fabless analog/mixed-signal global semiconductor company providing integrated circuits for high-voltage interface, signal conditioning, signal processing and power management applications to more than 400 of the world's premier communications and consumer electronics manufacturers. Using innovative, proprietary analog and embedded digital signal processing technologies, Legerity combines industry experience, bipolar and CMOS process expertise, analog and digital circuit design capabilities and more than 600 patents to meet the design challenges of connecting the world of analog signals with the digital domain. Headquartered in Austin, Texas, Legerity has offices throughout North America, Europe and Asia. Visit Legerity on the Web at www.legerity.com.

Legerity, the Legerity logo, and combinations thereof, BatteryDirect and VoiceChip are trademarks of Legerity Inc.