MERGER AND

ACQUISITION
ADVANTAGE
It provides a business with a potentially bigger
market share and it opens the business up to a
more diversified market.
Makes a business bigger, increase its
production and gives more financial strength to
become stronger against the competitor on the
same market.

The most common reason for firms to enter

into merger and acquisition is to merge their

power and control over market.
leads in over all cost reduction giving a

competitive advantage that is feasible as a

result of raised buying power and longer
production run.

DISADVANTAGE
Merger may result to loss of experienced

workers aside from workers in leadership

positions.
Merging two firms that are doing similar

activities may mean duplication and over

capability within the company that may need
retrenchment.
Merger can reduce competition and give new
firm monopoly power with less competition
and greater market share the new firm can
usually increase prices for consumers.

BROADCOM AND MOBILINK TELECOM

MOBILINK TELECOM A Leading Provider of
Chipsets and Manufacturing-Ready Reference
Designs for Cellular Phones, Wireless PDAs and
Cellular Modem Cards.
BROADCOM CORPORATION The leading provider of

intergrated circuits.
REASON FOR ACQUISITION
Broadcom to Provide Complete Solutions for
Wireless Wide, Local and Personal Area network

Product Extension Mergers

A product extension merger takes place
between two business organizations that deal in
products that are related to each other and
operate in the same market.
The product extension merger allows the
merging companies to group together their
products and get access to a bigger set of
consumers. This ensures that they earn higher
profits.

TERMS OF ACQUISITIONS
In connection with the acquisition, Broadcom will

issue approximately 5.6 million shares of its Class

A common stock in exchange for all outstanding
shares of Mobilink capital stock and upon exercise
of outstanding employee stock options and other
rights of Mobilink.
Up to approximately 2.0 million additional shares

of Broadcom Class A common stock will be

reserved for future issuance to the shareholders
and option holders of Mobilink upon satisfaction of
certain performance goals.

 Acquisition Marks Broadcom's Entry into the $11 Billion-Plus

Cellular
MOBILINK TELECOM
Mobilink's products are currently in production and being
used by major manufacturers of devices designed for the
Global System for Mobile Communications (GSM), the
world's most prevalent mobile phone standard.
Mobilink is completing field-testing and certification of its
General Packet Radio Service (GPRS) products, targeted to a
market that delivers Internet Protocol packet services to over
650 million GSM subscribers.
Mobilink's product offering includes an all-CMOS single-chip
baseband processor, protocol stacks, and MMI (Man-Machine
Interface) and application software, as well as customized
final product designs tailored to its customers' specifications.

BROADCOM
Broadcom Corporation is the leading

provider of
highly integrated silicon solutions that enable
broadband communications and networking of
voice, video and data services.
Using proprietary technologies and advanced
design methodologies, Broadcom designs,
develops and supplies complete system-on-achip solutions and related hardware and
software applications for every major
broadband communications market.

Broadcom has already introduced a number of

leading products enabling 802.11b and

Bluetooth networks.
The addition of Mobilink's GSM/GPRS

integrated circuits, software and design

capabilities will further enable Broadcom to
support the convergence of wireless networks,
allowing delivery of high bandwidth content to
users virtually anytime, anywhere, and driving
the transformation of the handset from a
voice-only device into a multimedia gateway.

 With its broad product portfolio and access to

every major broadband communications

market, Broadcom is an ideal complement for
Mobilink's growing reach into the mobile
segment.

Broadcom's acquisition of Mobilink is a

significant validation of the technology,

products and team in which Ericsson first
invested in 2001.

Important factors that may cause such a

difference for Broadcom in connection with its

acquisition of Mobilink Telecom, Inc. include, but
are not limited to,
the risks inherent in acquisitions of technologies
and businesses, including the timing and
successful completion of technology and product
development through volume of production.
Integration issues, costs and unanticipated
expenditures, changing relationships with
customers, suppliers and strategic partners,
potential contractual, intellectual property or
employment issues, accounting treatment and
charges.

"Broadcom's entry into the cellular chip,

design and software markets through the

acquisition of Mobilink
represents an
important strategic step for our company,
one that will not only allow us to provide wide
area roaming capability over the digital
cellular networks, but also enhance synergies
with our best-in-class products for enterprise
802.11b wireless networks and short range
wireless links over Bluetooth(TM) connections,
-Dr. Henry T. Nicholas III,
Broadcom's President and
CEO.