| FOR IMMEDIATE RELEASE
SAN JOSE, Calif.—June 15, 1999—Xilinx, Inc. (NASDAQ:XLNX) today announced that it has been informed by UMC Group that an equity position held by Xilinx in a joint wafer foundry in Taiwan, United Silicon Incorporated, will be converted into shares of United Microelectronics Corporation (UMC) shares which are publicly traded on the Taiwan Stock Exchange. This transaction is contingent upon regulatory approval. Xilinx is expected to receive one UMC share for every 1.35 shares of USIC. As a result, Xilinx is expected to receive approximately 220 million shares of UMC stock, or a 2 percent ownership of the combined UMC Group. On June 14, UMC announced that the respective boards of the Taiwan companies in the UMC Group unanimously approved merging three joint venture companies and one publicly traded entity into United Microelectronics Corporation (UMC). The board action is the beginning of the formal process in which United Semiconductor Corporation (USC), United Integrated Circuits Corporation (UICC), United Silicon Incorporated (USIC) and UTEK Semiconductor Corporation (UTEK) will be merged into United Microelectronics Corporation (UMC). "From a research and development standpoint, this new structure provides Xilinx with increased flexibility. We will now have access to any of the five foundries within the UMC Group. Our wafer capacity agreement with UMC Group remains the same. Additionally, this will allow Xilinx to create liquidity for its cumulative investment in the foundry," said Kris Chellam, senior vice president and chief financial officer at Xilinx. "We anticipate no fundamental change in our excellent relationship with UMC." Xilinx cautioned that the merger is not yet final, and that there is no way to predict the value or liquidity of the UMC shares Xilinx will obtain following the merger. Xilinx would be subject to a certain holding period following the merger during which it would not be able to sell the UMC shares. Xilinx does not have any current plans regarding the disposition of any UMC shares it may receive. Except for historical information contained herein, the matters set forth in the press release, such as statements relating to the amount of ownership in UMC Group, the completion of the UMC reorganization, the timing of submission to UMC shareholders for approval, and the market for and liquidity of the UMC shares expected to be received, are forward looking statements that are subject to risks and uncertainties that may cause actual results to differ materially, including general economic and stock market conditions in Taiwan, exchange rate fluctuations, the timing and the likelihood of Taiwanese regulatory approvals, the existence of any trading restrictions that may be imposed on the UMC shares to be received, the approval of UMC shareholders, and other risks detailed from time to time in Xilinx’s SEC reports, including the Form 10-Q for the three months ended December 31, 1998. Xilinx is the leading innovator of complete programmable logic solutions, including advanced integrated circuits, software design tools, predefined system functions delivered as cores, and unparalleled field engineering support. Founded in 1984 and headquartered in San Jose, Calif., Xilinx invented the field programmable gate array (FPGA) and commands more than half of the world market for these devices today. Xilinx solutions enable customers to reduce significantly the time required to develop products for the computer, peripheral, telecommunications, networking, industrial control, instrumentation, high-reliability/military, and consumer markets. For more information, visit the Xilinx web site at www.xilinx.com. Xilinx is a registered trademark of Xilinx, Inc. Other brands or product names are trademarks or registered trademarks of their respective owners. #9935
|