Zeevo to be Bought by Broadcom

    March 7, 2005

Broadcom has signed a definitive agreement to acquire Zeevo, a privately-held, Santa Clara-based provider of semiconductor and software solutions for Bluetooth wireless headset products.

The acquisition of Zeevo significantly accelerates Broadcom’s time to market and competitive position in the wireless headset market segment, which In-Stat/MDR estimates will grow to nearly 90 million units per year by 2008.

Broadcom has established itself as a leading supplier of Bluetooth hardware and software solutions, with its Blutonium single-chip transceivers and its WIDCOMM software, which is the most widely deployed software in the industry. Broadcom has already established a leadership position in both the mobile phone and PC segments, which today are considered the first and third largest segments of the Bluetooth market, respectively, according to In-Stat/MDR. With the acquisition of Zeevo, Broadcom is now aggressively targeting the number two market segment for wireless headsets as well.

Zeevo has introduced multiple generations of semiconductor and software solutions specifically optimized for the unique needs of wireless headsets, all of which are proven in the market and shipping in volume production. By combining Broadcom’s existing strengths, customer relationships, presence in complementary markets, and proven Bluetooth solutions with Zeevo’s technology and innovative solutions, Broadcom’s customers will benefit from a stronger product portfolio, optimized total solutions, enhanced support and a more comprehensive roadmap.

“The acquisition of Zeevo speeds our entry into the huge market for Bluetooth headset devices with a dedicated solution that complements our targeted offering of Bluetooth products,” said Robert A. Rango, Group Vice President of Broadcom’s Mobile & Wireless Group. “Adding the Zeevo solutions rounds out our portfolio as we aim for leadership in the top three segments of the growing Bluetooth market.”

“The acquisition of Zeevo by Broadcom opens up a whole new range of exciting products and market opportunities for our home-grown technology,” said Jalil Shaikh, President and CEO of Zeevo. “We look forward to combining our strengths in Bluetooth audio with Broadcom’s impressive technology portfolio and creating competitive and innovative solutions for our customers.”

Zeevo’s highly integrated silicon designs and total system solutions have been optimized for use in wireless headset applications and feature extensive advancements in silicon integration, RF design, acoustical tuning, echo cancellation and other techniques intended to deliver the clearest possible audio experience over a client Bluetooth device. Adding these products to Broadcom’s portfolio enables an immediate market entry for Broadcom with the most competitive solution available in production today. In addition, the all-CMOS design of Zeevo’s chips opens up opportunities for creative integrations, accelerated product roadmaps, and further enhancements in future generations.

“As a leader in the Bluetooth stereo headset market, we consider Zeevo’s technology to be state of the art in the industry, which is why we selected them for our products,” said Bob Wick, Senior Vice President and General Manager of Logitech Audio & Interactive Entertainment Business Unit.

Zeevo, Inc. is located in Santa Clara, California and has approximately 50 employees.

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