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September 10, 2004

News Release: Dspfactory Ltd. to be acquired by AMIS Holdings

From: Dspfactory - Sept 10, 2004


Dspfactory Ltd. to be acquired by AMIS Holdings

WATERLOO, ON, September 10, 2004 -- Dspfactory Ltd., a leading provider of ultra-low power digital signal processing (DSP) technology for digital hearing aids, wireless headsets and other portable audio devices has signed an agreement to sell substantially all of its assets to AMIS Holdings Inc., parent company of AMI Semiconductor (NASDAQ: AMIS), a designer and manufacturer of state-of-the-art integrated mixed-signal and structured digital products for the automotive, medical and industrial sectors. The transaction includes USD 42.35 million in cash and stock, subject to certain purchase price adjustments, with a potential additional payment of USD 8.5 million in stock upon achievement of certain milestones before the end of 2006. The transaction is expected to close within 60 days.

Launched in 1998 as a spin-off of Unitron Industries, Dspfactory quickly achieved significant sales growth, becoming the leading supplier of integrated circuits in the global digital hearing aid market. It also established itself at the forefront of advanced audio technology for the rapidly-growing digital wireless headset market, broadening the application of its core technology.

"We are very excited by this announcement," commented Robert Tong, Dspfactory’s president and CEO. "The diversified market presence, established channels and world class design and manufacturing capabilities of AMI Semiconductor will allow the business to become even more successful," added Tong.

Dspfactory also announced today a reduction of its workforce. Eight positions in Waterloo are affected in addition to four positions in its Switzerland office. A further 15 employees will be offered contracts to assist with the transition. "It’s natural with a transaction such as this that there will be a shift in the required skill mix as we align to a new operating model," said Tong. "It’s bittersweet that not all the employees that have helped us achieve such success will be continuing with us as we move forward. We will be doing everything we can to help those affected make the transition."

Company chairman and co-founder, Mike Stork, commented, "Waterloo Region continues to gain international recognition as a hotbed for world-class engineering and high-tech product development. With a strong entrepreneurial spirit in the region, it is inevitable that investments made in companies such as Dspfactory will help fuel the next generation of local startups, creating new positions and spawning further growth in the community."

About Dspfactory
Dspfactory Ltd. is a leading provider of ultra-low power audio processing systems for portable and wearable devices. Many of the world's top electronic device manufacturers rely on Dspfactory's reconfigurable integrated circuit solutions to deliver exceptional audio performance. Dspfactory's micro-miniature technology is optimized for digital hearing aids, wireless headsets, and other portable, battery-powered devices. Dspfactory also provides development tools, training and audio expertise to accelerate the implementation of digital signal processing (DSP) solutions. Founded in 1998 and based in Waterloo, Ontario, Dspfactory has facilities in Canada and Switzerland. For more information, visit

About AMI Semiconductor
AMI Semiconductor (AMIS) is a leader in the design and manufacture of silicon solutions for the real world. As a widely recognized innovator in state-of-the-art integrated mixed-signal products, mixed-signal foundry services and structured digital products, AMIS is committed to providing customers with the optimal value, quickest time-to-market semiconductor solutions. Offering unparalleled manufacturing flexibility and dedication to customer service, AMI Semiconductor operates globally with headquarters in Pocatello, Idaho, European corporate offices in Oudenaarde, Belgium, and a network of sales and design centers located in the key markets of the United States, Europe and the Asia Pacific region. For more information, please visit the AMIS Web site at


Media contact:

For Dspfactory:
Richard McClurg
Marketing Manager
Dspfactory Ltd.
Tel: +1 519 884 9696 Ext. 2283