Orbit Semiconductor acquires KMOS Semiconductor strengthening its ENCORE! gate array program...

SUNNYVALE, Calif.--(BUSINESS WIRE)--June 28, 1995--Orbit Semiconductor Inc. (NASDAQ: ORRA), a provider of gate array design and semiconductor manufacturing services, Wednesday announced its acquisition of KMOS Semiconductor Inc., a privately-held company located in Sunnyvale.

KMOS is a fabless

Orbit has acquired all of the outstanding capital stock of KMOS in exchange for one million shares of Orbit common stock. The transaction has been accounted for as a pooling of interests. KMOS has 23 full-time employees and, for its most recently completed fiscal year ended May 31, 1995, had revenues of approximately $7.7 million with net income of approximately $770,000. KMOS' operating results are not expected to be dilutive of Orbit's earnings per share for the fiscal year ending Dec. 31, 1995. There can, however, be no assurance regarding future operating results.

"KMOS' mixed-signal gate array family brings to Orbit a significant opportunity to expand its market position as a leading supplier of mixed analog/digital ASICs," said Gary Kennedy, Orbit president and chief executive officer. "Orbit has been providing manufacturing services to mixed-signal designers, along with mixed-signal process development programs, since 1982. With the acquisition of KMOS and the outstanding analog design expertise they possess, Orbit becomes a leading provider of mixed-signal gate arrays that can operate on currents at micropower level and at voltages that range from 1 to 18 volts. The analog cells provided by KMOS will definitely enhance our ENCORE! digital gate array program."

"Orbit and KMOS share a common commitment to customer service," said Richard Kash, president and founder of KMOS. "Both organizations are dedicated to providing customers with high-performance gate arrays, in the format they need and in the time frame they require. The mixed-signal process technologies that Orbit has developed over the years as well as future development opportunities will allow KMOS analog engineers extreme latitude to design powerful gate array products."

As a wholly-owned subsidiary of Orbit, KMOS continues operations in Sunnyvale under its own name. Richard Kash has been named executive vice president of Orbit and general manager of the KMOS division, and will become a director of Orbit.

Orbit provides semiconductor design, manufacturing and engineering support services that allow system designers to manage application specific integrated circuit production, scheduling and inventory control effectively. Through its ENCORE! program, Orbit offers a netlist conversion service featuring a direct replacement of FPGAs (field programmable gate arrays ) or other programmable devices by Orbit's gate-array technology. ENCORE! gives customers the benefits of low-cost, high-performance gate arrays as as well as quick-turn service, packaging flexibility and low minimum-volume requirements. A leader in FPGA conversion services, Orbit has converted more than 500 ASIC designs through its ENCORE! program. Orbit also provides high-reliability manufacturing and prototyping services.

Orbit sells its products and services to designers of a wide variety of electronic systems and products for application in the medical, telecommunications, consumer, aerospace and defense, computers and peripherals and other industries.

KMOS, a fabless semiconductor company, is a supplier of CMOS mixed-signal (analog-digital) ASIC designs based on cost-effective gate arrays. KMOS designs are used in a wide variety of applications serving the medical, industrial, commercial and communications markets.

CONTACT: Orbit Semiconductor Inc., Sunnyvale

Gary Kennedy or Joe Wai, 408/744-1800