Press Release

Entropic Communications Selected to Acquire Trident Set-Top Box System-on-a-Chip Assets and Intellectual Property

SAN DIEGO, Feb. 27, 2012 (GLOBE NEWSWIRE) -- Entropic Communications, Inc. (Nasdaq:ENTR), a leading provider of silicon and software solutions to enable connected home entertainment, today announced it has been selected as the successful bidder to acquire Trident Microsystems' set-top box (STB) system-on-a-chip (SoC) assets for a purchase price of $65 million, a $10 million dollar increase to its original offer.

Today's announcement follows the completion of an auction, and the final transaction is subject to approval of the United States Bankruptcy Court for the District of Delaware. A court order authorizing Trident to sell the STB SoC assets to Entropic is expected to be entered on or about March 6, 2012.

"This acquisition marks an important milestone for Entropic and is an exciting new chapter in our company's history, enabling us to combine our best-in-class MoCA solutions, including MoCA 2.0, with Trident's STB SoC business to deliver a complete system solution to the world's premier cable, telco and satellite service providers, while expanding our total addressable market over the next several years," said Patrick Henry, president and CEO, Entropic. "Our successful bid brings us closer to adding Trident's complementary assets, portfolio, research and development and global presence to Entropic. We believe the acquisition brings inherent value to both organizations' customers, employees and partners, and we look forward to closing the transaction." 

Entropic expects to make employment offers to approximately 375 Trident employees worldwide.

The transaction, which remains subject to customary closing conditions, is expected to close by the end of the first calendar quarter of 2012. Entropic will provide additional details as to the financial implications of the transaction and guidance for the combined business following the close of the transaction.

About Entropic Communications

Entropic Communications, Inc. (Nasdaq:ENTR) is a leading fabless semiconductor company that is engineering the future of connected home networking and entertainment by providing next-generation silicon and software technologies to the world's leading cable, telco and satellite service providers, OEMs and consumer electronics manufacturers. As a co-founder of MoCA (Multimedia over Coax Alliance), Entropic pioneered and continues to evolve the way high-definition television-quality video and other multimedia and digital content such as movies, music, games and photos are brought into and delivered throughout the home. For more information, visit Entropic at www.entropic.com.

The Entropic Communications logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4255

Forward-Looking Statements

Statements in this press release that are not strictly historical in nature constitute "forward-looking statements." Such statements include, but are not limited to, statements regarding the anticipated benefits of the proposed acquisition and anticipated timing of bankruptcy related events impacting the sale process. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause Entropic's actual results to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include, but are not limited to, the risk that the acquisition will not be completed and that Entropic's expenses related to the acquisition will not be reimbursed or recouped; risks associated with Trident's bankruptcy; the risk that Trident's set-top box business will deteriorate before the acquisition is closed as a result of the bankruptcy or for other reasons; the risk that Entropic will be required to invest substantially more in the business, or in integrating the business with Entropic's existing operations, than presently anticipated; risks associated with integrating a newly acquired business which is larger, more geographically dispersed and substantially more complex than Entropic's existing business; Entropic's reliance on key employees of the acquired business and the risk that Entropic will not be able to hire or retain such employees; risks that Entropic's systems, infrastructure and personnel may not be adequate to effect a rapid and orderly integration of the acquired business; risk that anticipated benefits of the acquisition will not be realized; risks associated with the dependence of the acquired business on a limited number of suppliers and customers; risks associated with entering into a new business segment; risks associated with international operations; technology risks; competition; the risk that the market for HD video and multimedia content delivery solutions may not develop as Entropic anticipates; and other factors discussed in the "Risk Factors" section of Entropic's Annual Report on Form 10-K for the year ended December 31, 2011. All forward-looking statements are qualified in their entirety by this cautionary statement. Entropic is providing this information as of the date of this release and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

CONTACT: Investor Contact:
         Debra Hart
         Director, Investor Relations
         +1 858.768.3852
         debra.hart@entropic.com

         Media Contact:
         Robbin Lynn
         Marketing Communications Manager
         +1 760.579.2261
         robbin.lynn@entropic.com

         Chris Fallon
         Finn Partners for Entropic Communications
         +1.917.974.1667
         chris@finnpartners.com

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Entropic Communications