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LSI LOGIC COMPLETES ACQUISITION OF MYLEX BUSINESS UNIT

LSI Logic Corporation has announced the completion of an asset purchase of International Business Machines Corporation's Mylex business unit. The acquisition expands the product offerings and engineering expertise of LSI Logic's Storage Components Group and Storage Systems.

LSI Logic employed the purchase method of accounting for the acquisition of the assets of IBM's Mylex business unit. The cash transaction is expected to be accretive to LSI Logic earnings.

"Each one of our strategic acquisitions is intended to augment our intellectual property portfolio and bolster our engineering corps in our targeted markets, and this transaction is no exception," said Wilfred J. Corrigan, LSI Logic chairman and chief executive officer. "Through the Mylex acquisition, LSI Logic immediately broadened its opportunities and strengthened its competitive position in both Storage Components and Storage Systems."

Through this acquisition, Mylex PCI-RAID products and technologies will become part of LSI Logic's Storage Components Group. Mylex external RAID (Redundant Array of Independent Disks) controllers, subsystems, hardware and software technologies will be integrated into LSI Logic Storage Systems Inc.

"Today's enterprises must implement cost effective and flexible solutions to satisfy their business requirements and this is driving the demand for high-performance modular storage systems," said Tom Georgens, LSI Logic Storage Systems Inc president. "The Mylex acquisition uniquely positions us to meet these needs through the expansion of our engineering talent base and the broadening of our product offerings."

LSI Logic gains the expertise of IBM's Mylex business unit's hardware and software engineers and access to the Mylex sales channels and a customer base that includes IBM, NEC, Fujitsu-Siemens, Xyratex and Eurologic.

LSI Logic Corporation is a leading designer and manufacturer of communications, consumer and storage semiconductors for applications that access, interconnect and store data, voice and video. In addition, the company supplies storage network solutions for the enterprise. LSI Logic is headquartered at 1621 Barber Lane, Milpitas, CA 95035. Please visit our Website at www.lsilogic.com.

Contact: Diana Matley, 408-433-4365, or diana@lsil.com.