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MILPITAS, Calif., Nov. 14 /PRNewswire/ -- LSI Logic Corporation (NYSE: LSI) today announced the acquisition of the Voice over Internet Protocol (VoIP) intellectual property assets and related engineering talent from ParaVoice, a subsidiary of ParaGea Communications, Inc. of Gaithersburg, Maryland.

The strategic $38.4 million asset purchase will not be financially material to LSI Logic earnings during the upcoming quarters, but is expected to be accretive over the long-term. The acquisition does not require regulatory approval.

``Our technology roadmap calls for LSI Logic to provide VoIP and VoDSL capabilities to our customers competing in the Broadband space,'' said Giuseppe Staffaroni, LSI Logic vice president of the Broadband Communications Division. ``We intend to combine this technology with our ZSP(TM) digital signal processor to offer complete single-chip solutions in the fast-growing global communications market. ''The acquisition includes 17 software and systems engineers with expertise in voice, fax, data compression and transmission over Internet protocol. The engineering team will be located at a new LSI Logic design center, located near the company's existing facility in Bethesda, Maryland.

The acquired ParaVoice engineering team will lead the development of LSI Logic's VoIP-VoDSL solution offerings and facilitate the efforts of third-party software development on a standard DSP framework for software integration.

ParaVoice specializes in voice, fax and data compression technology.

Safe Harbor for Forward-Looking Statements: The statements made in this news release by LSI Logic regarding the transaction announced today and its financial impact on LSI Logic include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities and Exchange Act of 1934, as amended. The company's results and the impact of the acquisition in future periods may be materially different from any performance suggested in this news release. Risks and uncertainties to which the company is subject by virtue of the announced transaction may include, but may not necessary be limited to factors associated with the integration of the acquired technologies with the company's technologies, the retention of acquired employees, and unforeseen market changes in technical directions and demand. In the context of forward-looking information provided in this news release, reference is made to the discussion of risk factors detailed in the company's filings with the Securities and Exchange Commission during the past 12 months.

LSI Logic Corporation is a leading supplier of communications chips for broadband, data networking, wireless and set-top box applications. In addition, the company provides chips and boards for network computing and supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1551 McCarthy Boulevard, Milpitas, CA 95035, 408-433-8000, http://www.lsilogic.com .

    Editor's Notes:
    1. All LSI Logic news releases (financial, acquisitions, manufacturing,
       products, technology etc.) are issued exclusively by PR Newswire and
       are immediately thereafter posted on the company's external website,
       http://www.lsilogic.com .
    2. The LSI Logic logo design is a registered trademark and ZSP is a
       trademark of LSI Logic Corporation.
    3. All other brand or product names may be trademarks or registered
       trademarks of their respective companies.