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CHIPS AND TECHNOLOGIES INC. ANNOUNCES CORPORATE RESTRUCTURING

 SAN JOSE, Calif., Nov. 19 ~PRNewswire~ -- Chips and Technologie s Inc. ("Chips") (NASDAQ-NMS: CHPS) today announced it is restructuring its operations to reduce expenses and increase its focus on key strategic products. Among the restructuring plans to be implemented are reductions in headcount associated with streamlining of operations and consolidation of its facilities.
 As a part of controlling overall expenses, Chips has reduced its headcount, through a previous reduction in force and through normal attrition, by 20 percent since June 30, 1992. The company expects to further reduce headcount by approximately 20 percent from the restructuring announced today and further attrition.
 Gordon A. Campbell, president and CEO of Chips, said, "Chips continues to experience increased competition in the marketplace and intense price competition on most of its mature products as well as continued weakness in demand in the PC market. All of these factors continue to adversely affect the company's net sales, gross margin and operating results. Revenues associated with processor and co-processor products have been substantially less than we anticipated. We have also experienced declines in revenues from our mature Chipset products. In addition, the market place for handheld computers using PC~CHIP has not developed at the rate we had anticipated. Chips intends to stabilize its operating results by reducing expenses to a point which is in line with current revenue levels. This reduction in expenses puts us in good position to be able to return to profitability and position us for greater success as our new products start shipping in volume."
 "We are also reorganizing the company to make more efficient use of our resources and increase our focus on the growth opportunities we believe are available to us. We are encouraged by the market acceptance of the Vampire graphics controllers, as well as graphics controllers for the non-IBM environment, and design wins that continue to be awarded for PC~CHIP. We believe that this restructuring will allow us to more efficiently address the needs of our customers and focus on our growth opportunities."
 Chips and Technologies Inc. is a supplier of integrated silicon, software, and design services to the worldwide microcomputer industry. The company's products include microprocessor-based solutions, VLSI CHIPSets, software accelerators, networking solutions, firmware, and design services. Chips common stock is traded over the counter and is listed on the NASDAQ National Market System under the symbol "CHPS."
 -0- 11~19~92
 ~CONTACT: Gary Martin of Chips and Technologies, 408-434-0600~
 (CHPS)


CO: Chips and Technologies Inc. ST: California IN: CPR SU: RCN

ML-BR -- SJ001 -- 2668 11~19~92 08:05 EST
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Publication:PR Newswire
Date:Nov 19, 1992
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