Zarlink Sells its Equity Interest in Mitel Networks
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OTTAWA, Aug. 16 /-- Zarlink Semiconductor Inc. (NYSE/TSX:ZL) today announced that it has sold its Mitel Networks Corporation ('Mitel') shares for US$12.9 million, following the approval of the merger of Mitel and Inter-Tel (Delaware) Incorporated ('Inter-Tel').
Zarlink obtained ownership of 10 million common shares of Mitel through the sale of its Systems Business in Fiscal 2001. In Fiscal 2002, Zarlink acquired a put right on its shares as a result of conditions obtained by a new investor in Mitel. On June 4th, 2007, Zarlink and other put right holders agreed to an amendment to the put right as a result of Mitel's announced proposed merger with Inter-Tel and associated refinancing arrangements.
As provided in the amended put right, Zarlink received payment from Mitel of US$1.29 per share. The US$12.9 million in proceeds received through the sale of this investment results in an additional US$0.10 EPS (earnings per share) for the second quarter Fiscal 2008 as the Mitel shares were carried on Zarlink's books at no value. In light of this payment and the Company's recent acquisition of Legerity, Zarlink will be issuing revised guidance for the second quarter Fiscal 2008 within the next week.
About Zarlink Semiconductor
For over 30 years, Zarlink Semiconductor has delivered semiconductor solutions that drive the capabilities of voice, enterprise, broadband and wireless communications. The Company's success is built on its technology strengths including voice and data networks, optoelectronics and ultra low-power communications. For more information, visit www.zarlink.com.
Shareholders and other individuals wishing to receive, free of charge, copies of the reports filed with the U.S. Securities and Exchange Commission and Regulatory Authorities, should visit the Company's web site at www.zarlink.com or contact Investor Relations.
Source: ZARLINK SEMICONDUCTOR
CONTACT: Ed Goffin, Media Relations, (613) 270-7112,
edward.goffin@zarlink.com;
Mike McGinn, Investor Relations, (613) 270-7210,
mike.mcginn@zarlink.com
