Emcore Selling Div. to IQE

Emcore Corp., a provider of compound semiconductor solutions for the broadband and wireless communications and solid-state lighting markets, announced that it will sell its US epitaxial foundry business to epi-wafer services provider IQE plc for $16 million in cash.

IQE, based in Cardiff, Wales, will purchase all Electronic Materials & Device Div. (EMD) assets, including inventory, fixed assets and intellectual property. For the financial year that ended Sept. 30, 2005, EMD's total revenue was $12.2 million and the value of assets was $9 million, IQE said. The transaction is subject to IQE shareholder approval and successful completion of financing, expected in mid-August. Closing is scheduled to occur immediately following completion of its financing, IQE said. The company will pay $13 in cash upon completion of the transaction and another $3 million in quarterly payments that start three months after the closing.

IQE was formed in May 1999 by the merger of two epitaxial wafer companies supplying electronic and optoelectronic materials produced using MOCVD (metal organic chemical vapor deposition) and MBE (molecular beam epitaxy) equipment platforms. Its US operations are based in Bethlehem, Pa. EMD uses MOCVD technology developed by Emcore to produce both GaAs- and GaN-based transistor wafers for use in power amplifiers and switches in GSM, CDMA multiband wireless handsets, Wi-MAX, Wi-Fi, cellular handsets and in wireless LAN applications.

IQE said it will continue to operate EMD as a stand-alone entity in the Somerset facility and will offer all of its approximately 50 workers employment with IQE. For more information, visit: www.iqep.com