LSI To Acquire SEEQ Technology in $100 Million Stock Transaction

LSI Logic Corp. and SEEQ Technology, Inc. announced an agreement for LSI Logic to acquire SEEQ Technology in a transaction where SEEQ shareholders will receive LSI Logic Common Stock based on an exchange ratio of .1095 (subject to adjustment). The transaction will be valued at approximately $100 million at the present LSI Logic stock price and is expected to be accounted for as a pooling of interests.

LSI Logic anticipates completing the acquisition in its second quarter ending June 30, and expects the transaction to add to the company's earnings per share during the course of the next 12 months. The acquisition is subject to the customary closing conditions, including approval by SEEQ Technology shareholders and is subject to regulatory review.

SEEQ Technology, which reported 1998 revenues of $28.1 million, is a semiconductor designer of data communications products for the Internet-driven networking market. SEEQ's solutions for its worldwide customers include Ethernet MAC (media access controllers) and PHY (physical layer) transceivers.

LSI Logic Corporation, Phone: 408-433-8000,

SEEQ Technology, Inc. Phone 510-226-7400.