Freescale Semiconductor Acquires Assets of Seaway Networks; Company Accelerates Dataplane and Content Processing Strategy and Opens Ottawa Technology Center

AUSTIN, Texas--Aug. 2, 20052, 2005--In a move to continue strengthening its communications processing leadership, Freescale Semiconductor, Inc. has acquired the assets of Seaway Networks, Inc. Privately-held Seaway Networks is a fabless semiconductor supplier of content processing technology and solutions for the data networking industry. Founded in 2001, the company is based in Ottawa, Canada.

"This acquisition aligns Seaway's content-processing expertise, technology and products with Freescale's communications processor roadmap and PowerQUICC(TM) processor portfolio," said David Perkins, senior vice president of Freescale and general manager of Freescale's Networking and Computing Systems Group. "Seaway's strong technical team and intellectual property assets complement and add value to our dataplane strategy, enabling us to enhance our technology leadership and momentum in the networking equipment market."

Seaway Networks is recognized as an innovator in high-performance, silicon-based content processing, advanced security and traffic-management solutions for data networking applications. Seaway focuses on delivering high-performance processors and subsystem products for Layer 4-7 applications that enable next-generation networking equipment.

Forty Seaway employees are joining Freescale through this acquisition. This team, representing the majority of the Seaway organization, will staff Freescale's newly formed Ottawa Technology Center. Freescale employees at the Ottawa site will work in concert with other Freescale design centers to advance the company's communications processor roadmap and data-plane processing technologies.

The marketshare leader in communications processors for more than a decade, Freescale plans to integrate Seaway technologies into its roadmap for next-generation PowerQUICC communications processors. Specifically, this acquisition will help enable Freescale to expand its leadership position in the growing market for converged Transmission Control Protocol/Internet Protocol (TCP/IP) applications.

Financial terms of the deal will not be disclosed.

About Freescale Semiconductor

Freescale Semiconductor, Inc. is a global leader in the design and manufacture of embedded semiconductors for the automotive, consumer, industrial, networking and wireless markets. Freescale became a publicly traded company in July 2004 after more than 50 years as part of Motorola, Inc. The company is based in Austin, Texas, and has design, research and development, manufacturing or sales operations in more than 30 countries. Freescale, a member of the S&P 500(R), is one of the world's largest semiconductor companies, with 2004 sales of $5.7 billion (USD).

www.freescale.com

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