Elpida Memory to Receive Additional Intel Investment
Elpida to Use Proposed Investment to Accelerate Production of High-Performance DRAMs
TOKYO, JAPAN, September 2, 2003 - Elpida Memory, Inc. (Elpida), a provider of Dynamic Random Access Memory (DRAM), today announced it has signed an agreement with Intel Capital in which Intel Capital will invest 2.7 Billion Yen (approximately US$23 million*) in Elpida in return for non-voting stock. Elpida plans to use the proceeds from this proposed investment to accelerate production of high-performance DRAMs, such as DDR2 SDRAM products. Additional details were not disclosed.
In June 2003, Elpida and Intel Capital announced they had signed an agreement for Intel Capital to invest approximately US$100 million (approximately 12 Billion Yen) in Elpida in return for non-voting stock. The total amount of possible investments from Intel Capital is approximately 14.7 Billion Yen (US$123 million).
Assuming timely satisfaction of all closing conditions, including satisfactory completion of due diligence, receipt of necessary internal and regulatory approvals and achievement of a substantial additional funding amount from other investors, the parties anticipate closing the Intel Capital investments in coordination with the closing of the additional financing that Elpida intends to raise later this year.
"Elpida has been taking steps to improve its overall position to become a top-tier DRAM supplier and increase its market segment share," said Yukio Sakamoto, president of Elpida Memory, Inc. "This proposed investment will help Elpida ramp production of the next generation DDR2 SDRAM products that are starting to be used in computers and servers."
About Intel Capital
Intel Capital, Intel's strategic investment program, focuses on making equity investments and acquisitions to grow the Internet economy in support of Intel's strategic interests. Intel invests in hardware, software and services companies in several market segments, including computing, networking, and wireless communications. For more information, visit www.intel.com/capital.
About Elpida Memory, Inc.
Elpida Memory, Inc. is a manufacturer of Dynamic Random Access Memory (DRAM) with headquarters based in Tokyo, Japan, and sales and marketing operations located in Japan, North America, Europe and Asia. Elpida offers a broad range of leading-edge DRAM products. Elpida is a joint venture company formed by NEC and Hitachi on December 20, 1999. Elpida has been in operation since April 2000.
* Exchange rate of US$1.00 equals 120 Yen
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Information in this news release is current as of the timing of the release, but may be revised later without notice.