C-Cube Cashes In Chips

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LSI Logic Corp. said it will acquire chip-maker C-Cube Microsystems Inc. for
$878 million in stock, claiming that the move will bolster its advancement into
the set-top-box-silicon arena and the overall 'digital-home' market.

To that end, LSI will gain access to C-Cube's line of processors, which
target set-tops, as well as DVD players, personal video recorders, home media
servers and so-called residential gateways.

LSI said the melding of companies and technology will position it to tackle
cable, satellite, terrestrial and digital-subscriber-line set-top sectors.

C-Cube's customers include Sony Corp., Samsung Electronics America Inc.,
Motorola Inc., Pace Micro Technology plc and Philips Consumer Electronics
Co.

'LSI Logic complements C-Cube very well in achieving the leading position in
the networked digital home,'' C-Cube president and CEO Umesh Padval said in a
press release.

The deal is expected to close by June 30. At that time, each outstanding
share of C-Cube common stock will be exchanged for 0.79 shares of LSI stock.

LSI forecast that C-Cube will begin adding to its earnings this
year.

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